Singapore stocks track Wall St gains amid optimism over rate cuts; STI up 0.6%
Tan Nai Lun
SINGAPORE shares ended higher on Wednesday (Nov 29), tracking gains on Wall Street as equities got a boost from dovish comments by a Federal Reserve official.
The benchmark Straits Times Index (STI) rose 0.6 per cent or 18.76 points to 3,084.70. Across the broader market, gainers outnumbered losers 310 to 278, after 993.1 million securities worth S$926 million changed hands.
The Asia-Pacific strategy team at Saxo Markets noted that Fed governor Christopher Waller, who is one of the most hawkish Fed officials, had warmed up to the idea of rate cuts.
He said the Fed could start lowering the policy rate if inflation continues to cool for several months. This aided a dovish repricing of the Fed curve, caused a sharp fall in the 2-year and 5-year US Treasury yields, as well as put further pressure on the dollar, the Saxo team noted.
“Fed hawk Waller’s shift to a dovish rhetoric led markets to bring forward rate-cut pricing for next year, pushing yields lower and supporting equities,” they said.
Meanwhile, key indices in the region were largely in the red. The Nikkei 225 lost 0.3 per cent, the Hang Seng Index fell 2.1 per cent, while the Kospi Composite Index and the FTSE Bursa Malaysia KLCI each dropped 0.1 per cent.
On the STI, Frasers Logistics & Commercial Trust was the biggest gainer on Wednesday, rising 3.8 per cent or S$0.04 to S$1.10.
Across the broader Singapore market, precision plastic components manufacturer Fu Yu saw active trading. Its shares rose 9.5 per cent or S$0.012 to S$0.139, after 4.5 million shares worth S$600,000 changed hands.
The company on Tuesday said it was projecting a brighter outlook for FY2024 with the launch of new transformation strategies.
The trio of local banks all ended higher. DBS gained 0.4 per cent or S$0.13 to S$31.76, OCBC rose 0.6 per cent or S$0.07 to S$12.69, while UOB was up 0.4 per cent or S$0.12 at S$27.32.
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