STI up 0.6% even as Asian markets slump amid bond sell-off, inflation fears
City Developments Ltd leads the gainers on Singapore’s blue-chip index
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[SINGAPORE] Singapore stocks ended higher on Wednesday (Sep 2).
The benchmark Straits Times Index (STI) gained 0.6 per cent or 33.74 points to finish at 5,744.11.
City Developments Ltd led the gainers on Singapore’s blue-chip index, rising 2.1 per cent or S$0.18 to S$8.58.
The worst performer among STI constituents was Seatrium , which fell 2.3 per cent or S$0.05 to S$2.12.
The three local banks ended higher. DBS gained 0.9 per cent or S$0.69 to end at S$77.60, OCBC rose 1.6 per cent or S$0.51 to S$31.85, and UOB was up 0.8 per cent or S$0.35 at S$41.77.
Within the iEdge Singapore Next 50 Index, UltraGreen.ai was the top gainer, rising 5.8 per cent or US$0.04 to US$0.735, while Haw Par was the biggest decliner, falling 2.8 per cent or S$0.41 to S$14.19.
Across the broader market, losers outnumbered gainers 323 to 231, after 1.5 billion securities worth S$1.9 billion changed hands.
Key regional indices were mostly down. Hong Kong’s Hang Seng Index declined 0.1 per cent, Japan’s Nikkei 225 fell 2.9 per cent and South Korea’s Kospi was down 4 per cent.
However, the FTSE Bursa Malaysia KLCI advanced 0.5 per cent.
The slump in Asian markets came amid a global bond sell-off, with government bond yields hitting fresh multi-year highs.
These new highs reflect inflation expectations, as well as fiscal policy risks following the renewed fighting in the Middle East, noted Neil Wilson, UK investor strategist at Saxo Markets.
“The escalation in the Middle East comes swiftly after the US Federal Reserve chair, Kevin Warsh, sounded more hawkish than many had expected,” he said in a Wednesday note, noting that markets are leaning towards a September rate hike.
“The US dollar has firmed to a two-week high and rising real yields are pressing on gold, which slid to its lowest in almost a month,” he added.
He further highlighted that the boom in debt for artificial intelligence capital expenditure is “sucking capital away from government bonds”.
This article was written with the assistance of AI and reviewed by a reporter
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