US inflation data hits regional markets; STI up 0.2%
Across the broader market, gainers beat losers 281 to 261, after 1.7 billion securities worth S$1.5 billion change hands
SINGAPORE stocks ended higher on Thursday (Feb 13), even as US data – which indicated sticky inflation – hit regional markets.
The Straits Times Index (STI) gained 7.96 points or 0.2 per cent to 3,882.58. Across the broader market, gainers beat losers 281 to 261, after 1.7 billion securities worth S$1.5 billion changed hands.
Seatrium led the STI, extending Wednesday’s rally to end 10.9 per cent or S$0.25 higher at S$2.55.
Investor sentiment was boosted after the offshore and marine specialist announced that it has inked a memorandum of understanding with BP Exploration & Production to provide engineering, procurement, construction and commissioning services for the Tiber floating production unit.
Thai Beverage was the biggest loser on the index. It was down 2.9 per cent or S$0.015 at S$0.50.
Regional markets closed the day mostly lower after the release of January inflation data in the US. Hong Kong’s Hang Seng slipped 0.2 per cent while the Bursa Malaysia KLCI lost 0.7 per cent.
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Alvin Liew, senior economist at UOB, noted that the January data showed a hotter-than-expected report across all categories, including food, energy and housing.
US headline inflation rose 3 per cent instead of moving towards the Federal Reserve’s 2 per cent target. Core inflation, which excludes food and energy, grew 3.3 per cent.
“We still anticipate headline and core inflation to cool further into 2025 (in part due to base effects), but there are upside price risks, including higher food and energy prices, reaccelerating wage-growth pressures, higher housing and reconstruction costs due to the Los Angeles wildfires, and the biggest uncertainty is US President Donald Trump’s immigration and trade tariff policies.
“Our 2025 headline and core inflation forecasts are at 2.5 and 2.6 per cent, respectively, with the balance of risk tilted towards the upside,” Liew said.
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