Powell statement causes markets to tank, STI drop 0.03%

KEY regional markets went the opposite way from rising bond yields on Friday, when Federal Reserve chair Jerome Powell held out the prospect of a rise in inflation and sparked off an overnight sell-off in equities and bonds in the United States.

Singapore shares closed down as the Straits Times Index dropped to 3,013.85 points, 0.03 per cent or 0.93 point lower. The gauge, however, closed about 2.1 per cent higher over the week.

SBS Transit's shares traded marginally higher at S$3.02, up 1 per cent, after the government announced in Parliament on Friday that it will review the fixed-fee framework for the Downtown Line that SBS Transit operates.

The current system results in the operator facing an unstable business, that is, when ridership is healthy and fare revenue far exceeds operating cost, it gets to enjoy a good part of the profit. But it incurs losses when takings are not enough to cover cost.

Mainboard-listed Sats closed down at S$4.30 or 1.6 per cent lower, as the aviation sector in which the ground-handler and inflight caterer operates is unlikely to enjoy a V-shaped take-off this year.

FJ Benjamin's shares were the most heavily traded, with about 168.4 million transacted as the price inched up 0.1 Singapore cent to S$0.044. The company was removed from the Singapore Exchange's watch list and also announced a partnership with e-commerce platform Lazada for its retail business.

Advancers outnumbered decliners 255 to 211 in the broader market, while S$1.61 billion transacted over a volume of 2.44 billion securities.

Most regional markets dropped, only Malaysia managed a gain.

Japan's Nikkei 225 closed at 28,864.32 points, 0.23 per cent lower, while South Korea's Kospi dropped to 3,026.26 points after shedding 0.57 per cent.

Australia's S&P/ASX 200 was at 6,710.85 points at closing bell, down by 0.74 per cent.

The Shanghai Composite Index posted a 0.04 per cent drop to 3,501.99 while Hong Kong's Hang Seng Index closed at 29,098.29, lower by 0.47 per cent.

The FTSE Bursa Malaysia Kuala Lumpur Composite Index finished trading higher at 1,600.12 points, after climbing 1.19 per cent.