Singapore stocks fall on Wednesday, bucking regional trend; STI down 0.2%

SINGAPORE stocks fell on Wednesday (Jun 8), bucking a regional trend, amid concerns of slower economic growth and higher inflation.

The benchmark Straits Times Index (STI) fell 0.2 per cent or 5.74 points to close at 3,225.80.

A quarterly survey, published by the Monetary Authority of Singapore on Wednesday, showed that private-sector economists expect Singapore’s gross domestic product (GDP) to expand by 3.8 per cent in 2022, down from 4 per cent previously.

Respondents also believe that headline inflation could hit 5 per cent for the full year, up from the prediction of 3.6 per cent in the previous survey.

Shares of Yangzijiang Shipbuilding led the decline on the STI, falling 2 per cent to S$1. The local banks were also among the decliners, with DBS, OCBC and UOB slipping between 0.1 and 1 per cent.

SATS shares climbed 2 per cent to S$4.12, emerging at the top of the index performance table.

Across the broader market, gainers outnumbered decliners 307 to 212 after 2.1 billion securities worth S$1.5 billion changed hands

Elsewhere in the region, most markets ended the day higher. Stocks in Hong Kong led gains, with the Hang Seng Index rising 2.2 per cent. The key indices in Japan, Taiwan, Shanghai and Australia rose between 0.4 and 1 per cent.

“The bounce in risk sentiment is due to a more positive China tilt, where the outlook is set to brighten up as Covid restrictions ease, and state-owned banks are obliged to increase lending again,” said Stephen Innes, managing partner at SPI Asset Management in a note.

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“It certainly feels like the tide is turning on the Mainland, though the overall tone still leans more cautiously optimistic, with key emphasis on ‘cautiously’.”