Local stocks end week flat as US inflation figures spook traders

Local shares ended the week largely unchanged yesterday after four straight days of gains amid worrying news about inflation from the United States.

US inflation last month hit the highest level in 40 years with prices rising 7.5 per cent over the same month last year.

The Straits Times Index inched up 0.03 per cent or 0.95 point to 3,428.95 with 1.2 billion shares worth $1.4 billion traded after losers outnumbered gainers 255 to 184, for the first time this week.

Across the region, markets mostly ended the day with losses. The Hang Seng Index was down 0.1 per cent, the Kospi shed 0.9 per cent and Australian stocks fell 1 per cent, the biggest fall in two weeks.

There were a couple of outliers - the Nikkei was up 0.4 per cent and the KLCI gained 0.6 per cent.

Mizuho Bank economics and strategy head Vishnu Varathan said the US inflation figures subject the Federal Reserve to "the burden of great expectations".

"Specifically, from having the option of a more aggressive 50 basis points (bps) hike, the Fed is increasingly pressured to deliver on this more aggressive rendition; such that it will have to justify not hiking by 50 bps," he said, adding that markets' "hawkish expectations" have now grown.

DBS was the top gainer here, adding 1.1 per cent to $37.25. OCBC and UOB were also among the best performers, rising 0.7 per cent to $13.33 and 0.2 per cent to $32.60 respectively.

Thinly traded Azeus Systems was the biggest decliner, falling 3.7 per cent to $6. iFast Corporation was another top decliner, shedding 3 per cent to $6.35.

Among the 30 constituent counters, CapitaLand Investment was the biggest loser, down 2.1 per cent at $3.66.

Disa Limited was the most heavily traded counter by volume, with 102.2 million shares changing hands. The stock ended flat at 0.6 cent.