Singapore shares buck regional trend as optimism nudges STI up 0.1%
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Regional markets were mostly down following the release of the US consumer price index report for February.
PHOTO: ST FILE
Navene Elangovan
SINGAPORE – Local shares defied the regional gloom over trade wars and uncertainty surrounding US inflation to inch up on March 13.
The flicker of optimism sent the benchmark Straits Times Index (STI) 0.1 per cent or 4.45 points up to 3,837.52 with gainers edging out losers 247 to 236 on strong trade of 1.3 billion shares worth $1.8 billion.
Regional markets were mostly down following the release of the US consumer price index report for February, although Wall Street was more receptive. Japan’s Nikkei 225 fell 0.1 per cent, South Korea’s Kospi slipped 0.05 per cent, and Australia’s ASX 200 retreated 0.5 per cent, taking its losses over the past three sessions to over A$60 billion. The Hang Seng in Hong Kong shed 0.6 per cent.
US markets gave a mixed lead-in overnight. The S&P 500 and Nasdaq rose after investors assessed the potential fallout from worsening trade tensions with Canada and what many saw as an encouraging inflation report, but the Dow industrials seesawed all day before falling 0.2 per cent.
Mr Vishnu Varathan, Mizuho’s head of macro research for Asia ex-Japan, said US inflation in February softened more than expected to 2.8 per cent, but the drop from January was not a “decisive” solution for sticky inflation risks, as it was mostly due to a large decrease in airfares.
Inflation has also not dropped enough for the US Federal Reserve to resume interest rate cuts, he noted, saying it would be “premature” for the Fed to “let its guard down at this juncture” despite the relief provided by the February data.
The STI’s top gainer was ST Engineering, which rose 3.6 per cent to $6.25, while the biggest decliner was DFI Retail Group, down 1.3 per cent to US$2.25.
Yangzijiang Shipbuilding was the most active counter by volume, with 51.7 million shares traded. The stock fell 1.3 per cent to $2.30. THE BUSINESS TIMES
