Singapore shares close higher as inflation eases; STI up 0.1%
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Across the broader market, advancers outnumbered decliners 381 to 188, after 1.8 billion securities worth $1.9 billion changed hands.
ST PHOTO: LIM YAOHUI
Ranamita Chakraborty
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SINGAPORE - Stocks on the local bourse closed higher on Aug 25 after the Republic reported that core inflation eased to 0.5 per cent in July, while headline inflation slowed to 0.6 per cent.
The Singapore Department of Statistics said core inflation, which excludes accommodation and private transport, declined due to falling prices of retail and other goods, as well as electricity and gas.
The benchmark Straits Times Index (STI) rose 0.1 per cent, or 3.47 points, to 4,256.49.
Across the broader market, advancers outnumbered decliners 381 to 188, after 1.8 billion securities worth $1.85 billion changed hands.
Regional bourses were mostly in positive territory on Aug 25. Japan’s Nikkei 225 was up 0.4 per cent, Hong Kong’s Hang Seng Index gained 1.9 per cent and South Korea’s Kospi rose 1.3 per cent.
Back home, the STI’s top gainer on Aug 25 was Mapletree Logistics Trust, which climbed 3.4 per cent, or four cents, to $1.22.
The biggest decliner, meanwhile, was DBS Bank. The counter fell 1 per cent, or 48 cents, to $50.33.
The other two local banks also ended lower. UOB fell 0.03 per cent, or one cent, to $35.39, and OCBC Bank was down 0.4 per cent, or seven cents, at $16.84.
These declines came as Singapore’s inflation figures ran contrary to economists’ expectations that the rates would hold steady from June.
In a note on Aug 25, RHB group chief economist Barnabas Gan said the bank is keeping its 2025 full-year headline and core inflation forecasts at 1.2 per cent and 0.9 per cent, respectively. The Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry have kept their forecast for both at 0.5 per cent to 1.5 per cent.
“In anticipation of the upcoming MAS policy review in October, our base case is for Singapore to maintain its policy parameters unchanged into the year end,” said Mr Gan.
“However, we do not discount the possibility of the Singapore dollar nominal effective exchange rate slope flattening and/or the band’s width widening from the current perceived ±2 per cent.” THE BUSINESS TIMES
