Singapore shares fall again on US inflation worries, Trump-Putin peace talks; STI down 0.6%

SINGAPORE – Local shares fell again on Aug 15 as investors stuck to the sidelines amid US inflation concerns and the Ukraine war peace talks in Alaska.

It was something of a lacklustre session with the Straits Times Index (STI) down 0.6 per cent or 25.99 points to 4,230.53. Losers beat gainers 302 to 233 in the broader market on much-reduced trade of 1.4 billion securities worth $1.6 billion.

Swissquote Bank senior analyst Ipek Ozkardeskaya noted that US companies have largely absorbed tariff costs so far, but this could change if higher prices are passed on to consumers.

She added that markets see a 93 per cent chance of a 25-basis-point cut by the US Federal Reserve in September: “The White House pressure is mounting, and the September rate cut looks inevitable, come hell or high water.”

Regional indexes were mixed as Japan’s gross domestic product figures beat forecasts, while Chinese economic data fell short of expectations.

Japan’s Nikkei 225 ended 1.7 per cent higher, Shanghai stocks rose 0.8 per cent and South Korea’s Kospi remained flat, while Malaysian shares fell 0.3 per cent and the Hang Seng in Hong Kong slipped 1 per cent.

Australia was the standout. The ASX 200 added 0.7 per cent to make it five record closes in succession, putting the 9,000-point mark within reach.

The gains came despite a middling session on Wall Street, underpinned by reports that said US inflation at the wholesale level came in at 0.9 per cent in July, the largest monthly increase in more than three years. Investors were not rattled and left the three indexes largely unchanged.

The STI here was hit by UOB, which fell 2.8 per cent to $35.34. The other local banks also slipped: DBS Bank shed 1.2 per cent to $49.90 and OCBC Bank edged down 0.1 per cent to $16.90. UOB and DBS went ex-dividend on Aug 15.

The STI’s top performer was Yangzijiang Shipbuilding, which rose 1 per cent to $2.91.

THE BUSINESS TIMES