Singapore shares slide 1.2% after Fed’s hawkish hold
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The STI ended the day with only four of the 30 constituent stocks on the blue-chip gauge closing higher.
PHOTO: ST FILE
Tay Peck Gek
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SINGAPORE – The reluctance of US officials to take their foot off the interest rate pedal rattled global markets on Thursday. Singapore took a sizeable hit with the benchmark Straits Times Index (STI) diving 1.2 per cent or 39.19 points to 3,202.81, with only four of the 30 constituent stocks closing higher.
Losers outgunned gainers 362 to 195, with 1.3 billion shares worth $941.2 million traded.
Singapore took its cue from Wall Street overnight, where shares went south after the Federal Reserve left interest rates unchanged
Tech stocks took the brunt, with Amazon, Apple, Alphabet, Microsoft, Meta and Nvidia all declining, leaving the Nasdaq 1.5 per cent lower. The S&P 500 fell 0.9 per cent, while the Dow Jones Industrial Average got off lightly with a 0.2 per cent dip.
Regional bourses fared no better: The Nikkei in Tokyo was down 1.37 per cent, the Hang Seng in Hong Kong 1.3 per cent, and the Kospi in Seoul 1.75 per cent. Australian shares slid 1.4 per cent to their lowest close in 10 weeks.
Phillip Securities Research analyst Shawn Sng said the US Fed’s stance that rate increases remain on the table has dampened market sentiment.
Yangzijiang Shipbuilding was one STI stock to rise – up 4.2 per cent to $1.74, with a brokerage expecting the China-based company to benefit from higher ship prices and cheaper steel.
Most real estate investment trusts (Reits) closed in the red, led by Manulife US Reit’s 6.4 per cent decrease to 4.4 US cents, a 52-week low. Its unit price has plunged 90 per cent since late 2022.
The banks declined: OCBC Bank slid 1.7 per cent to $12.48; DBS Bank 1.4 per cent to $33.22; and UOB 0.9 per cent to $28.26. THE BUSINESS TIMES
