Singapore stocks snap seven-day winning streak; STI ends flat

SINGAPORE – Local shares dipped slightly on Sept 18 as investors here and elsewhere braced themselves for an expected interest rate cut from the US Federal Reserve.

The wait-and-see stance left the Straits Times Index (STI) 0.03 per cent, or a point, down at 3,592.42 to break its seven-session winning streak. Losers pipped gainers 201 to 187 with 872.3 million shares worth $1.2 billion changing hands across the broader market.

IG market analyst Yeap Jun Rong said on Sept 17 that 27 out of the 30 STI constituents have been in the black over the past month.

Mr Yeap added that there appear to be sustained net inflows into financials, real estate investment trusts and telco Singtel.

“Such consecutive weeks of net institutional inflows are relatively rare, which could suggest some long-term bullish positioning for a more sustained turnaround.”

Sembcorp Industries was the STI’s top gainer, rising 2.1 per cent to $5.30, while CapitaLand Ascendas Reit came in at the bottom of the table, falling 2 per cent to $2.91.

Embattled private cord blood bank Cordlife had a significant rise, gaining 17.7 per cent to 17.3 cents.

ShareInvestor noted that a single trade of 222,000 shares at 17.6 cents at 2.20pm accounted for almost a third of the counter’s trading volume. No married deals were recorded.

Wall Street was subdued overnight to Sept 18, with intense focus on the Fed and just how big a rate cut it will make.

The uncertainty kept markets in a holding pattern. The S&P 500 hardly moved for the second day in a row, adding 0.03 per cent. The Nasdaq advanced 0.2 per cent and the Dow Jones Industrial Average slipped 0.04 per cent.

Regional indexes were mixed: Japan’s Nikkei 225 rose 0.5 per cent, but the Jakarta Composite dipped 0.03 per cent and Malaysian shares declined 0.2 per cent.

Australian stocks closed flat after bouncing from a two-day low to an all-time high in a volatile session.

THE BUSINESS TIMES