Singapore stocks close higher ahead of Fed rate decision; STI up 0.3%

SINGAPORE – Local shares inched ahead on March 19 after another downbeat session on Wall Street overnight as investors await news on the trajectory of US interest rates.

The cautious mood left the Straits Times Index (STI) up just 13.34 points or 0.3 per cent to 3,908.31, while in the broader market gainers pipped losers 250 to 233 on trade of 1.1 billion shares worth $1.3 billion.

The STI’s biggest decliner was marine specialist Seatrium, down 2.3 per cent to $2.13, while ST Engineering led the winners, rising 3 per cent to $6.57. This came after the group said it would pay out more of its earnings as incremental dividends. The new policy takes effect in the financial year ending December 2026.

The local banks rose: DBS added 0.4 per cent to $45.20; UOB was up 0.4 per cent at $37.50; and OCBC gained 0.1 per cent to $16.88.

Market sentiment has been dampened by tech-led losses on Wall Street, escalating tensions in Ukraine and the Middle East, and fears over President Donald Trump’s looming tariff deadline.

Tech shares took the biggest hit on Wall Street with the Nasdaq sliding 1.7 per cent, while the S&P 500 declined 1.1 per cent and the Dow Industrials shed 0.6 per cent

Regional indexes were mixed. The Nikkei 225 in Tokyo slipped 0.3 per cent, Malaysia stocks fell 0.7 per cent and the Australian market dropped back into the red after three days of gains.

The Kospi in Seoul bucked the trend, rising 0.6 per cent, as did the Hang Seng in Hong Kong, which advanced 0.1 per cent.

Ms Ipek Ozkardeskaya of Swissquote Bank said the US Fed is expected to maintain its interest rate settings, adding: “A dovish stance could... give a minor rebound to equities and the US dollar, while a cautious stance could send the S&P 500 back into the correction territory... and extend the scope for deeper losses for both US equities and the US dollar.”

THE BUSINESS TIMES