Singapore stocks dip as hopes for early Fed rate cut dim
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The benchmark Straits Times Index fell 0.3 per cent or 8.69 points to 3,322.08.
ST PHOTO: LIM YAOHUI
Yong Jun Yuan
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SINGAPORE - Singapore shares ended lower on June 10 after stronger-than-expected US jobs figures on June 7 hurt market sentiment.
The benchmark Straits Times Index (STI) fell 0.3 per cent or 8.69 points to 3,322.08. Across the broader market, losers beat gainers 239 to 158, with 822 million securities worth $940.49 million changing hands. Regional markets were mixed. Japan’s Nikkei 225 gained 0.9 per cent, while South Korea’s Kospi fell 0.8 per cent.
In a research note on June 10, Maybank Securities head of Singapore research Thilan Wickramasinghe said that while the strong US jobs data dashed hopes of an early Fed interest rate cut, he remains bullish on local markets.
“We have raised the year-end STI target to 3,583 as higher-for-longer interest rates bring Singapore’s defensive and low-gearing characteristics back in favour,” he said.
Mr Wickramasinghe added that the recent first-quarter results season confirms his hypothesis, as market earnings accelerated at the fastest pace since the second quarter of 2023.
“Importantly, nearly a third of our coverage companies delivered earnings ahead of forecasts while downgrades fell. This means market expectations are bottoming out, giving greater clarity on the STI’s earnings growth,” he said.
On the STI, Yangzijiang Shipbuilding was the top performer, rising 2.9 per cent to $2.48. Meanwhile, Hongkong Land came in at the bottom of the table, falling 3.2 per cent to US$3.31.
The trio of banks were mixed. DBS Bank gained 0.3 per cent to $35.63, while UOB slipped 0.1 per cent to $30.73 and OCBC Bank fell 0.3 per cent to $14.23. THE BUSINESS TIMES
