Singapore stocks edge higher after inflation data delivers no surprises

SINGAPORE - Singapore shares ended higher on June 24 after local inflation data released the same day came in largely in line with expectations.

The benchmark Straits Times Index (STI) rose 0.3 per cent or 8.12 points to 3,314.14. Across the broader market, losers beat gainers 273 to 259, with 1.19 billion securities worth $826.64 million changing hands.

Regional markets were broadly down. South Korea’s Kospi shed 0.7 per cent, the Shanghai Composite Index fell 1.2 per cent, while Hong Kong’s Hang Seng Index closed flat. On the other hand, Japan’s Nikkei 225 rose 0.5 per cent.

HSBC Asean economist Liu Yun said that despite there being no big surprises in

Singapore’s consumer price index figures,

the “last mile” of disinflation has proved to be sticky.

“For one, we need to acknowledge some ‘Singapore exceptionalism’, as the Monetary Authority of Singapore-style core inflation includes both food and energy components, which are largely imported and are directly impacted by MAS’ monetary policy,” she said, adding that elevated global food prices are contributing to driving prices higher.

On the STI, ST Engineering was the top gainer, closing 1.5 per cent higher.

Seatrium came in at the bottom of the table, falling 2.6 per cent. Three of the four Jardines on the index followed close behind, with DFI Retail Group dropping 2.1 per cent, Jardine Cycle & Carriage down 1.6 per cent and Hongkong Land falling 1.5 per cent.

THE BUSINESS TIMES