Singapore stocks eke out slight gains on weak sentiment, STI up 0.1%

Shares in Singapore eked out a modest gain on Jan 31 as wary investors await signals from the Federal Reserve on possible interest rate cuts in the United States.

The cautious mood left the Straits Times Index (STI) up just 0.1 per cent or 2.97 points to 3,153.01, with losers outnumbering gainers 310 to 224 after 1.7 billion shares worth $1.3 billion changed hands.

Key regional indexes were mixed following a mostly positive session on Wall Street, where the Dow Jones Industrial Average hit a new record despite weakness in tech shares.

The Hang Seng in Hong Kong lost 1.4 per cent and the Kospi in Seoul slipped 0.1 per cent, but the Nikkei 225 advanced 0.6 per cent and Malaysian stocks inched up 0.02 per cent.

Australian shares rose 1.1 per cent to a record high after surprisingly good inflation figures sparked expectations of early interest rate cuts.

Investors here were likely focused on the US Fed as they navigate evolving market conditions and anticipate potential shifts in monetary policy, said Mr Stephen Innes, managing partner at SPI Asset Management.

While the Fed is not expected to cut rates in March, the focus is on whether such early rate-cut discussions are being entertained, he noted. “Indeed, it’s poised to be a blockbuster day as Fed chair Jerome Powell has the potential to endorse or push back... ebullient investor sentiment,” Mr Innes said.

Frasers Logistics & Commercial Trust was the STI’s biggest gainer, rising 3.7 per cent to $1.12. The trust leased 128,000 sq m of space across its portfolio in the first quarter, with an occupancy rate of 95.8 per cent, it noted earlier this week.

The STI’s biggest fall was from DFI Retail Group, down 4.8 per cent to US$2. The banks all rose: DBS gained 0.2 per cent to $31.88; OCBC increased 0.6 per cent to $12.89; and UOB was up 0.4 per cent to $28.37.

THE BUSINESS TIMES