Singapore stocks end higher ahead of US Fed meeting

SINGAPORE - Stocks on the local bourse ended higher on May 6, ahead of the next US central bank meeting where policymakers are expected to keep interest rates on hold.

The benchmark Straits Times Index (STI) rose 0.2 per cent or 7.34 points to 3,860.41. Across the broader market, gainers outnumbered losers 247 to 243, after 1.18 billion securities worth $988.08 million changed hands.

The top gainer on the STI was Singtel, which rose 1.6 per cent or six cents to $3.87. Yangzijiang Shipbuilding was the biggest decliner for the second day in a row this week, down 2.4 per cent or five cents at $2.06. The counter’s ex-dividend date was May 5.

The local banking trio were mixed. DBS Bank rose 0.3 per cent to $42.99, and OCBC Bank gained 0.2 per cent to $16.24, while UOB was flat at $34.98.

Elsewhere in the region, the Hang Seng Index gained 0.7 per cent, while the FTSE Bursa Malaysia KLCI was down 0.2 per cent.

The US Federal Reserve will likely remain in wait-and-see mode over the near term as it assesses the impact of the tariffs on economic activity, even as President Donald Trump has tried to apply pressure on the Fed to cut rates immediately, said Mr Michael Krautzberger, global chief investment officer for fixed income at AllianzGI.

Mr Krautzberger expects the Fed will keep rates steady at the meeting scheduled for May 6 to May 7, but noted a growing assumption that if current US tariff policy remains broadly intact over the coming months, the Fed will eventually have to respond to any sharp deterioration in US activity.

“The Trump administration’s trade policy has put the Fed in a difficult position and resulted in a high degree of policy uncertainty for financial markets, households and businesses,” he said.

THE BUSINESS TIMES