SINGAPORE – Local shares ended on a more upbeat note on Wednesday as traders backed market hopes that the US Federal Reserve could hike rates less aggressively.

The buoyant mood lifted the Straits Times Index by 0.8 per cent, or 24.23 points, to 3,008.38. In the broader market, winners outpaced losers 309 to 191 on trade of 1.4 billion shares worth $1.1 billion.

Singapore Exchange market strategist Geoff Howie said real estate investment trusts (Reits) booked their strongest session since May 2020. The FTSE ST Reit Index was up 3.5 per cent for the day, he noted.

Mr Howie said the strong showing was underpinned by earnings expectations and less hawkish predictions for interest rates in the US by the end of the year.

“Majority expectations (are) now seeing a 50-basis-point hike on Dec 14, rather than a 75-basis-point hike as expectations suggested last week,” he added.

Jardine Matheson Holdings was the biggest advancer on Wednesday, gaining 2.5 per cent to close at US$46.20.

iFast, which was set to announce third-quarter results after market closing, was also among the top gainers. The counter finished the day at $3.82, up 4.7 per cent.

Jardine Cycle & Carriage was the biggest loser, shedding 2.3 per cent to $30.49. Two of the three lenders also fell – DBS lost 0.4 per cent to $32.63, while UOB slid 0.2 per cent to $26.08. OCBC, meanwhile, eked out a 0.3 per cent rise to $11.74.

Sembcorp Marine was the most heavily traded stock for the day, with about 50.7 million shares changing hands. The counter closed at 12 cents, up 0.8 per cent.

Other actively traded counters were Yangzijiang Shipbuilding, Marco Polo Marine and Singtel.

Regional markets headed north as well. Shanghai shares rose 0.8 per cent, the Hang Seng added 1 per cent while the Nikkei in Tokyo advanced 0.7 per cent.

Australian shares hit six-week highs mid-session before slipping a tad to close up 0.2 per cent. THE BUSINESS TIMES