Singapore stocks end higher as Middle East conflict enters third week; STI up 0.6%
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Across the broader market, gainers outnumbered losers 312 to 274, after 1.4 billion securities worth $1.8 billion changed hands.
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Renald Yeo
- Singapore's STI rose 0.6% amid Middle East tensions as investors await the US Federal Reserve's monetary policy decision.
- Top STI gainers included Singapore Exchange (up 2.9%) and local banks like DBS, OCBC and UOB. UOL was the worst performer.
- US Federal Reserve is expected to hold rates steady. Analysts warn Gulf events could push inflation higher (SPI Asset Management).
AI generated
SINGAPORE - Singapore stocks ended higher on March 16, as the conflict in the Middle East entered its third week and investors looked ahead to the US Federal Reserve’s upcoming monetary policy meeting.
The benchmark Straits Times Index (STI) gained 0.6 per cent, or 26.42 points, to close at 4,868.69. The iEdge Singapore Next 50 Index, however, fell 0.5 per cent, or 7.5 points, to 1,436.05.
Within the iEdge Singapore Next 50 Index, First Resources was the top gainer, rising 4.1 per cent to $2.79. Sasseur REIT was the biggest decliner, falling 6.6 per cent to 63.5 cents.
Across the broader market, gainers outnumbered losers 312 to 274, after 1.4 billion securities worth $1.8 billion changed hands.
Key regional indexes were mixed. Hong Kong’s Hang Seng Index gained 1.5 per cent and South Korea’s Kospi rose 1.1 per cent, while Japan’s Nikkei 225 fell 0.1 per cent and Malaysia’s FTSE Bursa Malaysia KLCI slipped 0.1 per cent.
Bourse operator Singapore Exchange led the STI gainers, rising 2.9 per cent, or 53 cents, to close at $18.93.
The three local banks also finished higher. DBS rose 1.2 per cent, or 67 cents, to $55.98; OCBC Bank gained 0.6 per cent, or 12 cents, to $20.75; and UOB added 0.5 per cent, or 19 cents, to $36.35.
UOL was the worst performer among STI constituents, falling 5.2 per cent, or 54 cents, to $9.76.
Property developers City Developments Limited and Hongkong Land also declined 4.8 per cent and 4.1 per cent respectively on March 16, ahead of the US Fed’s interest rate decision on March 18.
Analysts broadly expect the Fed to keep rates unchanged within a range of 3.5 per cent to 3.75 per cent.
“Back in January, the Fed made it clear that the bar for easing required convincing evidence that inflation was trending decisively lower,” wrote Mr Stephen Innes, managing partner of SPI Asset Management, in a March 16 note.
“The events unfolding in the Gulf now threaten to move the inflation compass in the opposite direction.” THE BUSINESS TIMES
