Singapore stocks extend rally on Aug 29, with STI up 0.4%
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The Straits Times Index rose 0.4 per cent or 15.92 points to 4,269.70 on Aug 29.
ST PHOTO: BRIAN TEO
Mia Pei
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SINGAPORE – The local bourse finished the week on a cheerful note amid rising expectations of a September rate cut by the US Federal Reserve.
The Straits Times Index (STI) rose 0.4 per cent or 15.92 points to 4,269.70 points on Aug 29.
Across the broader market, gainers beat losers 314 to 202, after 1.2 billion securities worth $1.4 billion changed hands.
Mr Barnabas Gan, group chief economist and head of market research at RHB Bank, noted “new cues” from the Fed’s Jackson Hole Symposium last week, as well as from a recent speech by a central bank governor indicating the heightened possibility of a rate cut.
Mr Gan said: “Our key conviction is for a 25-basis-point rate cut at the upcoming September Federal Open Market Committee meeting, bringing the (Fed funds rate) to a range of 4 to 4.25 per cent, from the current 4.25 to 4.5 per cent.”
With rising hopes for a reduction in September, markets’ risk appetites seem to have improved, the economist said, noting an “overweight” rating in equities.
“Markets clearly (have become) desensitised to tariff-related risks at this juncture,” he added.
On the STI, Keppel led the gains, rising 3.2 per cent or 27 cents to $8.75.
Meanwhile, Thai Beverage was the biggest decliner, losing 1.1 per cent or 0.5 cent to finish at 46 cents.
The trio of local banks ended mixed.
DBS Bank rose 0.4 per cent or 19 cents to $50.52, while OCBC Bank was down 0.1 per cent or one cent at $16.74, and UOB closed 0.3 per cent or 11 cents lower at $35.19.
Regional markets closed the day mixed.
Both Japan’s Nikkei 225 and South Korea’s Kospi shed 0.3 per cent, while Hong Kong’s Hang Seng Index gained 0.3 per cent. THE BUSINESS TIMES
