Singapore stocks fall amid regional rout; STI down 0.3%
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The Straits Times Index fell 0.3 per cent or 9.86 points to 3,791.70.
PHOTO: ST FILE
Yong Jun Yuan
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SINGAPORE – Stocks in Singapore fell on Jan 13 as investors digested stronger-than-expected US employment numbers, which dimmed expectations of interest rate cuts.
The Straits Times Index (STI) fell 0.3 per cent or 9.86 points to 3,791.7 points. Across the broader market, losers beat gainers 349 to 193, with 949.7 million securities worth $1 billion changing hands.
Regional markets were also a sea of red on Jan 13. Both the South Korean Kospi and Hong Kong’s Hang Seng Index shed 1 per cent, and the Kuala Lumpur Composite Index (KLCI) fell 1.1 per cent.
IG market strategist Yeap Jun Rong said that the greenback strengthened on strong US economic data released on Jan 10, which created an overhang for risk sentiment across Asia. He added that US 10-year Treasury yields rose as strong US labour data and robust services Purchasing Managers’ Index data caused investors to push expectations for Fed rate cuts further into the future.
“Current projections indicate a single rate cut in July 2025, with no additional cuts anticipated through the year end,” he said, adding that yields above 4.5 per cent have historically weighed heavily on risk sentiment.
Furthermore, he noted that US retail sales data, set to be released on Jan 16, could show further consumer resilience, given that the data point has consistently outperformed expectations since June 2023.
On the STI, Singtel was one of just four gainers. It rose 1.6 per cent or five cents to $3.12. Thai Beverage led the index’s losses, falling 2.7 per cent or 1.5 cent to 53.5 cents.
Local banks were also in the red on Jan 13. UOB shed 0.1 per cent or two cents to $36.80, while DBS fell 0.1 per cent or six cents to $44.07, and OCBC declined 0.8 per cent or 13 cents to $16.97. THE BUSINESS TIMES
