Singapore stocks retreat amid uncertainty over rate cut outlook, STI down 0.5%
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STI lost 0.5 per cent or 14.43 points to 3,184.99, with only six out of the 30-stock blue-chip gauge closing higher.
PHOTO: ST FILE
Tay Peck Gek
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SINGAPORE - Shares in Singapore pulled back in tandem with most key regional bourses, taking the cue from European markets’ declines and lower US stock futures.
Wall Street was closed for a public holiday on Jan 15.
Investors are wondering if they have been overly enthusiastic about central banks’ early rate cuts, as officials have been pushing back against such bets. Although inflation is falling, there are fears that tensions in the Middle East could escalate and the rising freight rates stemming from diversions from the Red Sea might push prices of consumer goods higher.
The Straits Times Index (STI) lost 0.5 per cent or 14.43 points to 3,184.99, with only six out of the 30-stock blue-chip gauge closing higher. Fifteen index counters ended lower while nine were unchanged.
Across the broader market, decliners beat gainers 330 to 224, with 1.07 billion securities worth $795.26 million changing hands.
The trio of local banks all closed lower. DBS Bank fell 1 per cent to $32.34, UOB slipped 0.7 per cent to $28.20, and OCBC Bank lost 0.5 per cent to end at $12.87.
Shares of China-based electric vehicle maker Nio closed within a whisker of their 52-week low at US$7.06 (S$9.46) after dropping 1.5 per cent.
Samudera Shipping, another transportation stock, has been on an upward trajectory since the Red Sea crisis heightened in December. Its shares rose 5.5 per cent to $0.765 on Jan 16. Carriers’ shares have benefited from diversions from the Red Sea amid rebel attacks that have sent freight rates soaring. THE BUSINESS TIMES
