Singapore stocks reverse losses in midst of cautious sentiment

Local stocks clawed back some losses from the early part of the week yesterday but the general mood was one of caution ahead of upcoming decisions on United States interest rates.

The wary sentiment did manage to send the Straits Times Index (STI) up 0.73 per cent or 23.81 points to end at 3,271.57. Gainers beat losers 263 to 190, with 1.21 billion shares worth $1.08 billion changing hands.

Agribusiness group Wilmar International was the top gainer among the index's constituents, adding 2.4 per cent to end at $4.27.

CapitaLand Integrated Commercial Trust was at the other end of the spectrum, shedding 1 per cent to $1.98. The counter had been on a decline since the real estate investment trust's manager said late on Monday that it is divesting the JCube mall for $340 million.

The local banks gained: OCBC climbed 1.65 per cent to $12.35, UOB rose 0.98 per cent to $30.02 and DBS climbed 0.31 per cent to $35.31.

Asian equities closed mixed.

Japan's Nikkei index ended down 0.44 per cent, dragged by tech heavyweights as their US peers slumped overnight on fears over the Federal Reserve's imminent rate hike and escalating US-Russia tensions centred on Ukraine.

South Korea's benchmark Kospi fell for the fourth straight session, shedding 0.41 per cent. Hong Kong's Hang Seng finished 0.19 per cent higher while the Shanghai Composite edged up 0.66 per cent.

Closer to home, the Kuala Lumpur Composite was up 0.45 per cent while the Jakarta Composite climbed 0.5 per cent.

IG market strategist Yeap Jun Rong said some investors may be staying on the sidelines ahead of the Fed meeting held earlier today. "Guidance from the Fed regarding ... tightening will be key in driving market performance (in the) near term," he said. "Barring steps towards the more hawkish end, markets may see a relief rally ahead."