Singapore stocks rise amid Fed rate-cut hopes; STI up 0.4%

SINGAPORE – Positive inflation data in the US boosted Wall Street overnight and gave local investors the incentive to head back into the market, although the regional response was mixed.

The very real prospect that interest rates will be further trimmed next week in the US helped send the Straits Times Index (STI) up 0.4 per cent or 16.45 points to 3,809.27.

Gainers outnumbered losers 272 to 212 across the broader market, with 963.3 million securities worth $974.7 million changing hands.

Yangzijiang Shipbuilding was STI’s top gainer, rising 2.2 per cent to $2.81 while Sats led the losers, falling 1.6 per cent to $3.66.

The three local banks started the day in the red but turned their fortunes around by the close. DBS gained 0.3 per cent to $43.80, UOB rose 0.4 per cent to $37.25 and OCBC Bank was up 1 per cent to $16.80.

Optimistic US inflation figures – consumer prices ticked higher in November, but no faster than what the market was anticipating – and a tech rally energised Wall Street. The S&P 500 closed 0.8 per cent up, the Nasdaq index added 2 per cent to close above 20,000 points for the first time, but the Dow Jones index fell 0.2 per cent.

Regional markets closed mostly in the black. Malaysian shares lost 0.1 per cent but Hong Kong’s Hang Seng added 1.2 per cent, as did Japan’s Nikkei 225 and the Kospi in South Korea was up 1.6 per cent.

Australian shares slipped 0.3 per cent to a three-week low as hopes of an early rate cut in February faded after strong job numbers.

Meanwhile, analysts here are getting bullish on vegetable and edible oil engineering process company Oiltek. UOB Kay Hian and Lim & Tan Securities issued “buy” calls in light of a strong order book and increasing demand for sustainable aviation fuel. The stock closed up 1 per cent at $1.01. THE BUSINESS TIMES