STI up 0.1% amid mixed regional performance

SINGAPORE – Another Wall Street sell-off overnight sparked by interest rate concerns failed to deter local investors on Friday.

While the prospect of US interest rates staying higher for longer has sent jitters through global markets, the bourse here was more resilient, with the Straits Times Index (STI) rebounding from early losses to close up 0.1 per cent, or 2.01 points, to 3,204.82, but down 2.3 per cent for the week.

In the broader market, gainers beat decliners 302 to 241, with 1.3 billion shares worth $801 million traded.

Regional markets had a mixed day, with Chinese bourses clocking gains, including a 2.3 per cent surge on Hong Kong’s Hang Seng.

It was less buoyant elsewhere: The Nikkei in Tokyo slid 0.5 per cent, the Kospi in Seoul slipped 0.27 per cent, while the ASX 200 in Australia ended flat, though it was still 2.9 per cent down over the week – its worst performance since late August 2022.

The declines came after heavy falls on Wall Street prompted by fears that those high interest rates will be around for longer than expected. The S&P 500 fell 1.6 per cent, the Nasdaq dropped 1.8 per cent, and the blue-chip Dow Jones Industrial Average slid 1.1 per cent.

The VIX index, which measures stock volatility and is often called the “fear gauge”, rose after hitting its lowest level since 2020 last week, said SPI Asset Management managing partner Stephen Innes.

He noted that the increase in expected volatility over the next few weeks is valid, especially as the October earnings season approaches: “Earnings season jitters are likely compounding the current higher-for-longer sell-off and encouraging folks to pull even more chips off the table.”

Genting Singapore fell 1.2 per cent to 85 cents, making it one of the top STI losers.

The banks were mixed: UOB dipped 0.1 per cent to $28.22, DBS Group Holdings inched up 0.1 per cent to $33.25, while OCBC Bank rose 1 per cent to $12.61. THE BUSINESS TIMES