S'pore shares end lower in line with key regional indexes

Singapore shares finished lower yesterday amid broad losses across most major Asian markets, as trading sentiments were battered by the United States Federal Reserve chief's remarks that more rate increases are to be expected, given stubborn inflation.

The key Straits Times Index (STI) slipped 0.84 per cent to 3,222.26.

Elsewhere, key indexes, including those in Japan, Hong Kong, Taiwan and South Korea, finished lower. China and Malaysia bucked the trend with marginal gains.

"This new higher-for-longer interest rate guidance from (Jerome) Powell has effectively put to rest expectations that the US central bank will ease monetary policy soon, or even cut rates in early 2023," said OCBC Bank's executive director of investment strategy Vasu Menon. "It brought markets back to reality and spooked investors, causing a sell-off on Wall Street last Friday."

He added: "Markets may also be headed for greater volatility when fund managers and investors return from their summer holidays at the start of September."

About 1.34 billion units worth $975.18 million were traded on the Singapore bourse as losers outpaced gainers, with 349 counters down and 159 up.

Losses were led by Singapore's banking trio of DBS, OCBC and UOB, as well as Singtel and the Singapore Exchange (SGX).

The market cheered Thomson Medical Group for its sterling second-half report card. The firm's net profit of $41.3 million was nearly seven times that of a year earlier on higher patient load and average bill sizes. The stock gained 1.14 per cent to close at 8.9 cents.

Micro-Mechanics released its "highest-ever" quarterly results for the three months ended June 30, reporting a 23 per cent jump in net profit to $5.9 million from a year before.

The counter of the semiconductor firm advanced 1.29 per cent to close at $3.14.