STI edges down 0.1%, going against regional trend; Hongkong Land is top gainer

SINGAPORE - The Straits Times Index (STI) inched lower on Sept 15, going against regional indexes.

The STI closed down 0.1 per cent or 5.82 points to 4,338.42.

Across the broader market, advancers outnumbered decliners 319 to 240 after 1.7 billion shares worth $1.4 billion changed hands.

Hongkong Land was the top gainer on the STI, closing up 3 per cent or 19 US cents at US$6.61.

The biggest loser was Singtel, which ended down 0.9 per cent or four cents at $4.30.

The trio of local banks closed lower on Sept 15, as the market prices in a rate cut by the US Federal Reserve.

DBS Bank closed down 0.8 per cent at $51.40, UOB dropped 0.1 per cent to $35.26, while OCBC Bank closed 0.2 per cent lower at $16.82.

Across the region, major indexes closed higher.

South Korea’s Kospi advanced 0.4 per cent and Hong Kong’s Hang Seng Index increased 0.2 per cent.

The recent string of weak US employment data means it is almost certain the Fed will cut rates by 25 basis points (bps) after its policy meeting ends on Sept 18, said Mr Vasu Menon, managing director of investment strategy at OCBC.

The rate cut is largely anticipated and discounted, and should not come as a surprise to the markets.

How the Fed will telegraph its intentions in dealing with concerns about stagflation will be closely analysed.

It is still unclear if the Fed will remain cautious or will signal for two more 25 bps cuts in 2025 to ward off weakness in the labour market.

“With an abundance of liquidity on the sidelines and in the absence of a recession, Fed rate cuts could prove to be a tailwind for markets as history has often shown,” said Mr Menon.

THE BUSINESS TIMES