STI falls 0.3% on Sept 18
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The STI continued to slide on Sept 18, closing at 4,312.62, down 0.3% or 11.16 points.
ST PHOTO: LIM YAOHUI
Benjamin Cher
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SINGAPORE – The Straits Times Index (STI) closed lower on Sept 18, as regional indexes ended the day mixed.
The STI dipped 0.3 per cent, or 11.16 points, to 4,312.62 points.
Across the broader market, decliners outnumbered advancers 322 to 233 after 2.4 billion shares worth $1.4 billion changed hands.
The trio of local banks closed lower after the US Federal Reserve rate cut. DBS Bank was down 0.5 per cent, or 24 cents, to $51.23. UOB dipped 0.1 per cent, or two cents, to $34.80; and OCBC fell 0.6 per cent, or 10 cents, to $16.56.
Venture was the top gainer on the STI, closing up 1.7 per cent, or 24 cents, at $14.03.
The biggest loser was Hongkong Land, closing down 1.6 per cent, or 11 US cents, at US$6.65.
Across the region, major indexes were mixed on Sept 18, with the Kospi up 1.4 per cent and the Nikkei 225 higher by 1.2 per cent.
Hong Kong’s Hang Seng Index closed down 1.4 per cent and the Kuala Lumpur Composite Index ended lower by 0.8 per cent.
Wall Street failed to react to the rate cut with exuberance, as it was in line with market expectations, said Mr Vasu Menon, managing director of investment strategy at OCBC. There is some uncertainty in the Fed’s rate trajectory for 2025, as the dot plot showed wide disparity.
It is coupled with the uncertainty over the next Fed chairman who could potentially compromise the independence of the US central bank by tilting the balance of power in favour of US President Donald Trump.
“Nevertheless, for investors who are prepared to take a medium-term view, there is still a case to stay invested, given that Fed rate cuts in the absence of a recession and an abundance of liquidity have proven to be positive for equity markets,” said Mr Menon. THE BUSINESS TIMES
