STI rises 0.4% after Fed pauses interest rate cuts
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The STI closed 20.69 points up at 4,930.03. Only three of the index’s 30 constituents finished the day lower.
ST PHOTO: AZMI ATHNI
Tay Peck Gek
- STI rose 0.4% to 4,930.03 after the US Federal Reserve held interest rates steady, following three consecutive cuts in 2025.
- Sembcorp Industries led STI gains, up 3.5% after Sembcorp Power agreed to supply Micron with 150MW for AI demand.
- DBS neared $60 but closed at $59.79, up 0.4%; gainers narrowly beat decliners in the broader market.
AI generated
SINGAPORE - The Straits Times Index (STI) closed higher on Jan 29 after the US Federal Reserve overnight held interest rates unchanged during its first policy gathering of 2026.
The blue-chip barometer closed 0.4 per cent or 20.69 points up at 4,930.03. Only three of the index’s 30 constituents finished the day lower. But the iEdge Singapore Next 50 Index – which tracks the performance of the 50 largest companies listed on the mainboard after the STI stocks – dropped 0.3 per cent or 3.85 points to 1,501.25.
Sembcorp Industries was the STI’s best performer on Jan 29, rising 3.5 per cent or 21 cents to $6.13. This came a day after the group announced that its wholly owned subsidiary, Sembcorp Power, will supply memory chip giant Micron with an additional 150 megawatts of power to support a new Woodlands plant in capturing artificial intelligence demand.
DBS was close to touching the $60 milestone, but did not manage to maintain the momentum; the counter closed at $59.79, up 0.4 per cent or 25 cents.
OCBC rose 0.3 per cent or six cents to $21.35, while UOB fell 0.2 per cent or seven cents to $38.65.
Across the broader market, gainers edged out decliners 289 to 288 after 1.6 billion securities worth $2 billion changed hands.
The Fed’s decision to pause interest rate cuts on Jan 28 came on the back of a solid economy and diminished risks to both inflation and employment. The US central bank had cut rates at three consecutive meetings in 2025.
Mr Vishnu Varathan, head of macro research for Asia ex-Japan at Mizuho Securities in Singapore, said the pause was “universally expected after the back-to-back ‘risk management cuts’ totalling 75 basis points, although the accompanying rhetoric had a more hawkish edge to the underlying easing bias”. THE BUSINESS TIMES
