STI up 0.2% amid mixed trading in region after release of worrying US inflation data

SINGAPORE – Worrying inflation data released in the US overnight failed to prevent local shares from inching north on Feb 13.

The Straits Times Index (STI) gained 7.96 points, or 0.2 per cent, to 3,882.58, with gainers pipping losers 281 to 261 on trade of 1.7 billion securities worth $1.5 billion.

Seatrium led the STI, extending Feb 12’s rally to end 10.9 per cent higher at $2.55.

Investor sentiment lifted after the marine specialist announced on Feb 13 that it had inked a deal with BP Exploration & Production to provide a range of services for its Tiber floating production unit.

Thai Beverage was the STI’s biggest loser, down 2.9 per cent at 50 cents.

Regional markets were mixed after the US January inflation data.

The Hang Seng dropped 0.2 per cent and Malaysian shares lost 0.7 per cent, but the Nikkei in Tokyo added 1.28 per cent. The Australian bourse slipped from Feb 12’s all-time highs to close up a modest 0.1 per cent.

Wall Street gave little direction after the inflation data sparked investor fears that persistent price pressures meant interest rates might not fall as expected.

The Dow Jones Industrial Average slipped 0.5 per cent, the S&P 500 retreated 0.3 per cent and the tech-heavy Nasdaq ended flat.

UOB senior economist Alvin Liew noted that the data showed a hotter-than-expected report across all categories, including food, energy and housing.

“We still anticipate headline and core inflation to cool further into 2025 (in part due to base effects),” he said.

“But there are upside price risks, including higher food and energy prices, re-accelerating wage growth pressures, higher housing and reconstruction costs due to the Los Angeles wildfires; and the biggest uncertainty is US President Donald Trump’s immigration and trade tariff policies.

“Our 2025 headline and core inflation forecasts are at 2.5 and 2.6 per cent, respectively, with the balance of risk tilted towards the upside.” THE BUSINESS TIMES