S-Reits lead Singapore stocks higher despite US recession fears
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Across the wider Singapore market, gainers outnumbered losers 298 to 264, with 1.3 billion securities worth $851.9 million traded.
PHOTO: ST FILE
Jude Chan
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SINGAPORE – Concerns over a possible recession in the United States failed to deter local investors from sending the market higher on Thursday.
Real estate investment trusts (Reits) led the charge as the Straits Times Index (STI) climbed 0.3 per cent or 8.42 points to close at 3,294.54, with gainers outnumbering losers 298 to 264 on trade of 1.3 billion shares worth $851.9 million.
IG market analyst Yeap Jun Rong noted that minutes from the US Federal Reserve’s policy meeting in March have shaken risk sentiment.
“The Fed minutes revealed staff projecting a ‘mild recession’ starting later this year due to banking sector stress, which erodes chatter of a soft-landing scenario,” he said.
On the other hand, he added: “The broader trend of moderating inflation allows the Fed to consider a rate pause with more policy flexibility to balance economic risks.”
Mapletree Pan Asia Commercial Trust was the biggest winner on Singapore’s blue-chip index, adding 1.1 per cent to finish at $1.83.
Fellow trust CapitaLand Ascendas Reit was also among the top STI gainers, closing up 1.1 per cent at $2.87.
The bottom of the table was occupied by ground handler and inflight caterer Sats, which shed 1.8 per cent to $2.74.
Thai Beverage was the most actively traded constituent stock. The counter closed down 1.6 per cent at 63.5 cents after 29.8 million shares changed hands.
The local lenders had a mixed day. DBS gained 0.6 per cent to $32.52 and OCBC Bank rose 0.5 per cent to $12.80, but UOB lost 0.2 per cent to end at $29.95.
Most key Asian markets managed to eke out gains after a lukewarm session on Wall Street overnight.
Japan’s Nikkei 225 index, Hong Kong’s Hang Seng and South Korea’s Kospi rose between 0.2 per cent and 0.4 per cent, but Malaysian stocks dipped 0.04 per cent.
Australian shares declined 0.3 per cent, their biggest one-day fall in three weeks, on fears of more rate hikes. THE BUSINESS TIMES
