Singapore stocks drop 0.4% as rate rise concerns rattle investors
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CGS-CIMB branded the Singapore market as a “safe harbour” and encouraged investors to stay nimble amid near-term volatility.
ST PHOTO: KUA CHEE SIONG
Tay Peck Gek
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SINGAPORE – Jangling nerves over yet more interest rate rises and trepidation about impending US job numbers kept regional investors a little twitchy on Thursday.
The edgy mood sent some regional markets down including here, where the Straits Times Index (STI) dipped 0.4 per cent, or 12.35 points, to 3,214.51.
Only nine of the 30 STI component stocks managed to close in the black, while 18 headed south. Gainers pipped losers 242 to 240 across the broader market, with 1.8 billion shares worth $813.6 million changing hands.
Regional investors have become somewhat battle-hardened over interest rate rises, but many were still bracing themselves for a hefty 50-basis point hike from the United States Federal Reserve instead of the more modest 25-point lifts that have become the norm of late.
They are also nervously awaiting US non-farm payroll data due later on Friday, which will influence the Fed’s decision.
The uncertainty did not inflict too much damage on Wall Street overnight, with the S&P 500 up 0.1 per cent and the tech-heavy Nasdaq ahead 0.4 per cent, but the Dow Jones Industrial Average index slid 0.2 per cent.
Regional markets were a mixed bag as well. The Hang Seng in Hong Kong fell 0.63 per cent, Shanghai was off 0.22 per cent, but the Nikkei in Tokyo added 0.63 per cent, and Australian shares rose 0.05 per cent. CGS-CIMB branded the Singapore market as a “safe harbour” and encouraged investors to stay nimble amid near-term volatility.
The local banking trio, accounting for a weighting of over 40 per cent of the STI, were down. UOB fell 0.54 per cent to $29.31, OCBC Bank edged 0.08 per cent lower to $12.54, and DBS Group Holdings declined 0.65 per cent to $33.49.
Liquor company Emperador topped the STI performance tally with a 1 per cent gain to 50 cents.
Golden Energy and Resources (Gear) rose 3.4 per cent to 92 cents after the Securities Investors Association (Singapore) said it has asked Gear officials to raise the exit offer “considerably”. THE BUSINESS TIMES
