Singapore stocks end lower as rate hike bets weigh on markets
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Traders are closely watching a US consumer price index report to be released on Tuesday.
PHOTO: BUSINESS TIMES FILE
Anita Gabriel
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SINGAPORE - Singapore shares slipped on Monday, alongside losses across major regional bourses, as recession woes ratcheted up ahead of a week that is likely to be dominated by a “storm of central bank rate hikes”.
The Straits Times Index retreated 6.31 points or 0.2 per cent to 3,239.66, taking the cue from Friday’s losses on Wall Street
Traders are closely watching a US consumer price index report to be released on Tuesday, while the Fed is widely expected to raise rates by 50 basis points on Wednesday at its last meeting for the year.
Mr Stephen Innes, managing partner at SPI Asset Management, said: “Please make no mistake – hiking interest rates into the scenario of a mild recession in Europe and the US with the downdraft from top-down macroeconomic accelerating is generally bad for stocks. Hence, it is challenging to paint a positive market outlook this week.”
ACY Securities chief economist Clifford Bennett said: “When you have a blinkered Federal Reserve aggressively raising rates for the foreseeable future, and make no mistake, 50-point hikes are aggressive, then the economy on Main Street, which is the ultimate bedrock driver of Wall Street, remains in serious trouble way ahead of us and over the horizon.”
He added: “I still see further significant downward market risk through December, and perhaps all of 2023. The economic data continues to paint a picture of a slowing US and global economy, which transpires into a clear and present potential for stocks to again collapse a further 20 per cent.”
On the home front, some 1.23 billion securities worth $977.55 million were traded on Monday. Losers outpaced gainers with 313 counters ending the day down, and 211 counters up.
EC World Reit is set to hold an extraordinary general meeting on Friday for shareholders to approve the divestment of two of the real estate investment trust’s (Reit) properties in China. The counter rose four cents or nearly 9 per cent to 48.5 cents.
RHB Research on Monday issued a note that it has ceased coverage on the Reit in the light of ongoing uncertainties surrounding loan refinancing, divestment completion and difficulty in ascertaining sponsors’ financial health. The house’s last published recommendation on the counter was “neutral” with a target price of 55 cents.
Marco Polo Marine said a week ago that it has inked a memorandum of understanding to explore opportunities in the Japanese offshore wind market, a move which marks its maiden foray into Japan. The stock closed unchanged at 4.3 cents and was the day’s seventh most active counter with 35 million shares changing hands. THE BUSINESS TIMES
