Singapore stocks fall amid mixed regional showing; STI down 1.1%

SINGAPORE – Concerns over more interest rate rises in the United States roiled regional markets yet again on Thursday.

The jittery mood sent the Straits Times Index (STI) down 1.1 per cent or 35.11 points to 3,264.93, although gainers beat losers 276 to 249 after 1.6 billion shares worth $1.4 billion changed hands.

It was much the same elsewhere in the region. Hong Kong’s Hang Seng Index shed 0.4 per cent, while Japan’s Nikkei 225 fell 1.3 per cent. Australian stocks took a hit for a third consecutive day, sliding 0.4 per cent. But South Korea’s Kospi gained 0.9 per cent.

The declines followed another largely negative session overnight on Wall Street with the S&P 500 down 0.2 per cent and the Dow Jones Industrial Average falling 0.3 per cent, although the Nasdaq added a modest 0.1 per cent.

UOB senior economist Alvin Liew wrote on Thursday that the minutes of a US Federal Open Market Committee meeting held in late January suggested the Fed was “not quite near the end of the tightening cycle”, despite improving inflation.

He also noted that while the committee unanimously opted to dial down to a 25 basis-point hike in February, some members did push for a rise of 50 basis points.

He expects two more 25 basis-point hikes to bring the Fed rate to 5.25 per cent by May, with no more increases after that for the year.

Sats was the STI’s top gainer, up 2.9 per cent to $2.80. This came after the company announced a renounceable rights issue of $2.20 a share to raise $798.8 million to partially fund its acquisition of Paris-based Worldwide Flight Services.

Keppel Corp declined 26.4 per cent to $5.40 after it began trading on an ex-distribution basis. Shareholders buying the stock from Thursday onwards will no longer be entitled to the distribution in specie of 19.1 Sembcorp Marine shares for each Keppel share held.

Based on the adjusted closing price of $4.78, Keppel shares rose 12.9 per cent. THE BUSINESS TIMES