Singapore stocks flat amid mixed regional trading; STI up 0.1%

SINGAPORE - The Straits Times Index gained 0.1 per cent to close at 3,324.55 points on Monday, as data showed local inflation rates in March matching economists’ median estimates.

Across the broader market, gainers outnumbered losers 285 to 278, with 1.24 billion securities worth $839.71 million traded.

Credit Suisse’s head of Asia-Pacific research, Ms Kum Soek Ching, said: “With a dimmer economic growth outlook and a peak in bank earnings, we see fewer earnings-led drivers for the market going forward.”

“However, we expect inexpensive valuations and an attractive dividend yield of 4.2 per cent to provide downside support for the Singapore market,” she added.

Furthermore, she expects the consumer staples sector to outperform on defensive growth in a slowing macroeconomic environment, and on inflation protection from decent pricing power.

Data released on Monday showed that both headline and core inflation rates stood at 5.5 per cent and 5 per cent respectively, which were largely in line with economists’ expectations.

Regional markets were mixed. Japan’s Nikkei 225 rose 0.1 per cent, while South Korea’s Kospi fell 0.8 per cent and Hong Kong’s Hang Seng Index declined 0.6 per cent.

Yangzijiang Shipbuilding was the biggest winner on Singapore’s blue-chip index, adding 1.6 per cent to close at $1.25.

Thai Beverage was at the bottom of the table, shedding 1.5 per cent to close at 65 cents.

The three local banks also closed mixed. DBS gained 0.7 per cent to $32.87 and OCBC Bank gained 0.2 per cent to $12.82, while UOB shed 0.4 per cent to $29.58.

Shares of Singapore Exchange-listed iFast Corporation closed up 0.4 per cent at $4.70 on Monday after it announced that its United Kingdom-based subsidiary iFast Global Bank had launched its Digital Personal Banking platform, offering retail customers the ability to open a UK digital bank account online.

THE BUSINESS TIMES