Singapore stocks rise on positive vibes ahead of Fed decision

SINGAPORE – Regional markets were in two minds on Wednesday but local traders sent shares north amid

optimism that the United States will not hike interest rates

this month.

The positive mood about the overnight decision helped the Straits Times Index (STI) add 0.9 per cent or 28.74 points to 3,218.14, with gainers outnumbering losers 347 to 214 after 1.8 billion shares worth $1.3 billion were traded.

Keppel Corp led the index winners, rising 2.8 per cent to $6.69. Other top gainers included CapitaLand Investment, also ahead 2.8 per cent, and Singapore Airlines (SIA), up 2.7 per cent.

SIA, now on an 11-day winning streak, was also the most active by value with 19.4 million shares worth $146.5 million done.

Meanwhile, ThaiBev ended at the bottom of the STI table, slipping 1.7 per cent to 56.5 cents.

Elsewhere, key indexes in South Korea, Hong Kong and Shanghai fell between 0.1 per cent and 0.7 per cent while the Nikkei 225 in Japan and Australia’s ASX 200 tracked overnight gains on Wall Street as US data showed the inflation rate had slowed by half since last year’s peaks.

That nudged the S&P 500 up 0.7 per cent to a new 2023 high, while the Nasdaq climbed 0.8 per cent and the Dow Jones Industrial Average advanced 0.4 per cent.

Saxo market strategist Charu Chanana noted that US headline inflation slowed, but data on core inflation was still slightly higher than expectations on a year-on-year basis.

She added that the US Federal Reserve would most likely hold rates for its June meeting overnight on Wednesday, but noted that the tone may still lean hawkish.

“There are still reasons for the Fed to hike rates – considering the labour market strength (and) also the easing financial conditions, given the pace of gains in equities,” she said.

“The bigger question is whether we will get the next rate hike in July.“

THE BUSINESS TIMES