SINGAPORE – Local shares took their cue from losses on Wall Street overnight and declines across the region to head south on Wednesday. The wary mood here and elsewhere stemmed from caution ahead of the United States Federal Reserve’s interest-rate decision.

The local response was a fall of 0.6 per cent or 19.98 points that left the Straits Times Index at 3,262.01.

Losers outpaced gainers 321 to 257 across the wider market after 1.4 billion shares worth $1.1 billion were traded.

Genting Singapore led the STI losers, falling 3.6 per cent to $1.08. The stock, which was trading ex-dividend, saw active trading, with 40 million shares done.

The local banks were also in the red, with UOB falling 0.7 per cent and OCBC slipping 0.2 per cent. DBS slid 2.3 per cent to $32.21 after analysts cut their target prices amid expectations of net interest margins moderating.

Meanwhile, Sembcorp Industries surged 5.5 per cent to $4.57, ending the day as the top STI performer.

Elsewhere, the Kospi in South Korea fell 1 per cent, while Hong Kong’s Hang Seng was down 1.18 per cent following overnight losses on Wall Street, where all three indexes declined by around 1 per cent. Markets in Japan and China were closed for holidays.

Australian shares slid 1 per cent, hitting a four-week low after the shock move on Tuesday to raise interest rates.

“Risk sentiments are back to cautious mood this week,” said IG market analyst Yeap Jun Rong, noting that this came amid lingering fears over the stability of US regional banks, as well as investors looking towards the Fed’s interest-rate decision overnight.

“A 25 basis-point rate hike has been fully priced, so focus will be on how Fed chair Jerome Powell balances between keeping the Fed’s tightening option open and calming nerves around the renewed banking jitters,” he added. THE BUSINESS TIMES