STI falls 1.1% as caution prevails ahead of US CPI data

Singapore shares failed to hang on to opening gains and finished lower on Monday, as caution prevailed ahead of the release of key United States inflation figures on Tuesday.

The key Straits Times Index fell 35.99 points or 1.1 per cent to 3,324.70. Across the region, most indexes fell, while China’s benchmark bucked the trend.

This followed the biggest weekly decline in the US’ S&P 500 and Nasdaq since December 2022. The upcoming US consumer price index data could provide more clues on the direction of the world’s largest economy and its rate path.

On the home front, Singapore’s full-year gross domestic product was revised lower to 3.6 per cent in 2022 from an advance estimate of 3.8 per cent. This was lower than the growth of 8.9 per cent in 2021.

Economists expect growth to be uneven, with manufacturing and trade-related services in recession; meanwhile, construction and services are set to expand with the recovery in hospitality, aviation and consumer-facing sectors.

In a report published on Monday, Maybank Securities said: “Recession warnings are blaring louder and markets finally seem to be taking notice. In Singapore, reopening tailwinds, a strong Singapore dollar and plateauing rates offer some defensiveness.”

On the broader local bourse, turnover came in at 1.2 billion units worth $1.1 billion. Losers outpaced gainers 306 to 253.

The trio of local banks were among the day’s top decliners. DBS Bank led the pack, falling 2 per cent to $35.32. Earlier on Monday, the lender posted a 69 per cent year-on-year rise in net profit to a record $2.34 billion for its fourth quarter ended Dec 31, 2022.

Thomson Medical Group was Monday’s second-most active counter, rising 5.6 per cent to 7.6 cents after 37 million shares changed hands. The private healthcare provider reported a net profit of $22.8 million for H1 FY2023, an 83 per cent jump from the corresponding period a year ago. THE BUSINESS TIMES