Banks Lead Gains, While Broader Market Sees Mixed Performance
Singapore’s stock market ended Wednesday slightly higher as traders digested remarks from US Federal Reserve chairman Jerome Powell regarding inflation trends.
Powell acknowledged progress in cooling inflation in the United States but cautioned that robust economic data might prompt further rate hikes. These mixed signals left market sentiment largely unchanged across the region.
The Straits Times Index (STI) rose by 0.2%, or 7.68 points, closing at 3,388.52. Overall, decliners (274) narrowly outnumbered advancers (269) in the broader market, with a daily trading volume of 1.2 billion securities valued at S$962 million.
Regional markets mostly ended lower. Japan’s Nikkei 225 dropped 0.3%, Hong Kong’s Hang Seng Index slipped 0.1%, and Malaysia’s FTSE Bursa Malaysia KLCI fell 0.4%. Conversely, South Korea’s Kospi gained 1.3%, and Australia’s ASX 200 advanced by 0.4%.
Stephen Innes, managing partner at SPI Asset Management, noted that Powell’s comments offered no significant deviation from the Federal Reserve’s existing strategy. For Asian markets, he emphasised the need for clearer signs of China’s economic recovery before investors could make bolder moves.
In Singapore, banking stocks led the charge. UOB gained 1% (S$0.30) to S$30.84, DBS rose 0.6% (S$0.20) to S$36.19, and OCBC climbed 1% (S$0.13) to S$13.15.
However, some stocks faced sharp declines. Best World International, which resumed trading in November after a lengthy suspension, fell 10.7% (S$0.27) to S$2.26. StarHub also dropped 6.3% (S$0.07) to close at S$1.04, following disappointing second-half results that revealed a 98.4% earnings decline despite increased revenue.
