SINGAPORE stocks ended the week lower, as macroeconomic data from both the United States and China caused investors to tread cautiously amid risks of a delay in interest-rate cuts by the US Federal Reserve.
In the US, the personal consumption expenditures price index saw a 0.3 per cent quarter-on-quarter increase in January, which largely aligned with economists’ forecasts. In China, meanwhile, manufacturing activity fell for the fifth consecutive month in February.
In Singapore, the Straits Times Index (STI) fell 0.2 per cent or 6.09 points on Friday (Mar 1) to end the week at 3,135.76. Across the broader market, decliners narrowly beat advancers 278 to 274, after 2.1 billion securities worth S$1.4 billion changed hands.
Other markets in the region closed mostly higher on Friday. The Nikkei 225 climbed 1.9 per cent, the Hang Seng Index rose 0.5 per cent, and the SSE Composite Index added 0.4 per cent. The ASX 200 also gained 0.6 per cent. Bucking the trend, the Bursa Malaysia lost 0.9 per cent.
SPI Asset Management’s managing partner Stephen Innes said that despite the latest macroeconomic data, traders continue to focus on the broader bullish sentiment – especially in sectors associated with artificial intelligence, which continues to drive the sustained upward trajectory of major market indices.
“All in all, at the end of the day, it seems that investors were lathered in relief – especially those who were concerned that inflation would accelerate further, potentially leading the Fed to delay rate hikes for an extended period or, worse, to initiate rate increases again,” he added.
Jardine Matheson Holdings was the biggest loser on the STI, shedding 3.4 per cent or US$1.42 to close at US$40.49.
Two of the three lenders – UOB and DBS – were the top two gainers of the day. UOB increased 0.9 per cent or S$0.24 to S$28.19, while DBS gained 0.7 per cent or S$0.22 to close at S$33.55. OCBC rose by a more muted 0.1 per cent or S$0.01 to finish at S$12.99.
