SINGAPORE stocks ended higher on Monday (Aug 26), after Federal Reserve chair Jerome Powell’s Jackson Hole comments indicated that the US central bank is ready to cut rates in September.
The benchmark Straits Times Index (STI) rose 0.2 per cent or 8.04 points to 3,396.03. Across the broader market, gainers beat losers 350 to 230, with 1.2 billion securities worth S$1.2 billion changing hands.
Real estate investment trusts (Reits) were on a tear on Monday. The largest gainer among the seven on the STI was Mapletree Pan Asia Commercial Trust, which rose 3 per cent or S$0.04 to S$1.36.
It was followed by Mapletree Logistics Trust, which climbed 2.3 per cent or S$0.03 to S$1.36.
Geoff Howie, Singapore Exchange market strategist, said the moves by the STI Reits were “measured” as the gains were aligned with each Reit’s sensitivity to rate developments over the past six months.
“Frasers Centrepoint Trust, which has been the least sensitive to recent rate speculation of the seven STI Reits, saw the least gains of the seven today at 0.4 per cent,” he said. Most other STI Reits gained between 1 and 2 per cent.
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Per Powell’s speech, Howie added: “Further rate cuts post-September will be data-dependent, thus the renewed optimism remains cautious.”
On the index, the top gainer was property developer Hongkong Land, which gained 4.5 per cent or US$0.16 to US$3.71. Yangzijiang Shipbuilding was the top loser, shedding 2.4 per cent or S$0.06 to S$2.46.
The local banks closed mixed. UOB rose 0.6 per cent or S$0.18 to S$30.96, while OCBC climbed 0.3 per cent or S$0.05 to S$14.43. DBS ended at S$35.81, down 0.2 per cent or S$0.08.
Outside Singapore, Asia-Pacific markets were mixed. Hong Kong’s Hang Seng Index ended up 1.1 per cent, while the Bursa Malaysia Kuala Lumpur Composite Index added 0.2 per cent. Japan’s Nikkei 225 was down 0.7 per cent, while South Korea’s Kospi Composite Index slipped 0.1 per cent.
