LOCAL shares advanced on Thursday (Feb 29), marking the first time the market booked a gain this week. The rise was, however, a muted one amid the global cautious countdown towards the release of the US Federal Reserve’s preferred inflation gauge – the personal consumption expenditures (PCE).
The benchmark Straits Times Index (STI) rose 0.1 per cent or 2.92 points to finish the trading day at 3,141.85. Across the broader market, advancers narrowly outpaced decliners 282 to 277, after 1.9 billion securities worth S$2.1 billion changed hands.
It was a mixed bag of results for markets across the region, with advancers making fairly small gains. The Nikkei 225 fell 0.1 per cent; the Hang Seng Index lost 0.2 per cent, and the Kospi shed 0.4 per cent. The Bursa advanced 0.4 per cent and the ASX 200 gained 0.5 per cent.
SPI Asset Management’s managing partner Stephen Innes said if PCE figures “come in hotter than expected”, market expectations for the Fed this year could diminish.
“This could lead traders to no longer anticipate three full quarter-point cuts. However, such an adjustment might not be solely influenced by seasonal price pressures in January, where companies often front-load price rises with the hope that consumers will forget about them as the year progresses,” he added.
UOL was the biggest loser on the STI, down 4.2 per cent or S$0.26 to S$5.89. The real estate group earlier this week reported a jump in earnings to S$572.7 million, driven chiefly by gains from its sale of a unit that held Parkroyal on Kitchener Road. The counter was also heavily traded on Thursday.
Keppel and Sembcorp were among the top constituent gainers. Keppel rose 1.7 per cent or S$0.12 to S$7.24, while Sembcorp Industries added 2 per cent or S$0.10 to S$5.10.
