[singapore] Stocks on the Singapore bourse ended higher on Wednesday (Mar 19), following a mixed performance in other Asian markets, as investors awaited the US Federal Reserve’s interest rate decision later today.
Market sentiment was dampened by tech-led losses on Wall Street, escalating geopolitical tensions in Ukraine and the Middle East, and growing concerns over the Apr 2 deadline for new tariffs from President Donald Trump’s administration.
Such geopolitical tensions are seen as the biggest downside risk to Singapore’s economic outlook; private-sector economists have maintained a median growth forecast of 2.6 per cent for 2025, and 3.8 per cent growth expected in the first quarter, indicated a quarterly survey released by the Monetary Authority of Singapore on Wednesday.
The benchmark Straits Times Index (STI) advanced 13.34 points or 0.3 per cent to close at 3,908.31.
The biggest decliner on the index was offshore and marine specialist Seatrium, which slid 2.3 per cent or S$0.05 to S$2.13.
The top gainer was ST Engineering. The counter rose 3 per cent or S$0.19 to S$6.57.
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This came after the engineering group announced plans on Mar 18 to pay out a third of its year-on-year increase in net profit as incremental dividends under a new dividend policy. It will take effect in the financial year ending December 2026 and onwards.
Meanwhile, the trio of local banks ended in the black. DBS rose 0.4 per cent or S$0.17 to S$45.20; UOB was up 0.4 per cent or S$0.15 at S$37.50; and OCBC gained 0.1 per cent or S$0.02 to close at S$16.88.
Across the broader market, gainers outnumbered losers 250 to 233, as 1.1 billion shares worth S$1.3 billion changed hands.
Elsewhere in the region, key indices ended mixed. The Nikkei 225 slipped 0.3 per cent and the Bursa Malaysia Kuala Lumpur Composite Index fell 0.7 per cent.
Meanwhile, South Korea’s Kospi added 0.6 per cent, while the Hang Seng Index gained 0.1 per cent.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said the overall market mood has been souring due to factors such as the tariff war, high tech-valuations, rotation trade, uncertain Fed outlook and recent geopolitical developments.
“If Nvidia’s AI (artificial intelligence) news couldn’t (whet) investors’ appetite, it means that the correction is poised to extend deeper,” she said, pointing to a potential market downturn as Nvidia’s stock fell even after unveiling new AI products at its annual conference.
While the Fed is expected to maintain its rates, Ozkardeskaya noted that the committee will update its dot plot, growth and inflation projections, as well as provide a hint regarding where policymakers are planning to put pressure in the changing economic landscape.
“A dovish stance could help slow the equity sell-off and give a minor rebound to equities and the US dollar, while a cautious stance could send the S&P 500 back into the correction territory – meaning lower by 10 per cent or more from its February peak – and extend the scope for deeper losses for both US equities and the US dollar,” she added.
