THE Straits Times Index (STI) ended flat on Thursday (Sep 26), bucking North Asian indices which registered strong gains.
The STI was down 0.03 per cent or 1.04 points at 3,582.23, as some index stocks took a breather following a sharp run-up.
Across the broader market, advancers outnumbered decliners 428 to 226 after 1.4 billion shares worth S$1.8 billion changed hands.
DFI Retail Group saw its fortunes reverse as it became the biggest gainer on the STI after being at the bottom of the table on Wednesday. The group closed up 2.6 per cent or US$0.05 at US$1.99 on Thursday.
Singtel was the biggest loser, down 2.1 per cent or S$0.07 at S$3.22.
The trio of local banks continued to slip, with DBS down 0.2 per cent or S$0.07 at S$38.30 and OCBC falling 0.3 per cent or S$0.04 to S$15.23. UOB was the biggest loser among the banks, declining 0.5 per cent or S$0.16 to S$32.36.
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Across the region, major indices closed higher, with China’s Shanghai Composite rising 3.6 per cent. South Korea’s Kospi was up 2.9 per cent, Hong Kong’s Hang Seng Index jumped 4.2 per cent while Japan’s Nikkei 225 rose 2.8 per cent.
The US Federal Reserve’s rate cut should support Singapore market earnings for the second half of 2024, said Thilan Wickramasinghe, head of research at Maybank Securities Singapore. There could be a floor to the downgrades on tech manufacturing and real estate investment trusts (Reits), while rising trends could drive upgrades for gaming, industrials, Internet and telcos.
“We believe the recent bigger-than-expected Fed cuts, as it begins an easing cycle, should help ease funding costs for Reits and tech manufacturing, while also supporting top line,” said Wickramasinghe.
Lower rates also drive falling funding costs, increasing margins in the industrials sector. An upcycle in offshore and marine, supported by fossil fuel prices and green energy growth, is set to drive order book growth. Singapore’s yield friendly market and resurgence of sectors should support investment rotations.
“A continued tight policy by MAS (Monetary Authority of Singapore) should keep the Singapore dollar supported, raising market appeal,” said Wickramasinghe.
