SINGAPORE stocks ended higher on Tuesday (Jul 23) as the Republic reported inflation figures that slowed more than expected in June.
The benchmark Straits Times Index (STI) rose 0.7 per cent or 23.9 points to 3,461.16. Across the broader market, gainers outnumbered losers 288 to 261, after 989.7 million securities worth S$909.7 million changed hands.
June’s headline inflation was 2.4 per cent – lower than May’s 3.1 per cent and the median forecast of 2.7 per cent in a Bloomberg poll of private-sector economists – due to a decline in private transport costs and lower core inflation.
Core inflation, which excludes accommodation and private transport, stood at 2.9 per cent, down from May’s 3.1 per cent, and below median estimates of 3 per cent.
Selena Ling, chief economist and head of global markets research and strategy at OCBC, noted that inflation risks remain two-sided.
While fresh geopolitical shocks, adverse weather events and renewed transportation disruptions put upward pressure on commodity and shipping costs, any unexpected weakening in the global economy will result in the opposite scenario, Ling said.
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Domestically, a potentially stronger-than-expected labour market could also cause wage growth to re-accelerate, she added.
Elsewhere in the region, key indices were mixed. The Nikkei 225 slipped 0.01 per cent and the Hang Seng Index fell 0.9 per cent.
Meanwhile, the Kospi Composite Index rose 0.4 per cent, while the FTSE Bursa Malaysia KLCI was up 0.5 per cent.
On the STI, Seatrium is the biggest gainer, rising 3.5 per cent or S$0.05 to S$1.50.
Singtel is the biggest loser, falling 1 per cent or S$0.03 to S$3.02.
The local banking trio ended higher. DBS rose 1.5 per cent or S$0.55 to S$36.75, OCBC gained 0.7 per cent or S$0.11 to S$15.16, while UOB was up 0.9 per cent or S$0.29 to S$32.86.
