Singapore Shares Decline Despite Regional Rally
In a financial landscape dominated by Wall Street’s record-setting performance, local investors in Singapore seem to have their sights set on banking profits from the market’s recent surge. Despite this shift in focus, the Straits Times Index (STI) only saw a slight dip of 0.2 percent, or 8.42 points, to 3,624.76 on September 20. However, gainers managed to outnumber losers with a ratio of 294 to 274, amidst strong trading activity of 1.7 billion securities valued at $2.3 billion.
Key Players in the Market
- DBS emerged as the top gainer in the STI, climbing 1.3 percent to $39. Its banking counterparts, OCBC and UOB, also saw positive movements, with OCBC gaining 0.1 percent to $15.47 and UOB rising 0.6 percent to $32.94.
- On the other end of the spectrum, Mapletree Pan Asia Commercial Trust experienced a 4 percent decline, reaching $1.45 on the STI table.
Regional Market Trends
While the STI displayed a different trajectory, most Asian markets witnessed upward movements following Wall Street’s delayed celebration of the significant interest rate cut on September 18. The S&P 500, Dow Jones Industrial Average, and Nasdaq all reached record highs, with gains of 1.7 percent, 1.3 percent, and 2.5 percent respectively.
Regional Market Performance
- South Korea’s Kospi saw a 0.5 percent increase.
- The Hang Seng in Hong Kong rose by 1.4 percent.
- Japan’s Nikkei 225 climbed 1.5 percent.
- Australian stocks closed at a record high, adding 0.2 percent to their value.
Expert Analysis
According to IG market strategist Yeap Jun Rong, investors have embraced the US Federal Reserve’s commitment to a soft landing and its proactive measures to support the labor market. He believes that the current macroeconomic landscape minimizes the impact of the "sell-the-news" narrative and weak seasonality, making it challenging for bears to disrupt the market momentum.
Lower US interest rates are expected to boost global demand for regional economies and provide Asian central banks with more flexibility. Additionally, a weakened US dollar could further enhance the region’s economic performance.
In conclusion, despite Singapore’s minor setback in the market, the overall regional outlook remains promising, driven by positive market trends and supportive policy measures. Investors can look forward to potential opportunities for growth and stability in the coming months.