Singapore Stocks Buck Regional Trend, STI Slightly Down
In the world of finance, the local shares in Singapore took a slight dip on September 26, marking their third consecutive day of decline. Despite the shaky mood, gainers outnumbered decliners in the market, showcasing a dynamic trading session.
Key Highlights:
- Straits Times Index (STI) down 0.03% or 1.04 points to 3,582.23
- Gainers outnumbered decliners 428 to 226
- Trade volume: 1.4 billion shares worth $1.8 billion
- DFI Retail Group emerged as STI’s biggest gainer, up 2.6%
- Singtel was the biggest loser, down 2.1%
- Local banks like DBS Bank, OCBC Bank, and UOB continued to slip
Regional Market Performance:
- Major regional indexes rose despite Wall Street’s weaker performance
- Dow Jones Industrial Average fell by 0.7%
- Kospi in Seoul rose by 2.9%
- Hang Seng in Hong Kong jumped by 4.2%
- Australian shares added 1%, nearing a record high
Expert Analysis:
According to Mr. Thilan Wickramasinghe, head of research at Maybank Securities Singapore, the recent US Federal Reserve rate cut is expected to support Singapore market earnings for the second half of 2024. Here are some key insights:
- Tech manufacturing and real estate investment trusts (Reits) may see a floor to downgrades
- Upgrades are likely in gaming, industrials, Internet, and telcos sectors
- The easing cycle initiated by the Fed should ease funding costs for Reits and tech manufacturing, while also boosting the top line
- Lower rates can reduce funding costs and increase margins in the industrials sector
- Tight policy by the Monetary Authority of Singapore is expected to keep the Singapore dollar supported, enhancing market appeal
In conclusion, the financial landscape is ever-evolving, and staying informed about market trends and expert insights is crucial for making informed investment decisions. It is essential for investors to keep a close eye on global economic developments and their impact on local markets to navigate the complexities of the financial world successfully.