SINGAPORE – Singapore stocks started the holiday-shortened week flat on February 13, with attention focused on the latest US inflation data that will shape market expectations for an interest rate cut by the world’s largest central bank.
The Straits Times Index (STI) followed mixed developments on Wall Street overnight, with the Dow Jones Industrial Average hitting a new all-time high ahead of the release of the US January Composite Consumer Price Index. rose 3.57 points or 0.11% to 3,141.87.
The US disinflationary trend is expected to be maintained.
Higher-than-expected inflation could dampen market expectations for rate cuts and accelerate the dollar’s upside, but markets would be happy if it were weaker.
Still, some economists say investors may be too optimistic about the Fed’s potential rate-cutting trajectory.
“If inflation continues to trend well, we believe some rate cuts are possible in the second half of 2024, but the market remains uncertain about the extent of rate cuts in 2024-2025,” DBS Group Research’s economics team said in a note. “There is a possibility that at least 200 bps (basis points) have been factored in.” Too optimistic.
“For that to happen, growth would probably have to slow significantly due to instability in the financial sector. There is no sign of that so far.”
Key indicators in Japan, South Korea and Malaysia finished higher, while Australia bucked the trend. Markets in China, Hong Kong and Taiwan remained closed due to the Lunar New Year holiday.
Local stock exchange sales reached 1.16 billion units and $1.18 billion. Advancing issues outnumbered declining issues by 211 to 154.
Three local banks closed the transaction mixedly. DBS Bank fell 0.2% to $32.49, OCBC Bank was unchanged at $12.95, and UOB rose 0.3% to $28.22.
The most actively traded counters on the day were Cetrium, Thai Beverages and Singtel.
Exciting announcement that ComfortDelGro’s wholly-owned division has acquired the UK-based ground transportation management and accommodation network specialist for £80.2 million (S$136 million) to expand its footprint. I couldn’t summon it. Shares of the ground transportation giant fell 1 cent, or 0.7%, to $1.39.
Straco issued an outlook on February 9, before the Monday trading holiday, that the company was expected to return from a reported net loss in fiscal 2022 to a profit and report a significant net profit in fiscal 2023. The stock jumped 4.5 cents, or nearly 10 percent, to 51 cents.
The tourism facility operator said the strong performance was due to increased revenue from its Chinese attractions in fiscal 2023.
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