SINGAPORE: Singapore shares turned earlier losses to end little changed upon Thursday (Sep 22), bucking the sea associated with red in the region plus overnight on Wall Street after the US Federal Reserve raised interest rates and signalled further outdoor hikes ahead.
The Straits Occasions Index (STI) completed at 3, 263. 07, up 0. 04 per cent or 1 . 28 factors, after having fallen as much as 0. 39 per cent in early morning trade. Duds outnumbered gainers 257 to 230, since 1 . 02 billion dollars securities worth S$1. 09 billion changed hands.
“The tilt towards risk-off has dominated early market performance, ” said OCBC’s main economist and head of treasury study and strategy Selena Ling.
Financial stocks were one of the day’s heavily exchanged stocks in terms of value.
All 3 counters trimmed their particular losses towards the end of the trading program with DBS finishing little changed at S$33. 52. OCBC shed 0. 32 per cent, or S$0. 04, in order to S$12. 31, whilst UOB dropped 0. 54 per cent, or S$0. 15, to S$27. 53.
Real estate investment trusts (REITS), which are sensitive in order to interest rate fluctuations provided the impact on produce spreads and funding costs, were blended.
Mapletree Logistics Trust and Suntec REIT declined about 0. 6 percent each, while Ascendas REIT advanced 0. 36 per cent.
Inflight caterer plus ground handler SATS tumbled 5. thirteen per cent, or S$0. 21, to S$3. 88. The organization had on Wed said it was within discussions to acquire air cargo handler Worldwide Flight Services, although no definitive terms or formal lawful documentation have been agreed upon.
In the region, most stock bourses traded in the red, with MSCI’s broadest index of Asia-Pacific shares outside Japan at the lowest since Might 2020.
Japan’s benchmark Nikkei 225 index ended straight down 0. 58 per cent after the Bank associated with Japan said on Thursday it would maintain its ultra-low interest rate and dovish policy guidance .
South Korea’s Kospi index completed down 0. 63 per cent, or fourteen. 9 points, cheaper at 2, 332. 31, after dropping as much as 1 . sixty two per cent in early business. The index noticeable the lowest close given that Jul 15.
In Hong Kong, the particular benchmark Hang Seng Index dived one 61 per cent, or 296. 67 points, to 18, 147. ninety five. Earlier in the day time, the Hong Kong Monetary Authority raised its base rate charged through the right away discount window simply by 75 basis factors. Hong Kong’s monetary policy moves in lock-step with the United states of america as the city’s foreign currency is pegged to the greenback.
Two other central banking institutions in Asia adopted through with price hikes on Thursday – the Bangko Sentral ng Pilipinas announced a well-anticipated hike in its benchmark interest rates simply by half a percentage stage and Bank Indonesia raised the seven-day reverse repurchase rate by twenty five basis points.
The Philippine stock market was last noticed trading 0. 63 per cent lower on Thursday afternoon, whilst Indonesia’s benchmark Jakarta Composite Index edged up 0. 43 per cent.
Meanwhile, the Fed’s headline also sent the united states dollar up to a new two-decade high, reaching new records against currencies such as the dollar, pound and the yen.
The Singapore dollar lost as long as 0. 23 per cent against the greenback heading to 1 . 4203 you would like to its lowest since April 2020 – earlier in the trading day. It has since clawed back to 1 . 4174 per US dollar by late afternoon.
A strong dollar is likely to persist as the Fed continues with its aggressive rate hikes, but monetary policy tightening efforts among most Asian central banks should help to limit the extent of depreciation among regional currencies, said Mr Tai Hui, chief market strategist for Asia Pacific at JP Morgan Asset Management.