[SINGAPORE] Local stocks ended lower on Thursday (May 8), as investors kept their eyes on tariff deal negotiations after the US central bank unsurprisingly kept interest rates steady.
The benchmark Straits Times Index fell 0.4 per cent or 17.15 points to 3,848.22. Across the broader market, losers outnumbered gainers 262 to 226, after 1.1 billion securities worth S$1.5 billion changed hands.
Leading the declines was Mapletree Logistics Trust, which lost 4.4 per cent or S$0.05 to S$1.08.
Meanwhile, Venture Corporation was the top gainer, rising 0.9 per cent or S$0.10 to S$11.07.
The local banks were mixed. DBS rose 0.8 per cent or S$0.33 to S$43.09, after it reported Q1 results that beat expectations. UOB was also up 0.2 per cent or S$0.06 at S$34.55.
Meanwhile, OCBC fell 0.7 per cent or S$0.11 to S$16.16.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
US Federal Reserve chair Jerome Powell ruled out a pre-emptive rate cut to blunt the impact of tariffs on the US economy.
This means that equity investors cannot expect support from a Fed put until there is greater clarity about ongoing trade negotiations, and until more data is available for the Fed to assess the economic impact of tariffs, said Vasu Menon, managing director for investment strategy at OCBC.
At this juncture, investors are focused on Trump’s trade policies and the impact this will have on the US and global economic outlook, Menon said.
This is likely to be the key driver of the local bourse for now. “Irrespective, Singapore’s stock market is attractively valued, and the local markets should enjoy valuation support,” he added.
Copyright SPH Media. All rights reserved.
