LOCAL traders on Thursday (May 23) threw caution, pertaining specifically to persistent inflation concerns raised in the Federal Reserve’s May meeting minutes, to the wind, capitalising on opportunities in the stock market.
Singapore’s Ministry of Trade and Industry on Thursday announced that it was standing by its official full-year growth forecast for 2024 at a range of 1 to 3 per cent, against a resilient external demand outlook and expectations. This came as the city-state’s gross domestic product for the first quarter came in at 2.7 per cent, unchanged from April’s advance estimate.
The benchmark Straits Times Index (STI) advanced 0.4 per cent or 14.72 points to close at 3,322.62. Across the broader market, gainers beat decliners 312 to 286, after 1.4 billion securities worth a collective S$1.3 billion changed hands.
However, regional markets were mixed. The Nikkei 225 added 1.3 per cent and the Bursa Malaysia KLCI gained 0.4 per cent. On the flipside, the Hang Seng Index lost 1.7 per cent, the Kospi slipped 0.1 per cent and the ASX 200 fell 0.5 per cent.
UOB senior economist Alvin Liew said in a note the latest minutes from the Federal Reserve “continued to drill home the message” that rates may stay elevated for longer until it has gained greater confidence that inflation is moving sustainably towards the 2 per cent mark.
Liew said UOB is still expecting two interest rate cuts this year, but acknowledged that the risk “continues to be tilted towards the Fed delaying cuts even further”.
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Jardine Matheson Holdings : J36 0% was the top STI decliner by value, slipping 1.7 per cent or US$0.66 to US$38.45.
The trio of local banks were among the top constituent gainers for the day. UOB : U11 0%came out tops, rising 1.1 per cent or S$0.32 to S$30.55. DBS : D05 0%rose 0.5 per cent or S$0.17 to S$35.85, while OCBC : O39 0%gained 0.8 per cent or S$0.11 to S$14.49.
