SINGAPORE stocks ended Monday (Jul 29) in positive territory, as investors took stock of a robust US inflation print.
The benchmark Straits Times Index (STI) climbed 0.5 per cent or 17.71 points to 3,444.18. Across the broader market, advancers outnumbered decliners 314 to 264, with 1.2 billion securities worth S$1.1 billion changing hands.
Jonathan Woo, senior research analyst at PhillipCapital, said US macro data last week is likely to reaffirm market expectations of the Federal Reserve holding interest rates in its upcoming meeting.
He noted that the June core personal consumption expenditures index, the Fed’s favoured inflation gauge, was unchanged from May, coming in slightly above expectations at 2.6 per cent.
“We still believe the probability of a Fed cut in September remains low, even as markets are pricing in an 88 per cent chance of a cut,” Woo said. This is as inflation is trending slower than anticipated and the Sep 18 Fed meeting likely being too close to the US presidential election.
On the STI, several real estate investment trusts (Reits) were among the gainers. Mapletree Industrial Trust rose 1.3 per cent or S$0.03 to S$2.30, while CapitaLand Integrated Commercial Trust advanced 1 per cent or S$0.02 to S$2.07.
Mapletree Pan Asia Commercial Trust ended 0.8 per cent or S$0.01 higher at S$1.29.
Two of the three local banks climbed on Monday. UOB gained 0.6 per cent or S$0.20 to S$32.40, while DBS advanced 0.3 per cent or S$0.09 to S$36.33. OCBC was flat at S$14.77.
Regional indices also closed higher. Hong Kong’s Hang Seng Index rose 1.3 per cent, Japan’s Nikkei 225 climbed 2.1 per cent, South Korea’s Kospi Composite Index gained 1.2 per cent, while Bursa Malaysia Kuala Lumpur Composite Index was up 0.7 per cent.
