SINGAPORE stocks tracked regional declines on Tuesday (Oct 8), reversing Monday’s gains.
The benchmark Straits Times Index (STI) lost 0.7 per cent or 23.5 points to 3,575.69. Across the broader market, losers outnumbered gainers 449 to 199, after 2.2 billion securities worth S$1.6 billion changed hands.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: “The crumbling dovish Federal Reserve expectations at the wake of a blowout jobs report from the US and the mounting geopolitical tensions in the Middle East gave investors a hard time at the start of this week.”
She expects the US consumer price index (CPI) – due to be released on Thursday – will help traders decide what direction to take.
“If soft enough, Thursday ’s CPI update could eventually help calm the Fed doves nerves and prevent the US dollar from stepping into the medium-term bullish consolidation zone against many majors,” Ozkardeskaya said.
“If not, the no November cut pricing could take off, and that would mean higher yields, a stronger US dollar across the board, weaker other currencies, and some negative pressure on equity valuations as the US indices continue to wait near all-time high levels,” the senior analyst added.
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Key indices mostly ended lower across the region. The Nikkei 225 lost 1 per cent, the Kospi Composite Index was down 0.6 per cent. The Hang Seng Index also fell 9.4 per cent, amid a lack of additional stimulus measures.
Meanwhile, the FTSE Bursa Malaysia KLCI inched up 0.02 per cent.
On the STI, Jardine Matheson was the biggest decliner, falling 3.3 per cent or US$1.32 to US$38.38.
Hongkong Land was the biggest gainer, rising 0.7 per cent or US$0.03 to US$4.15.
The local banking trio ended lower. DBS slid 0.03 per cent or S$0.01 to S$38.35, OCBC fell 0.5 per cent or S$0.07 to S$14.88, and UOB was down 0.3 per cent or S$0.10 to S$31.76.
