SINGAPORE stocks ceded some of the gains that they made this week as investors appeared to take profit on Friday (Sep 20).
The Straits Times Index (STI) fell 0.2 per cent or 8.42 points to 3,624.76.
Across the broader market, gainers beat losers 294 to 274 after 1.7 billion securities worth S$2.3 billion changed hands.
On the STI, DBS was the top gainer, rising 1.3 per cent or S$0.50 to S$39.
Its local banking peers were also in the black. OCBC gained 0.1 per cent or S$0.01 to S$15.47, while UOB rose 0.6 per cent or S$0.21 to S$32.94.
Meanwhile, Mapletree Pan Asia Commercial Trust was at the bottom of the table. It fell 4 per cent or S$0.06 to S$1.45.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The local market bucked the regional trend as most Asian markets ended in the black. South Korea’s Kospi gained 0.5 per cent, while Hong Kong’s Hang Seng Index rose 1.4 per cent and Japan’s Nikkei 225 climbed 1.5 per cent.
IG market strategist Yeap Jun Rong said that investors appear to have digested the US Federal Reserve’s reassurances for a soft landing, as well as its “decisive pivot” to support the labour market.
“It seems that bears may have a hard time standing in the way, apart from tapping on the sell-the-news narrative and weak seasonality, which are less significant amid the broader macro picture,” he said.
Furthermore, he said that lower rates from the US Fed can support global demand for the region’s trade-oriented economies and offer more policy flexibility for Asian central banks. A weakened US dollar could also serve as an added tailwind, he added.
In China, he noted that investors may be hoping for further stimulus from the authorities as the country’s 5 per cent growth target seems out of reach.
“However, as with past lessons, any disappointment in the scale of policy support may still eventually see gains fizzle,” he said.
