SINGAPORE shares returned to the black after data released on Friday (Aug 23) showed moderating inflation in July.
The Straits Times Index (STI) gained 0.4 per cent or 14.41 points to 3,387.99. Across the broader market, gainers beat losers 283 to 238 after 844.2 million securities worth S$918.8 million changed hands.
The Republic’s July headline inflation held steady at 2.4 per cent. The core consumer price index (CPI) recorded the second consecutive month of deceleration at 2.5 per cent, below market forecasts.
“This represents the lowest core CPI reading since February 2022 and should be welcome news to policymakers,” said Selena Ling, chief economist and head of global markets research and strategy at OCBC.
She noted an overall disinflationary trajectory that opens up a window for monetary policy easing in the months ahead, adding that the market should watch for the policy statements in October this year and January 2025.
Ahead of US Federal Reserve chair Jerome Powell’s much-anticipated speech, scheduled at 10 pm Singapore time, regional markets were broadly in the red.
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Japan’s Nikkei 225 climbed 0.4 per cent, while South Korea’s Kospi lost 0.2 per cent. Hong Kong’s Hang Seng shed 0.2 per cent.
Blerina Uruci, chief US economist at T Rowe Price, noted that Powell has been de-emphasising the effectiveness of using neutral interest rates for setting monetary policy in real time.
“His Jackson Hole speech will likely continue in the same vein… I expect he will be less sanguine about the destination of the terminal rate,” said Uruci.
On the STI, Sats was the top gainer, rising 2 per cent, or S$0.07, to S$3.57. Thai Beverage also led the gains, up 1 per cent or S$0.005 at S$0.505.
Seatrium was at the bottom of the table, down 2 per cent, or S$0.03, at S$1.48. City Developments Ltd was the second-biggest loser, down 0.8 per cent or S$0.04 at S$5.20.
