SINGAPORE stocks ended lower on Friday (Oct 11), tracking losses on Wall Street, amid concerns that inflation will remain sticky.
The benchmark Straits Times Index (STI) fell 0.3 per cent or 11.53 points to 3,573.76. Across the broader market, losers outnumbered gainers 189 to 179, after 921.9 million securities worth S$1.1 billion changed hands.
Overnight, the US reported hotter-than-expected inflation figures. The stubborn inflation reignited hawkish chatter in some corners of Wall Street, putting pressure on stocks, said Stephen Innes, managing partner at SPI Asset Management.
But he noted that investors brushed it off. “It seems it’ll take more than a mild inflation hiccup to derail the (Federal Reserve’s) trajectory, at least from where traders are sitting.”
He expects eyes to be on China’s anticipated stimulus announcement on Saturday – any boost to consumer spending will be a green light for long Asia foreign exchange traders, with bullish ripple effects across China and regional stocks and global commodity markets.
“With few clear signals from US markets, Asian traders might find themselves flying solo, waiting for Saturday’s fiscal firepower,” he added.
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Regional markets ended mixed. The Nikkei 225 gained 0.6 per cent and the Hang Seng Index rose 3 per cent, while the FTSE Bursa Malaysia KLCI lost 0.5 per cent and the Kospi Composite Index fell 0.1 per cent.
On the STI, Sats was the biggest decliner, falling 4.2 per cent or S$0.16 to S$3.63.
Meanwhile, Jardine Cycle & Carriage was the biggest gainer, rising 2.2 per cent or S$0.59 to S$27.65.
The local banking trio ended in the red on Friday. DBS fell 0.1 per cent or S$0.05 to S$38.69, OCBC lost 0.3 per cent or S$0.04 to close at S$14.97, while UOB was down 0.3 per cent or S$0.10 at S$31.82.
