SINGAPORE stocks ended higher amid thin trading on Monday (Dec 30), despite declines across the region.
The Straits Times Index rose 0.6 per cent or 24.1 points to 3,795.73. Across the broader index, gainers beat losers 264 to 206, after 588.2 million securities worth S$676.2 million changed hands.
Sembcorp Industries was the top gainer on the index, gaining 1.7 per cent or S$0.09 to S$5.54.
All three banks also closed in positive territory. OCBC increased 1.1 per cent or S$0.18 to S$16.70. Meanwhile, UOB gained 0.9 per cent or S$0.34 to S$36.36 and DBS rose 0.7 per cent or S$0.30 to S$43.85.
Meanwhile, Thai Beverage was at the bottom of the table, falling 0.9 per cent or S$0.005 to S$0.545.
Across the region, markets fell amid cautious trading.
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Japan’s Nikkei 225 index shed 1 per cent, while Hong Kong’s Hang Seng Index and South Korea’s Kospi each declined 0.2 per cent.
SPI Asset Management managing partner Stephen Innes said that the mood towards the end of the year has moved towards risk mitigation and overshadowed the usual risk-seeking behaviour seen from previous “Santa Rallies”.
“The rise in 10-year US yields, which surged by 40 basis points in December, poses the obvious concern. Interestingly, most of this increase is attributed to the term premium, reflecting compensation for elevated inflation expectations rather than growth prospects,” he noted.
He added that the US Federal Reserve’s December meeting’s most critical insight was its upward revision in core inflation forecasts. This could prompt “serious reconsideration” among policymakers and traders about the scope of monetary easing possible in 2025.
“Add to this volatile mix the unpredictability of US trade policy under the incoming administration, which remains a significant wild card.”
