Across the broader market, advancers outnumber decliners 319 to 240 after 1.7 billion shares worth S$1.4 billion change hands
[SINGAPORE] The Straits Times Index (STI) inched lower on Monday (Sep 15), bucking regional indices.
The STI closed down 0.1 per cent or 5.82 points at 4,338.42.
Across the broader market, advancers outnumbered decliners 319 to 240 after 1.7 billion shares worth S$1.4 billion changed hands.
Hongkong Land was the top gainer on the STI, rising 3 per cent or US$0.19 to US$6.61.
The biggest loser was Singtel, which declined 0.9 per cent or S$0.04 to S$4.30.
The trio of local banks closed lower on Monday, as the market priced in a rate cut by the US Federal Reserve. DBS ended down 0.8 per cent or S$0.39 at S$51.40. UOB dropped 0.1 per cent or S$0.04 to S$35.26 and OCBC declined 0.2 per cent or S$0.03 lower to S$16.82.
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Across the region, major indices closed higher. South Korea’s Kospi advanced 0.4 per cent and Hong Kong’s Hang Seng Index increased 0.2 per cent.
The recent string of weak US employment data means that it is almost certain that the Fed will cut rates by 25 basis points (bps) after its policy meeting ends on Thursday, said Vasu Menon, managing director of investment strategy at OCBC. The rate cut is largely anticipated and discounted, and should not come as a surprise to the markets.
How the Fed will telegraph its intentions in dealing with concerns about stagflation will be closely analysed. It is still unclear if the Fed will remain cautious or will signal for two more 25 bps cuts this year to ward off weakness in the labour market.
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“With an abundance of liquidity on the sidelines and in the absence of a recession, Fed rate cuts could prove to be a tailwind for markets as history has often shown,” he added.
