STI falls on Thursday, down 0.3%
Decliners outnumber advancers 322 to 233 across the broader market with 2.4 billion shares worth S$1.4 billion changing hands
[SINGAPORE] The Straits Times Index (STI) closed down on Thursday (Sep 18), as regional indices ended the day mixed.
The STI dipped 0.3 per cent or 11.16 points to 4,312.62.
Across the broader market, decliners outnumbered advancers 322 to 233 after 2.4 billion shares worth S$1.4 billion changed hands.
The trio of local banks closed lower after the Fed rate cut. DBS was down 0.5 per cent or S$0.24 to S$51.23. UOB dipped 0.1 per cent or S$0.02 to S$34.80; and OCBC fell 0.6 per cent or S$0.10 to S$16.56.
Venture was the top gainer on the STI, closing up 1.7 per cent or S$0.24 at S$14.03.
The biggest loser was Hongkong Land, closing down 1.6 per cent or US$0.11 at US$6.65.
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Across the region, major indices were mixed on Thursday, the Kospi up 1.4 per cent and the Nikkei 225 up 1.2 per cent. Hong Kong’s Hang Seng Index closed down 1.4 per cent and the KLCI closed down 0.8 per cent.
Wall Street failed to react to the rate cuts with exuberance, as it was in line with market expectations, said Vasu Menon, managing director, investment strategy, OCBC. There is some uncertainty in the Fed’s rate trajectory for 2025, as the dot plot showed a wide level of disparity.
These are coupled with the uncertainty of the next Fed chairman who could potentially compromise the independence of the US central bank by tilting the balance of power in favour of US President Donald Trump.
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“Nevertheless, for investors who are prepared to take a medium-term view, there is still a case to stay invested, given that Fed rate cuts in the absence of a recession and an abundance of liquidity has proven to be positive for equity markets,” said Menon.
