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Across the broader market, gainers beat losers 372 to 190, with 1.1 billion securities worth S$1.2 billion changing hands
SINGAPORE stocks ended their winning streak on Thursday (Aug 22) as the market has priced expectations for US Federal Reserve rate cuts.
The Straits Times Index (STI) lost 0.01 per cent or 0.18 point to 3,373.58. Across the broader market, gainers beat losers 372 to 190, with 1.1 billion securities worth S$1.2 billion changing hands.
The Fed’s July policy meeting minutes, released before the local bourse opened on Thursday, showed that most members thought a rate cut in September is “appropriate”, while some saw “a plausible case for reducing the target range 25 basis points at this meeting or that they could have supported such a decision”.
Regional markets fluctuated as investors turned cautious awaiting Fed chief Jerome Powell’s speech on Friday, when market participants are hoping he will flag a rate cut.
Hong Kong’s Hang Seng Index rose 1.4 per cent, and Japan’s Nikkei 225 was up 0.7 per cent. Shanghai Stock Exchange Composite Index ended the day down 0.3 per cent.
On the STI, Sats was the biggest loser at S$3.50, down 2.5 per cent or S$0.09, after jumping 11 per cent the day before.
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On the other hand, Seatrium led the gainers, rising 4.9 per cent or S$0.07 to S$1.51.
The trio of local banks were all in the red. DBS lost 0.6 per cent or S$0.23 at S$35.55, while OCBC dropped 0.5 per cent or S$0.07 to S$14.27. Shares of UOB declined 0.4 per cent or S$0.12 to S$30.56.
RHB noted that in a rates downcycle, the focus should be on dividend yields.
“UOB’s preference for capital retention means yields and dividend per share growth are relatively more muted,” said the brokerage, maintaining conservative earnings forecasts for the local bank and a target price of S$32.
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