STI dips 0.1% as regional central banks hold rates steady

SINGAPORE – Local shares inched down on June 20, partly in response to news that regional central banks are maintaining benchmark lending rates.

The prospect of higher rates for longer deflated investor sentiment and sent the Straits Times Index (STI) down 0.1 per cent or four points to 3,300. Losers pipped gainers 295 to 254 on modest trade of one billion securities worth $901 million.

Markets across the region were in the doldrums with no leads coming from Wall Street, which was closed for a public holiday.

Japan’s Nikkei rose 0.2 per cent, the Kospi in Seoul added 0.4 per cent and Indonesia’s IDX Composite ended 1.4 per cent higher. Australian shares finished flat amid quiet trading while Hong Kong’s Hang Seng fell 0.5 per cent.

The biggest gainer on the STI was offshore and marine company Seatrium, which rose 3.3 per cent to $1.55.

The gains came after the company announced that it had settled its arbitration case with drilling contractor Awilco in relation to a rig construction contract.

Infrastructure company Keppel recorded the STI’s biggest drop, falling 1.7 per cent to $6.50.

Telco player Singtel was the most actively traded counter by volume, with 43.9 million shares worth $115.4 million transacted. The stock rose 1.2 per cent to close at $2.63.

Wall Street futures, which were still being traded on the public holiday, pointed to a subdued opening for the three key indexes at the next session but continuing investor zeal over artificial intelligence and resilient economic growth that is underpinning robust corporate earnings promise to keep markets on the boil, say analysts.

The S&P 500 racked up its 31st record close this year on June 18 while the tech-focused Nasdaq closed at its 20th all-time high.

Unlike their Asia-Pacific peers, investors in the United States are confident about an impending interest rate cut, with most money betting the Federal Reserve will make a move in September. THE BUSINESS TIMES