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 lower 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 US Federal Reserve’s interest 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, rising 1.7 per cent or S$0.24 to S$14.03.
The biggest loser was Hongkong Land , which lost 1.6 per cent or US$0.11 to end the day at US$6.65.
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Across the region, major indices were mixed on Thursday. The Kospi was up 1.4 per cent, and the Nikkei 225 rose 1.2 per cent. Meanwhile, Hong Kong’s Hang Seng Index fell 1.4 per cent and the KLCI shed 0.8 per cent.
Wall Street failed to react to the Fed’s 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.
