STI rises 0.7% ahead of US Fed’s meeting

[SINGAPORE] Singapore stocks rose on Tuesday (Aug 19), as the market awaits the outcome of the US Federal Reserve’s three-day Economic Policy Symposium being held in Jackson Hole in the state of Wyoming from Thursday.

The benchmark Straits Times Index (STI) closed 0.7 per cent or 28.81 points higher at 4,216.19.

Across the broader market, gainers beat losers 269 to 217 as 2.1 billion securities worth S$1.66 billion changed hands.

The top gainer on the STI was Jardine Matheson Holdings (JMH) which advanced 4.2 per cent or US$2.41 to US$59.43.

The trio of local banks ended the day higher. DBS was up 0.5 per cent or S$0.26 at S$49.86, UOB remained flattish, rising only S$0.01 to S$34.85, and OCBC rose 0.5 per cent or S$0.08 to end at S$16.76.

The biggest loser on the index was ST Engineering, which lost 1.8 per cent or S$0.15 to finish at S$7.99. This was the second consecutive day the counter emerged as the biggest loser, despite having announced a 19.7 per cent rise in its H1 earnings last week.

Across Asia, major indices were mostly down. South Korea’s Kospi fell 0.8 per cent, Japan’s Nikkei 225 fell 0.4 per cent, and the Hong Kong’s Hang Seng Index lost 0.2 per cent

The Bursa Malaysia Kuala Lumpur Composite Index gained 0.3 per cent.

Vasu Menon, managing director for investment strategy at OCBC bank, said Fed chairman Jerome Powell is under intense pressure from US President Donald Trump to cut rates.

“Nevertheless, with more US economic numbers due before the next September Fed policy meeting, Powell may signal an openness to cut rates next month if the data in the next few weeks support such a move,” he added.