Singapore shares close higher on Monday as inflation eases; STI up 0.1%
[SINGAPORE] Stocks on the local bourse closed higher on Monday (Aug 25) after the Republic reported that core inflation eased to 0.5 per cent in July, while headline inflation slowed to 0.6 per cent.
The Singapore Department of Statistics said core inflation, which excludes accommodation and private transport, declined due to falling prices of retail and other goods, as well as electricity and gas.
The benchmark Straits Times Index (STI) rose 0.1 per cent or 3.47 points to 4,256.49.
Across the broader market, advancers outnumbered decliners 381 to 188, after 1.8 billion securities worth S$1.9 billion changed hands.
Regional bourses were mostly in positive territory on Monday. Japan’s Nikkei 225 was up 0.4 per cent, Hong Kong’s Hang Seng Index gained 1.9 per cent and South Korea’s Kospi rose 1.3 per cent.
Back home, the STI’s top gainer on Monday was Mapletree Logistics Trust, which climbed 3.4 per cent or S$0.04 to S$1.22.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The biggest decliner, meanwhile, was DBS. The counter fell 1 per cent or S$0.48 to S$50.33.
The other two local banks also ended lower. UOB fell 0.03 per cent or S$0.01 to S$35.39, and OCBC was down 0.4 per cent or S$0.07 at S$16.84.
Monday’s showing came as Singapore’s inflation figures ran contrary to economists’ expectations that the rates would hold steady from June.
In a note, RHB group chief economist Barnabas Gan said the bank is keeping its 2025 full-year headline and core inflation forecasts at 1.2 per cent and 0.9 per cent, respectively.
The Monetary Authority of Singapore and Ministry of Trade and Industry have kept their forecast for both at 0.5 to 1.5 per cent.
“In anticipation of the upcoming MAS policy review in October, our base case is for Singapore to maintain its policy parameters unchanged into year-end,” said Gan.
“However, we do not discount the possibility of the Singapore dollar nominal effective exchange rate slope flattening and/or the band’s width widening from the current perceived ±2 per cent.”
