Singaporean equities recover losses in advance of a Fed rate hike decision

David Smith
Read Time1 Minute, 59 Second
Singapore
  • Singapore shares closed higher on Wednesday
  • Venture Corp, which is set to release its third-quarter scorecard on Friday
  • The Straits Times Index (STI) advanced 10.63 points or 0.3 per cent to 3,141.13 to log its seventh straight day of gains

After spending the entire day in the red following Wall Street’s overnight losses, Singapore shares finished higher on Wednesday due to late buying.

Employment numbers from the world’s largest economy that exceeded expectations diminished expectations of a dovish tilt by the Federal Reserve at its most recent meeting.

The Straits Times Index increased 10.63 points, or 0.3%, to 3,141.13 on its sixth consecutive day of growth. Throughout the majority of the trading day, however, it appeared that the stock’s six-day gain had run out of steam, as investors remained cautious ahead of the Fed’s rate hike decision.

Japan experienced losses while the majority of key regional bourses saw increases, including Hong Kong, China, Taiwan, Malaysia, South Korea, and Australia.

Singapore

Market participants have “heavily depended” on US labor market data to indicate reducing inflationary pressures; but, with the increase in job postings, the anticipation for a pause in aggressive rate hikes in December has diminished. This is because the impressive data could provide the Fed with additional ammo to maintain its hawkish stance, according to a note published by Phillip Securities on Wednesday.

Approximately 1.55 billion equities worth $1.19 billion were exchanged on the local bourse. The ratio of gainers to losers was 271 up to 216 down.

Against a difficult backdrop, Maybank Securities’ top selection in Singapore’s technology sector was Venture Corp, which is scheduled to report its third-quarter results on Friday. The research firm anticipates positive quarterly results for Venture, citing solid client demand, a healthy order book, and resilient margins.

Singapore

Wednesday’s closing price of $16.26 was higher by 6 cents, or 0.4%, compared to Maybank’s target price of $19.55 for the stock.

Geo Energy Resources was the fourth most active stock of the day, with over 25 million shares changing hands. The coal miner’s share price increased by $0.01, or 2.5%, to $0.405, in part due to investor interest in the counter following the Nov. 1 revelation by Singapore-listed competitor Golden Energy and Resources (Gear) that it intended to restructure or depart the energy coal industry.

Leave a Reply

Your email address will not be published. Required fields are marked *

Next Post

Washington Commanders owners are examining the possibility of selling their NFL franchise.

The NFL’s Washington Commanders could soon be for sale The team announced the surprising decision on WednesdayThe Commanders are worth an estimated $5.6 billion The owners of the Washington Commanders, Dan and Tanya Snyder, have reportedly recruited Bank of America Securities to “explore potential trades.” The team’s stunning decision to hire […]
Commanders