Singapore stocks fall as Fed holds firm; STI down 0.7%

[SINGAPORE] Singapore stocks ended lower on Thursday (Mar 19), as the US Federal Reserve held interest rates steady overnight.

The benchmark Straits Times Index (STI) lost 0.7 per cent or 34.56 points to finish at 4,967.61. Meanwhile, the iEdge Singapore Next 50 Index gained 1.4 per cent or 19.90 points to 1,477.66.

Sembcorp Industries led the gainers on Singapore’s blue-chip index, rising 1 per cent or S$0.06 to S$6.16.

The worst performer among the STI constituents was DFI Retail Group , which fell 5.1 per cent or US$0.24 to US$4.46 after trading ex-dividend.

The three local banks ended mixed on Thursday. OCBC advanced 0.2 per cent or S$0.05 to S$21.50, while DBS finished 0.5 per cent or S$0.29 lower at S$57.47 and UOB declined 0.1 per cent or S$0.05 to S$37.16.

Across the broader market, gainers trailed losers 181 to 427, after 1.9 billion securities worth S$2.5 billion changed hands.

Key regional indices finished lower. Hong Kong’s Hang Seng Index lost 2 per cent; Japan’s Nikkei 225 index fell 3.4 per cent; South Korea’s Kospi was down 2.7 per cent; and the FTSE Bursa Malaysia KLCI dropped 0.5 per cent.

Ipek Ozkardeskaya, senior analyst at Swissquote, said that the Fed’s decision to hold interest rates, along with its accompanying statements, were “perceived as relatively hawkish by markets”.

She also noted that diesel and US petrol prices have risen nearly 40 per cent since the beginning of March.

With the rebounding of oil and gas prices, the early optimism across the stock market has been wiped out, she said.