SINGAPORE - Singapore stocks closed lower on March 25 after official data showed its headline and core inflation rose more than expected in February.
The Straits Times Index (STI) shed 0.6 per cent or 19.87 points to close at 3,198.10.
Across the broader market, decliners beat advancers 279 to 255, with 1.69 billion securities worth $1.03 billion changing hands.
The biggest gainer on the STI was Yangzijiang Shipbuilding, up 1.1 per cent or two cents at $1.88.
The biggest loser on the index was property developer City Developments, which fell by 1.5 per cent or nine cents to $5.82.
Seatrium shares were the most actively traded by volume for the day. The counter fell 0.1 cent or 1.3 per cent at 7.8 cents, with 741.4 million shares worth $57.7 million traded.
The STI fell on the same day official data released showed that core inflation, which excludes private transport and accommodation costs, rose to 3.6 per cent year on year in February, up from January’s 3.1 per cent. Overall or headline inflation also rose, to 3.4 per cent in February from 2.9 per cent in January. Both numbers climbed more than what analysts forecast in a Reuters survey.
Meanwhile, most regional markets were in the red on March 25. The Nikkei 225 was down 1.2 per cent, and the Hang Seng Index fell 0.2 per cent. The Kospi was down 0.4 per cent, while the ASX 200 bucked the trend to move up 0.5 per cent.
Their showing came after the tech-heavy Nasdaq edged to a fresh record, while the Dow Jones Industrial Average pulled back at March 22’s close.
Mr Paul Chew, head of research at Phillip Securities, said the market was relieved the United States Federal Reserve was not spooked by higher inflation over the past two months. He noted that the US central bank chose to keep interest rates unchanged even as it maintained its intention to cut rates three times in 2024.
“The US economy is just flatlining despite aggressive fiscal spending. Data points such as industrial production, retail sales and purchasing managers’ index are all sluggish,” he added. THE BUSINESS TIMES
