SINGAPORE - Singapore stocks closed higher on March 26, amid mixed trading in the region.
The Straits Times Index (STI) rose 1.1 per cent or 35.23 points to close at 3,233.33. Across the broader market, advancers outnumbered decliners 333 to 210, with 1.9 billion securities worth $1.3 billion changing hands.
The biggest gainer on the STI was Seatrium, which rose 3.9 per cent or $0.003 to $0.081. It was also the most active counter, with 953.4 million shares worth $77.4 million traded.
Another top gainer was Keppel, which rose 1.9 per cent or $0.14 to $7.44.
The biggest decliner on the index was DFI Retail Group, which fell by 1.9 per cent or US$0.04 to US$2.07.
Across the region, South Korea’s Kospi climbed 0.7 per cent, after hitting a two-year high earlier in the day. Other indices that closed higher were Hong Kong’s Hang Seng Index, which climbed 0.9 per cent, and the Shanghai Composite Index, which rose 0.2 per cent.
But Japan’s Nikkei 225 and Australia’s ASX 200 fell 0.04 per cent and 0.4 per cent respectively.
In a note on March 26, Mr Vasu Menon, managing director of investment strategy at OCBC, said investors are slowly coming to terms with the possibility that the US Federal Reserve may not cut rates any time soon.
Mr Menon said this recalibration will cause greater market volatility in the short term.
However, it may not derail markets in the medium term, provided the economy slows down while avoiding a hard landing, inflation cools further and the Fed cuts rates progressively over the next three years.
“Historically, such a backdrop has been positive for risk assets like equities and high yield bonds in the medium term,” said Mr Menon. THE BUSINESS TIMES
