SINGAPORE – A global share market rout sparked by interest rate concerns sent the local bourse reeling on Jan 17.

Fears that rates might not be cut as early as anticipated rattled investors on Wall Street overnight and spread to the region, leaving the Straits Times Index (STI) down 42.77 points or 1.3 per cent at 3,142.22.

The only index constituent to close higher was the Singapore Exchange (SGX), which rose 0.1 per cent to $9.64.

Offshore and marine player Seatrium and alcohol maker Emperador were unchanged.

Losers trounced gainers 413 to 173 across the broader market, with 1.2 billion securities worth $1.2 billion changing hands.

The Hang Seng Index in Hong Kong led regional losses, plunging 3.7 per cent. South Korea’s Kospi was down 2.5 per cent and the Shanghai Composite lost 2.1 per cent.

The losses came as European Central Bank and Federal Reserve officials tempered rate-cut expectations.

SPI Asset Management managing partner Stephen Innes noted that the tone set by United States Fed Governor Christopher Waller on Jan 16 has caused a shift in bond markets, indicating that there may not be a swift rate-cutting trajectory as expected.

One of the more notable STI movers was in-flight caterer and ground handler Sats. It was down 0.7 per cent at $2.87. It announced earlier that it had issued US$500 million (S$672 million) worth of senior unsecured notes due 2029 at 4.828 per cent.

The proceeds will be used to refinance part of the group’s €1 billion (S$1.5 billion) bridge loans, saving $8.8 million in interest expenses.

17Live Group has been on a downward trajectory since its business combination with Vertex Technology Acquisition. The livestreaming platform’s counter closed 9.2 per cent lower at $1.18.

It has tumbled from its first trading day post-combination closing price of $3.15 on Dec 8, erasing about 62.5 per cent in market value during this period. THE BUSINESS TIMES