Singapore stocks extend rally on Friday; STI up 0.4%

Across the broader market, gainers beat losers 314 to 202, as 1.2 billion securities worth S$1.4 billion change hands

The local bourse finished the week on a cheerful note amid rising expectations of a September rate cut by the US Federal Reserve.

The Straits Times Index (STI) rose 0.4 per cent or 15.92 points to 4,269.70 on Friday (Aug 29). Across the broader market, gainers beat losers 314 to 202, after 1.2 billion securities worth S$1.4 billion changed hands.

Barnabas Gan, group chief economist and head of market research at RHB Bank, noted “new cues” from the Fed’s Jackson Hole Symposium last week, as well as from a recent speech by a central bank governor indicating the heightened possibility of a rate cut.

Gan said: “Our key conviction is for a 25-basis-point rate cut at the upcoming September Federal Open Market Committee meeting, bringing the (fed funds rate) to a range of 4 to 4.25 per cent, from the current 4.25 to 4.5 per cent.”

With rising hopes for a reduction next month, markets’ risk appetites seem to have improved, the economist said, noting an “overweight” rating in equities. “Markets clearly (have become) desensitised to tariff-related risks at this juncture,” he added.

On the STI, Keppel led the gains, rising 3.2 per cent or S$0.27 to S$8.75. Meanwhile, Thai Beverage was the biggest decliner, losing 1.1 per cent or S$0.005 to finish at S$0.46.

The trio of local banks ended mixed. DBS rose 0.4 per cent or S$0.19 to S$50.52, while OCBC was down 0.1 per cent or S$0.01 at S$16.74, and UOB closed 0.3 per cent or S$0.11 lower at S$35.19.

Regional markets closed the day mixed. Both Japan’s Nikkei 225 and South Korea’s Kospi shed 0.3 per cent, while Hong Kong’s Hang Seng Index gained 0.3 per cent.

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