STI advances 0.1% ahead of crucial US inflation data
Singapore shares rose on Tuesday (Dec 13) ahead of a nail-biting inflation data release out of the US and overnight gains on Wall Street.
The key Straits Times Index (STI) advanced 31.62 points or 0.1 percent to 3271.28, alongside regional peers that put up a mixed showing.
Key gauges in China, Taiwan, Malaysia, South Korea and Australia finished lower, while Japan and Hong Kong saw gains.
Traders are hoping that the US key consumer price index (CPI) inflation data for November would be mellow enough for the US Federal Reserve (Fed) to step back on aggressive interest rate hikes given recessionary pressures.
The European Central Bank, the Bank of England, and the Swiss and Norway central banks are also set to make policy decisions this week, which are deemed high-risk events for equities.
“US indices managed to start the week on a positive footing, but trading volume was lighter than usual, which suggests a handful of market watchers on the sidelines.
The Chicago Board Options Exchange’s Volatility Index (VIX) also surged 9.5 percent higher, largely a reflection of immense hedging activities, and some underlying fears heading into the key inflation data,” said Yeap Jun Rong, market analyst at IG Research.
China’s reopening also remains a big theme going into 2023. Hong Kong just announced that the three-day monitoring period for arrivals will be scrapped from Wednesday.
OCBC said that the China reopening story as a whole can help to partially mitigate against global growth concerns, and is supportive of sentiment.
On the home front, turnover came in at 1.1 billion units worth $982.2 million. Gainers outnumbered losers with 275 counters up and 190 down.
Gains in the local bourse were led by Singapore’s banking trio UOB, DBS and OCBC, as well as Singtel and Genting Singapore.
Singapore Airlines said on Monday evening that it will adjust the conversion price of its convertible bonds due 2025, as well as its zero-coupon mandatory convertible bonds due 2030, as a result of its interim dividend in respect of the financial half-year ending September 2022.
The adjusted conversion prices will take effect from Dec 13. The counter rose $0.04 or 0.73 percent to $5.55.
CapitaLand India Trust trustee manager said that the trust is acquiring a freehold site in Ambattur, Chennai, to develop its third data center in India.
The project is estimated to cost some 19.4 billion rupees (S$317.6 million) over the next four to five years, with development of the data center occurring in phases. Units of the trust ended on Tuesday at $1.14, up $0.02 or 1.79 percent.