Singapore Market ends softer

The Singapore stock market finished session marginally lower on Tuesday, 21 February 2023, as investors weighed the prospect that central banks will have to tighten policy settings more than expected to tame inflation. Also weighing sentiments was latest geopolitical developments.

At closing bell, the Straits Times Index (STI) index declined 1.89 points, or 0.06%, to 3,306.86 after trading between 3,298.30 and 3,315.86. Volume was 1.63 billion shares worth S$781.41 million changed hands. There were 241 gainers and 240 decliners.

The top performing stock in Straits Times Index constituents was Mapletree Logistics Trust which rose 1.19% to S$1.69, while the bottom performing stock was Singapore Airport Terminal Services, falling 3.85% to S$2.75.

Risk sentiments across the Asian markets turned bearish as renewed worries that US Fed to go for the interest rate hike in upcoming FOMC meeting this week after the strong US economic data announced last week.

The market is now pricing U.S. interest rates to peak at 5.30% in July and remain above 5% by the end of the year, moving away from expectations of deeper rate cuts this year.

Investor focus is firmly on the release on Wednesday of the minutes of the Fed's latest meeting when it raised interest rates by 25 basis points.

Also weighing sentiments was latest geopolitical developments. U.S. President Joe Biden made an unannounced visit to Kyiv ahead of the one-year anniversary of Russia's invasion of Ukraine amid mounting concerns over China's stand on Russia and Ukraine. U.S. Secretary of State Antony Blinken warned China of consequences should it provide material support to Russia and North Korea fired more missiles.

Back to home, local banks were lower. United Overseas Bank fell 0.07% to S$30.65 and DBS Group Holdings fell 0.17% to S$34.86, while Oversea-Chinese Banking Corp was down 0.08% at S$13.04.

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