STI Retreats from Record Peak on Profit-Taking

Singapore's equities dropped 14 points, or 0.3%, to 5,455 around noon on Monday as traders took profits after the index hit a record high in the previous session. The broader market tracked a decline in US futures ahead of a busy corporate earnings week. Rising oil prices also pressured sentiment amid escalating tensions in the Middle East, as inflation concerns fueled expectations of further interest rate hikes. Investors also awaited the release of US inflation data later this week for clues on the Fed's monetary policy decision at its upcoming meeting. They were also looking ahead to a slew of Chinese data, including Q2 GDP, industrial production, and retail sales, due later this week. Healthcare, distribution services, consumer durables, and non-energy minerals stocks led the declines. Among the early losers were UOL Group, which plunged 3.1%, followed by DFI Retail Group (-2.7%), Jardine Cycle & Carriage (-2.1%), and City Developments (-2.1%).

Singapore stocks rose 28 points, or 0.5%, to 5,462 in Friday morning trade, advancing for the seventh consecutive session and hitting a fresh peak, tracking a rally on Wall Street overnight driven by renewed strength in chipmaker stocks. Retail, industrial services, utilities, technology, and financial stocks mainly drove the broader index. However, traders awaited Singapore's preliminary Q2 GDP data, due next week, with the market expecting economic growth to ease to 5.3% after expanding 6.0% in the previous quarter, the strongest pace in 1-1/2 years. Investors also awaited the release of a slew of data from China, including Q2 GDP, industrial production, and June trade figures. Among the notable gainers were Yangzijiang Shipbuilding Holdings (5.9%), Keppel (4.4%), City Developments (1.9%), Hongkong Land Holdings (1.8%), and Sembcorp (1.3%). For the week, the index is on track for a 4.2% surge, which would mark its second consecutive weekly advance.

The STI Index fell 20 points, or 0.4%, to 4,939 in morning trade on Thursday, extending losses from the previous session, marking its lowest level since May 9, tracking a decline on Wall Street overnight amid a renewed escalation of tensions in the Middle East, which drove oil prices higher. Concerns over elevated valuations in AI-linked stocks also pressured sentiment. Traders also assessed US inflation, which accelerated to its highest level in three years, reinforcing expectations that the Fed will hold interest rates higher for longer. Retail trade, electronic technology, and energy minerals mainly weighed down the index. However, traders continued to monitor developments in the Middle East conflict after the US military announced it had completed its latest strikes on Iran. Among individual stocks, notable losses included Singapore Technologies Engineering (-1.5%), Venture Corp (-1.5%), Singapore Airlines (-1.3%), City Development (-1.2%), and UOL Group (-1.15%).