STI Trades Slightly Lower After MAS Decision

Singapore's stocks fell 17 points, or 0.3%, to 5,571 in morning trade on Monday, after edging up in the previous session, following the Monetary Authority of Singapore (MAS)'s decision to tighten its monetary policy, though core inflation eased in June. Traders were also cautious ahead of the Fed's monetary policy decision and China's PMI data due this week. Caution also prevailed ahead of the release of Singapore's industrial production data for June, after it eased in the previous month. However, a rise in US stock futures ahead of big tech earnings this week and easing oil prices after the US paused strikes on Iran capped the fall. Commercial services, energy minerals, electronic technology, and communications mainly weighed on the index. Among the early losers were Yangzijiang Shipbuilding Holdings (-1.8%), Jardine Matheson Holdings (-1.0%), Wilmar International (-0.8%), Venture Corp (-0.7%), DBS Group Holdings (-0.7%), and Sembcorp Industries (-0.6%).

Singapore's stocks fell 40 points, or 0.7%, to 5,555 around noon, erasing the previous two sessions' gains, as traders took profits after the benchmark index hit a record high a day earlier. The STI reached a new record high, closing at 5,595 on Wednesday, up 1.2%, mainly boosted by the banking sector as the earnings season begins. Traders were cautious ahead of the release of June inflation data, with the market expecting headline inflation to accelerate to 2.0%, the highest since August 2024, while core inflation is expected to rise to 1.6%, the highest in three months, raising expectations of further monetary tightening. Singapore tightened monetary policy for the first time since 2022 in mid-April 2026. Communications, electronic technology, and transportation stocks mainly weighed on the index, with notable losses from Sembcorp (-2.8%), OCBC (-1.9%), Jardine Cycle & Carriage (-1.9%), Jardine Matheson Holdings (-1.4%), and Venture Corp (-1.4%).

Singapore's stocks fell 21 points, or 0.4%, to 5,538 in Thursday morning trade, snapping a ten-session winning streak, as traders took profits after the index hit a new record high a day earlier. Rising oil prices pressured sentiment, as concerns over inflation raised expectations of further interest rate hikes. Disappointing data from China also pressured sentiment after Wednesday's figures showed that the country's economy grew at its slowest pace in 3-1/2 years. Health services led the decline, followed by producer manufacturing, energy minerals, utilities, and consumer non-durables. However, resilient expectations of non-oil export growth capped the fall, with the market expecting exports to increase 30.2% in June, though growth eased from 38.4% in May, driven by a surge in AI-related demand. Among the early losers were Venture Corp. (-1.4%), Yangzijiang Shipbuilding Holdings (-0.4%), United Overseas Bank (-1.4%), Singapore Tech (-1.1%), and Keppel (-1.1%).