The Straits Times Index (STI) kicked off the day strongly, advancing 13.17 points or 0.31% to 4,210.40 as risk appetite improved amid speculation of an imminent US interest rate cut.
Market breadth favoured gainers, with 121 stocks rising against 50 decliners. Turnover remained moderate, with 117.92 million shares traded, valued at S$109.56 million.
Global drivers buoyed trading in Singapore. Weaker-than-expected US non-farm payroll data in July and downward revisions for May and June added to expectations of a Federal Reserve rate cut in September. Futures now indicate a roughly 85% probability of easing, leading to a sharp drop in US Treasury yields and a decline in the dollar. These developments supported regional equities, especially energy-sensitive and export-focused markets.
STI gains followed a broader Asia-Pacific rebound, where sentiment improved after major indices pulled back earlier in the week due to regional trade uncertainty.
Domestically, analysts say sectors sensitive to interest rates—such as REITs, telecommunications and industrial stocks—stand to benefit if US rates decline. Singapore’s banks may face margin pressure but remain structurally resilient given strong balance sheets. Regional liquidity flows into Singapore equities have been strong in anticipation of rate cuts and relative tariff insulation while valuation levels remain attractive.
The outlook remains cautiously optimistic: domestic-themed counters are expected to outperform, while export-reliant and highly rate-sensitive stocks may remain volatile amid ongoing global uncertainty.
