Singapore shares opened lower on Thursday despite overnight gains on Wall Street, as investors weighed encouraging US inflation data against lingering geopolitical uncertainties.
The Straits Times Index (STI) slipped 13.35 points, or 0.24%, to 5,546.37 as at 9.09am, with losers outnumbering gainers 112 to 60. A total of 105.89 million securities worth S$192.33 million changed hands in early trade.
The softer start came after US equities ended higher overnight, buoyed by cooler-than-expected inflation data and a robust start to the second-quarter earnings season. The Dow Jones Industrial Average gained 0.29%, while the S&P 500 and Nasdaq Composite rose 0.38% and 0.62% respectively, as investors pared expectations of another near-term US Federal Reserve rate hike.
Among the most actively watched blue-chip counters on SGX, DBS traded at S$72.78, UOB stood at S$44.43 and OCBC Bank changed hands at S$28.35. Singtel was quoted at S$4.40, while Genting Singapore traded at S$0.625.
Technology-related counter UMS emerged among the early laggards, falling 10 Singapore cents, or 3.73%, to S$2.58, while AEM traded at S$9.46.
In the broader market, the iEdge Singapore Next 50 Index stood at 1,520.77, while the iEdge S-REIT Index was at 1,053.95 in early trading.
In the derivatives market, MSCI Singapore Index Futures for July were quoted at 522.60, while SGX Nikkei 225 Index Futures for September traded at 66,965. FTSE China A50 Index Futures for July were last at 15,228.
Investor sentiment continues to be supported by signs that US inflation is easing, after both the Consumer Price Index and Producer Price Index came in softer than expected. However, markets remain cautious as escalating tensions in the Middle East continue to cloud the outlook for global inflation and interest rates.
