STI Faces Pressure as 4,500-Point Support Give Up on Rate Decision Concerns

The Straits Times Index is encountering headwinds after surrendering nearly 50 points over three consecutive trading sessions, representing a decline of approximately 1.2 percent. Currently hovering around the 4,500-point level, the benchmark is anticipated to open lower as investors brace for fresh weakness ahead of Wednesday’s Federal Reserve monetary policy announcement.

Market Performance and Individual Stock Movements

Monday’s session saw the STI give up 24.28 points, closing at 4,507.08 with a loss of 0.54 percent. The index traded within a range of 4,502.88 to 4,534.44 throughout the day. Weakness was broad-based, with financial institutions, real estate operators and industrial names all contributing to the downside pressure.

Among the most active issues, significant declines were recorded across multiple sectors. CapitaLand Integrated Commercial Trust dropped 1.72 percent, while DFI Retail Group fell 2.20 percent. Yangzijiang Shipbuilding lost 1.17 percent, and Keppel Ltd retreated 1.27 percent. Hongkong Land and SembCorp Industries both sank 1.50 percent respectively. Other notable losers included Comfort DelGro at down 1.39 percent, City Developments declining 0.96 percent, and Oversea-Chinese Banking Corporation retreating 1.00 percent.

CapitaLand Ascendas REIT slumped 0.72 percent, while Mapletree Pan Asia Commercial Trust and UOL Group both skidded 0.70 percent. Keppel DC REIT and SingTel each lost 0.44 percent, with SATS dropping 0.58 percent and DBS Group falling 0.35 percent. Seatrium Limited shed 0.47 percent, United Overseas Bank slipped 0.23 percent, and Mapletree Industrial Trust sank 0.49 percent.

In positive territory, Singapore Technologies Engineering gained 0.24 percent and Venture Corporation climbed 1.14 percent. Wilmar International, Yangzijiang Financial, Genting Singapore, Thai Beverage, CapitaLand Investment, Mapletree Logistics Trust and Frasers Centrepoint Trust remained flat.

Global Context and Rate Decision Expectations

Wall Street’s weakness provided headwinds for regional markets. The Dow Jones Industrial Average dropped 215.67 points or 0.45 percent to finish at 47,739.32, the NASDAQ declined 32.22 points or 0.14 percent to close at 23,545.90, and the S&P 500 fell 23.89 points or 0.35 percent to end at 6,846.51. The pullback reflected profit-taking following the recent rally that saw both the NASDAQ and S&P 500 reach their best closing levels in a month last Friday.

The primary driver of caution is the Federal Reserve’s anticipated interest rate decision, widely expected to deliver another quarter-point reduction. Market participants are closely monitoring for forward guidance regarding potential additional cuts in the coming year. This uncertainty has kept trading activity subdued as investors position ahead of the announcement.

Asian markets are expected to split the difference between mixed European performance and softer U.S. trading, setting up a flat to lower opening for the regional session.

Energy Markets Under Pressure

Crude oil prices declined sharply on Monday amid strengthening U.S. dollar conditions preceding the Fed’s policy decision. West Texas Intermediate crude for January delivery fell $1.28 or 2.13 percent to settle at $58.80 per barrel, reflecting the energy sector’s sensitivity to monetary policy expectations and currency movements.