Singapore stocks extend rally on Wednesday; STI up 0.3%
The blue-chip Straits Times Index (STI) closed 0.3 per cent or 9.96 points higher at 4,057.82. Across the broader market, gainers outnumbered losers 287 to 187, with about 1.2 billion securities worth S$1.2 billion changing hands.
On the STI, UOL was the top gainer, climbing 3.4 per cent or S$0.22 to S$6.61. SGX was the biggest loser, falling 1.2 per cent or S$0.18 to S$15.41.
Regional bourses closed mixed. South Korea's Kospi gained 0.6 per cent and Japan's Nikkei 225 rose 0.2 per cent. However, Malaysia's KLCI was down 0.1 per cent and Hong Kong's Hang Seng Index dropped 1.1 per cent.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, noted that hopes of an extension to the current tariff pause were dashed after Trump confirmed the Aug 1 deadline with no further delays. He also slapped a 50 per cent tariff on copper and threatened a 200 per cent tariff on pharmaceuticals overnight.
'Trump is sowing the seeds of higher inflation – and higher debt. To keep debt-to-GDP (gross domestic product) in check, the US would need to post strong growth, which may prove unrealistic,' said Ozkardeskaya.
In this environment, she picked inflation-protecting assets, including stocks of companies that are able to pass on price increases to clients and customers, such as those in consumer staples, utilities and healthcare.
'Homebuilders could also perform well if they can raise home prices faster than input costs rise,' she added.
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