Market Summary

Singapore shares finished lower on Friday (Oct 7) with the Straits Times Index (STI) falling 5.75 points or 0.2 per cent to 3,145.81. The STI capped a lacklustre week with a gain of just 0.5 per cent as a result of a two-day rally. With the US non-farm payroll data out on Friday night (Singapore time), investors have been staying on the sidelines as the keenly watched economic numbers could have an impact on the Federal Reserve’s hawkish rate hike stance. ComfortDelGro shares closed 0.8 per cent lower at S$1.28, making the counter barely higher than its 52-week low of S$1.27. Mainboard-listed Sembcorp Marine, after its 389.1 million shares changed hands on Friday, became the most traded stock and has been hogging the position every day this week. The counter rose 1.7 per cent to S$0.117 on Friday. The Singapore Exchange noted that there were net institutional inflows of S$20 million into the stock in the first four trading days this week. The broader Singapore market saw 256 losers against 220 gainers, with a turnover of 1.45 billion securities worth a total of S$973.75 million.

Wall Street fell sharply on Friday (Oct 7) following a solid jobs report for September that increased the likelihood the Federal Reserve will barrel ahead with an interest rate hiking campaign many investors fear will push the US economy into a recession. The Labor Department reported the unemployment rate fell to 3.5 per cent, lower than expectations of 3.7 per cent, in an economy that continues to show resilience despite the Fed’s efforts to bring down high inflation by weakening growth. Nonfarm payrolls rose by 263,000 jobs, more than the 250,000 figure economists polled by Reuters had forecast. Money markets raised to 92 per cent the probability of a fourth straight 75 basis-point rate hike when Fed policymakers meet on Nov. 1-2, up from 83.4 per cent before the data. The job gains, lower unemployment rate and continued healthy wage growth point to a labor market Fed officials will likely still see as keeping inflation too high. Next week’s consumer price index will provide a key snapshot of where inflation stands. The Dow Jones Industrial Average closed down 630.15 points, or 2.1 per cent, at 29,296.79, the S&P 500 lost 104.86 points, or 2.8 per cent, to 3,639.66 and the Nasdaq Composite dropped 420.91 points, or 3.8 per cent, to 10,652.41.