@Bonta：$Straits Times Index(STI.SI)$ STI will definitely be affected as we have to take into account the main constituent and weightage of STI. The 3 banks, $DBS GROUP HOLDINGS LTD(D05.SI)$$UNITED OVERSEAS BANK LIMITED(U11.SI)$$OVERSEA-CHINESE BANKING CORP(O39.SI)$ Comprise more than 40% weightage of STI. Sg banks will be affected by us interest rate movements, which a strong CPI indicating strong inflation will likely result in more aggressive hiking of interest rates. SG banks had already increased their interest rates due to US raising their rates, this will eventually lead to greater profits for sg banks, provided recession if and when it comes is under control and loan defaults doesnt get out of control. The other major constituents of STI are Reits & developers, who are also sensitive to interest rates movement. Raising interest rateswill result in higher borrowing costs, which will be negative for them, unless they have some other way of financing or they had already locked in long term loans, or they have provision to raise their prices. My opinion is that short term, STI will mirror us markets due to the initial shock effect. However, STI will likely stabilise and continue its own movement up after a few days. [Helpless] Let's see what happens. Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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