Singapore shares dip ahead of Fed decision; STI down 0.3%

[SINGAPORE] Stocks on the local bourse fell on Wednesday (Jun 18), tracking the mixed performance in other Asian markets, as investors awaited the US Federal Reserve's policy decision and release of its updated dot plot.
The benchmark Straits Times Index (STI) lost 0.3 per cent or 9.83 points to close at 3,920.81.
Across the broader market, decliners outnumbered advancers 243 to 212, with 822.1 million securities worth S$905.7 million changing hands.
The biggest gainer on the STI was telco giant Singtel , which rose 1 per cent or S$0.04 to S$3.97. The uptick followed news that its subsidiary Optus Mobile had reached a settlement with the Australian Competition and Consumer Commission, over court proceedings related to alleged sales misconduct.
At the bottom of the index was agribusiness Wilmar International . The counter slid 2.7 per cent or S$0.08 to S$2.93, after Indonesian authorities seized 11.8 trillion rupiah (S$928 million) from its parent company, Wilmar Group, in a palm-oil graft case.
Meanwhile, the trio of local banks ended in the red. DBS fell 0.5 per cent or S$0.23 to S$44.23; UOB was down 0.3 per cent or S$0.12 at S$34.83; and OCBC lost 0.3 per cent or S$0.05 to close at S$16.04.
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Elsewhere in the region, key indices ended mixed as investor sentiment remained cautious ahead of the Fed's policy decision. Japan's Nikkei 225 rose 0.9 per cent and South Korea's Kospi was up 0.7 per cent. The Bursa Malaysia KLCI ended flat, Australia's ASX 200 shed 0.1 per cent, and Hong Kong's Hang Seng slid 1.1 per cent.
The Fed is widely expected to keep interest rates unchanged at its meeting on Wednesday, said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
She noted that the base case remains for two rate cuts this year, with the first unlikely to happen before September, based on Fed funds futures pricing. Ahead of the decision, the probability of a September cut stood at around 63 per cent.
'While the economic projections and dot plot could shift market expectations, rising geopolitical and trade uncertainties mean the Fed's growth and inflation forecasts may lack precision,' she added.
She cautioned that any signals from the dot plot should be taken 'with a grain of salt', as the Fed is likely to emphasise that policy remains appropriately positioned and that future moves will depend on incoming data.

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