STI falls 0.3% in August

Banks, Singtel, Jardine Group, and Keppel Corp supported the index.

Despite market mayhem due to fears of a more aggressive US interest rate increase, the Straits Times Index (STI) only fell 0.3% in August.

According to the Securities Investors Association (Singapore), the index “held up well” last month with the support of banks, Jardine group, Keppel Corp and Singtel.

Whilst the index only dropped 0.3% for the entire month, SIAS said the effect of “turmoil on Wall Street” was still felt by the STI, particularly last week when it fell 44 points or 1.35% to 3,205.69.

“The pullback on Wall St came as US Federal Reserve Chairman Jerome Powell said at the annual Jackson Hole Symposium that the Fed intends on lifting interest rates aggressively, rather than slowing down the pace of rate hikes," the SIAS said.

"The central bank is prioritizing the fight against inflation, potentially at the expense of economic growth,” the association added.