FX.co ★ STI Falls from Record High on Profit-Taking

Singapore’s equities retreated around midday, with the benchmark Straits Times Index (STI) falling 40 points, or 0.7%, to 5,555 and wiping out gains from the previous two sessions. The decline came as investors took profits after the index notched a record close on Wednesday at 5,595, up 1.2%, driven largely by banking stocks as the earnings season got underway.

Market participants turned more cautious ahead of the release of June inflation figures. Consensus forecasts point to headline inflation rising to 2.0%, its highest level since August 2024, while core inflation is expected to edge up to 1.6%, a three-month high. These projections have reinforced expectations of further monetary tightening, following Singapore’s first policy tightening since 2022, implemented in mid-April 2026.

Sector-wise, communications, electronic technology, and transportation names were the main drags on the index. Notable decliners included Sembcorp (-2.8%), OCBC (-1.9%), Jardine Cycle & Carriage (-1.9%), Jardine Matheson Holdings (-1.4%), and Venture Corp (-1.4%).