SG Morning Highlights: New ministerial roundtable will enable Singapore, India to boost ties across many fronts: DPM Wong

Advancers / Decliners is 36 to 88, with 50.70 million securities worth S$67.38 million changing hands.

The Federal Reserve delivered its third straight interest rate increase of three-quarters of a percentage point on Wednesday and signaled a high likelihood of at least one more move of that size this year, with the US central bank's chief vowing that officials would not let up in their battle to contain inflation.

The Fed raised its target interest rate to a range of 3.00 per cent to 3.25 per cent – the highest level since 2008 – and new projections showed the policy rate rising to between 4.25 per cent to 4.50 per cent by the end of this year before topping out at 4.50 per cent to 4.75 per cent in 2023.

Fed Chair Jerome Powell said US central bank officials are "strongly resolved" to bring down inflation from the highest levels in four decades and "will keep at it until the job is done," a process he repeated would not come without pain.

The new high-level roundtable between Singapore and India will enable both countries to strengthen their relationship across many fronts and find mutual benefits by working together, Deputy Prime Minister Lawrence Wong said on Tuesday (Sep 20).

Both sides have agreed on several new areas of cooperation, including food and energy security, green technology particularly green hydrogen, digital connectivity and skills development, he noted.

"We look forward to the India-Singapore Ministerial Roundtable as a new regular platform for both sides to meet on an ongoing basis to coordinate and oversee these new areas of cooperation," said Wong, who is also Finance Minister.

Cryptocurrencies came under pressure on Thursday (Sep 22) after the Federal Reserve delivered another big interest-rate hike and warned of economic pain from the aggressive policy tightening still to come.

Bitcoin, the largest token, fell as much as 4 per cent and came perilously close to dropping below US$18,000, in touching distance of levels last seen in 2020. Second-biggest coin Ether continued to underperform, shedding up to 7.2 per cent.

The Fed's determination to raise rates to levels that hammer inflation at the cost of sliding asset prices sent a chill across global markets. Shorter maturity Treasury yields jumped while longer tenor rates fell, deepening a bond curve inversion seen as a harbinger of recession.

Two South-east Asian central banks will likely add to the flurry of global tightening on Thursday (Sep 22), as policymakers in Indonesia and the Philippines seek to ease price and currency pressures.

The majority of economists in a Bloomberg survey expect Bank Indonesia to raise its benchmark interest rate by 25 basis points to a 2-year high of 4 per cent. Bangko Sentral ng Pilipinas (BSP) is seen to deliver a half-point hike to take its policy rate to 4.25 per cent, its highest since August 2019.

Central bankers in the 2 nations have signalled a readiness to act to quell inflation, which eased slightly in August but remains well above their 2-4 per cent target bands. Both expect inflation to accelerate further in the coming months amid food shortages in the Philippines and higher fuel prices in Indonesia.

About 75 per cent of the structural works for Singapore's largest train and bus depot have been completed, and the facility is slated to be ready in 2025.

The Land Transport Authority (LTA) on Tuesday gave an update on the East Coast Integrated Depot in Changi, which is said to be first in the world to have three train depots and a bus depot located within one site.

Works on the depot are progressing well, said LTA, adding that concreting and architectural works are ongoing.

The mainboard-listed inflight caterer and ground handler called for a trading halt earlier in the day following a Bloomberg report, based on sources, of a potential acquisition for as much as US$3 billion.

SATS has sounded out financing for the potential purchase of Worldwide Flight Services from its private equity owner Cerberus Capital Management, the report said.

The freehold properties, Loyal Residence Ayase (Ayase) and Medical Rehabilitation Home Bon Séjour Komaki (Komaki), have a combined net property yield of 5.2 per cent.

The acquisitions will be fully funded by debt and are expected to be DPU (distribution per unit) accretive.

In a filing late on Wednesday (Sep 21), the real estate investment trust (Reit) manager estimates this to represent an 11.8 per cent discount to the properties' average appraised value.

It intends to finance the acquisition through a combination of bank borrowings as well as a proposed sponsor subscription of units in DHLT amounting to 1.25 billion yen. The subscription's minimum issue price of S$0.77 per unit represents a premium of 14.9 per cent to DHLT's closing price as at Sep 20, 2022.