SINGAPORE – After an impressive winning streak, local shares took a slight dip on September 18, as investors braced themselves for a potential interest rate cut from the U.S. Federal Reserve. The cautious sentiment in the market saw the Straits Times Index (STI) close down by 0.03 percent—or just a single point—settling at 3,592.42. This halted its remarkable seven-day rally.

In a day characterized by uncertainty, decliners outnumbered gainers with 201 stocks falling against 187 rising, resulting in a turnover of 872.3 million shares valued at approximately $1.2 billion across the broader market. Market analyst Yeap Jun Rong from IG noted that remarkably, 27 of the 30 STI constituents had posted positive results over the past month, signaling that the market remains resilient despite the recent slight downturn.

Mr. Yeap pointed out the sustained net inflows into key sectors, including financials, real estate investment trusts (REITs), and telecommunications giant Singtel. “Such consecutive weeks of net institutional inflows are relatively rare and suggest long-term bullish positioning for a more sustained turnaround,” he commented, hinting at potential positive trends ahead.

On this particular trading day, Sembcorp Industries emerged as the top gainer, climbing 2.1 percent to reach $5.30. Conversely, CapitaLand Ascendas REIT faced challenges, dropping 2 percent to $2.91. Interestingly, Cordlife, a private cord blood bank facing its own set of troubles, saw its shares surge 17.7 percent to 17.3 cents, indicating a noteworthy turnaround amidst the overall market dip. A single trade of 222,000 shares at 17.6 cents at 2:20 PM accounted for nearly a third of its trading volume.

Overnight in the U.S., Wall Street also exhibited a subdued performance ahead of the Fed's decision on interest rates. The S&P 500 saw minimal movement, incrementing only 0.03 percent. The Nasdaq managed a slight gain of 0.2 percent, while the Dow Jones Industrial Average struggled, dipping by 0.04 percent.

Regionally, stock indexes showed mixed results; Japan’s Nikkei 225 gained 0.5 percent, whereas the Jakarta Composite and Malaysian shares saw slight declines of 0.03 percent and 0.2 percent, respectively.

As the market navigates these unpredictable waters, investors are left pondering: Will the anticipated interest rate cut bring relief or create further volatility? Make sure to stay tuned, as the financial landscape continues to evolve in the coming weeks!