Daily Markets Briefing: STI up 0.09%

The US Fed's interest hike could urge investors to be cautious today.

The Straits Times Index (STI) ended 3.02 or 0.09% higher at 3,239.10.

The FTSE ST Mid Cap Index slipped 0.43% whilst the FTSE Small Cap Index fell 0.67%.

The top active stocks were DBS, which dipped 0.039%, UOB, which rose 0.52%, Singtel, which slipped 0.31%, OCBC, which fell 0.52%, and Genting Sing with a 0.95% advance.

According to OCBC Investment Research, stocks surrendered earlier gains to close lower after the Federal Reserve raised interest rates by 25 basis points, as widely anticipated, and indicated its intent to tighten once more in December.

Three out of eleven sectors in the S&P 500 indices closed higher, led by Consumer Discretionary (0.34%) and Health Care (0.20%) whilst Financials (-1.28%) and Real Estate (-1.15%) led the losses.

"We could see the local bourse trade cautiously today as investors assess the commentary from the Federal Reserve," OCBC Investment Research said.