Stocks to watch next Thursday amid Fed rate hike expectations

The U.S. Federal Reserve kept interest rates unchanged, but some officials expect at least one 25-basis-point hike this year. Rate hike expectations sparked market volatility, and all three major Wall Street indices closed lower on Wednesday (June 17).

The tech-heavy Nasdaq fell 1.34% to 26,021.66. The S&P 500 slipped 1.21% to 7,420.10. The Dow Jones Industrial Average dropped 0.98% to 51,492.55.

Shares of space exploration company SpaceX tumbled nearly 5%, its first decline in nearly a week since listing.

Most Asian markets ended higher. Singapore's Straits Times Index rose 59.6 points or 1.16% to close at 5,176.46.

Asian stocks appeared set to follow U.S. losses after the Fed signaled further rate hikes might be needed to curb inflation. Futures for Japan, South Korea and Australia pointed to a lower open.

Bob Michele, chief investment officer at J.P. Morgan Asset Management, said half of the Fed committee members expect a rate hike this year, which is a heavy blow to markets, and believes "they are preparing for a rate hike."

Stocks to watch on Thursday (18)

1. Far East Group

Before the market open, the company announced it has increased its stake in Eden Refrigeration Manufacturing (Jiangsu) Co. Ltd by 7.05%, for a total consideration of RMB 4,739,842 (about S$900,000). After the acquisition, the group will hold 91.3% of Eden Refrigeration. Far East Group shares closed flat at S$0.11 on Wednesday.

2. Lum Chang Creations and Lum Chang Holdings

Both applied for a trading halt before the market open, pending news release. Lum Chang Creations shares closed at S$0.83 on Wednesday, unchanged; Lum Chang Holdings rose 0.98% to S$0.515.

3. Centurion

Its subsidiary Centurion Overseas Investments (II) Pte. Ltd. acquired a 25% stake in Australian property developer Fairway Development for A$250,000 (about S$225,000). The remaining 75% is held by Centurion Properties Australia Investments.

Fairway is building a student accommodation with 182 beds in Perth, near the Crawley campus of the University of Western Australia and a shopping center. The student hostel is expected to be completed in Q2 2027 and will operate under the EPIISOD brand. This is Centurion's second student accommodation asset in Australia. Centurion shares closed at S$1.51 on Wednesday, up 1.34%.

4. Shanghai Turbo Enterprises

For the first quarter ended March, revenue surged 63% year-on-year, driven by AI computing centers and industrialization boosting power demand. The company responded to a Singapore Exchange query, saying that the rapid increase in overseas AI computing centers and re-industrialization policies in some developed countries have led to a surge in power demand. Gas turbines provide stable power with short construction periods, making them the preferred power supply for overseas markets. Since Q4 last year, overseas orders have grown significantly, and the company expects overseas business to maintain rapid growth this year. Shanghai Turbo Enterprises shares closed flat at S$0.035 on Wednesday.

5. OceanScape International

Suspended OceanScape International (formerly known as Steng Holdings or V2Y) has appointed Chua Boon Ping as Chief Financial Officer, responsible for the company's accounting and finance work.

According to the company's announcement on the SGX, from April 2013 to January 2023, the 38-year-old Chua Boon Ping held various positions at Giken Sakata, including finance manager, finance department head, and CFO; Giken Sakata is a subsidiary of Catalist-listed GSS Energy.

In May 2023, Chua Boon Ping joined another Catalist-listed company, Eindec Corporation, as CFO. He resigned in April this year and is currently serving his notice period.

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