Singapore stocks extend rally, tracking regional gains; STI up 0.9%

[SINGAPORE] Singapore stocks ended higher on Wednesday (Mar 25), mirroring gains in regional indices.

The benchmark Straits Times Index (STI) rose 0.9 per cent or 42.11 points to finish at 4,904.54.

ST Engineering : S63 +2.04% led the gainers on Singapore’s blue-chip barometer, advancing 2 per cent or S$0.22 to S$10.99. The index’s worst performer, meanwhile, was Keppel DC Reit : AJBU -1.35%, which fell 1.4 per cent or S$0.03 to S$2.19.

The three local banks ended higher. DBS : D05 +0.97% gained 1 per cent or S$0.55 to S$57.18, OCBC : O39 +1.09% rose 1.1 per cent or S$0.23 to S$21.39, and UOB : U11 +0.63% was up 0.6 per cent or S$0.23Across the broader market, gainers beat losers 386 to 185 after 1.8 billion securities worth S$2.1 billion changed hands.

Key regional indices were in positive territory on Wednesday. Hong Kong’s Hang Seng Index gained 1.1 per cent, Japan’s Nikkei 225 rose 2.9 per cent, South Korea’s Kospi was up 1.6 per cent, and the FTSE Bursa Malaysia KLCI advanced 0.5 per cent.

Neil Wilson, investor strategist at Saxo, noted that markets have risen on reports of a 15-point plan by the US for peace with Iran, delivered via Pakistan. at S$36.59.

The iEdge Singapore Next 50 Index rose 0.7 per cent or 9.39 points to 1,440.39.

Frencken Group : E28 +10.26% was the index’s top gainer, rising 10.3 per cent or S$0.20 to finish at S$2.15. First Resources : EB5 -3.68% was the biggest decliner, falling 3.7 per cent or S$0.10 to S$2.62.

Markets are pricing in the possibility of a ceasefire, even if a lasting settlement appears remote.

While the tone from the White House is outwardly positive, there is no assurance that Iran could agree to the plan.

“Either way, the narrative focus for the markets is shifting from the initial inflation shock and energy story to the growth angle as front-end rates stabilise,” said Wilson.

Article Resource: The Business Times