Banks catapult STI to 6-year high as Singapore stocks extend gains
OCBC hit an all-time record of S$15.23 after rising 0.5% or S$0.08
THE Straits Times Index (STI) hit a six-year high on Wednesday (Jul 10), after the blue-chip gauge surged 33.84 points or 1 per cent to 3,459.93.
Across the broader market, gainers beat decliners 324 to 231, with some 1.2 billion securities valued at S$1.3 billion changing hands.
Glenn Thum, research analyst at Phillip Securities, noted that the bourse’s performance was broad based and the gains were not in any particular sector. “This increase might be due to expectations of good results ahead of the earnings release for all the companies,” he said.
Thum added that higher-for-longer rates have pushed up the three local banks’ share prices, with those lenders making up about 45 per cent of the STI.
DBS charged ahead of its peers, jumping S$0.75 or 2 per cent to S$38.15, slightly lower than its 52-week high of S$38.17.
UOB climbed S$0.23 or 0.7 per cent to S$33.10, while OCBC hit an all-time high of S$15.23 after rising 0.5 per cent or S$0.08.
These counters aside, 20 constituents posted higher prices by the closing bell, led by Thai Beverage’s 3.4 per cent increase to S$0.46.
The STI’s climb tracked the record-breaking showing by two of the three major US indices as they hit fresh records on Tuesday, after Federal Reserve chair Jerome Powell reported “modest” progress in countering inflation ahead of the release of key consumer price index data.
The S&P 500 and Nasdaq Composite Index both rose 0.1 per cent, but the Dow finished 0.1 per cent lower.
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