Singapore shares jump 0.8% on upbeat Wall Street gains
SINGAPORE shares rose on Monday (Jun 27), buoyed by sharp gains in Wall Street last Friday as fears somewhat eased over aggressive rate hikes by central banks given a string of weak macro data out of the US and many parts of the world.
The local bourse’s key Straits Times Index extended last Friday’s gains to finish Monday higher by 25.89 points or 0.83 per cent at 3,137.54.
The rest of the region noted ebullience of sorts as well. Key gauges in China and Hong Kong were up 0.88 per cent and 2.35 per cent respectively. Japan rose 1.43 per cent, Taiwan and South Korea climbed 1.60 per cent and 1.49 per cent respectively while Australia finished 1.93 per cent higher and Malaysia’s key index relatively under performed with marginal gains of 0.10 per cent.
“Markets continue to price that the worst is over for US bond markets and that the end of Fed rate hikes will occur sooner as the economy in the US, and elsewhere, slow sharply in H2 2022,” remarked Oanda senior market analyst, Asia-Pacific, Jeffrey Halley.
A recent slide in commodity prices and an easing in a recent reading of longer-term US consumer inflation expectations (for context, it still stood at a record low) were perceived by investors as positive, as these could reduce the urgency for steeper rate hikes by the US Federal Reserve. Also helping to repair sentiments that were earlier battered by recession fears were remarks from a couple of US central bank officials aimed at alleviating such worries.
IG’s market strategist Yeap Jun Rong said: “The question remains on whether this marks another relief rally for a further leg lower. Overall sentiments may stay fragile, largely because the downward trend for equity indices remains intact, and we have seen previous instances of a single event pertaining to inflation, economic outlook and central banks’ policies bringing back market jitters and reversing dip-buying sentiments.”
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
On the home front, some 1.30 billion units worth S$960.32 million were traded. Advancers outpaced decliners, with 362 counters up and 188, down.
Singtel : Z74 0%was one of the day’s top 10 actively traded counters with over 27 million shares done. The counter rose S$0.020 or 0.78 per cent to S$2.60. The mainboard-listed telco quashed a news report in The Australian that it was mulling to list its Australian subsidiary, Optus. Describing the report as “highly speculative”, Singtel said it has no plans to list Optus through an initial public offering at the moment.
Frasers Logistics & Commercial Trust : BUOU 0% (FLCT) saw some action as the units advanced S$0.020 or 1.48 per cent to S$1.37. The trust’s manager announced over the weekend that it has acquired a freehold logistics development in the UK for £101 million (S$171.7 million). The site’s development is expected to be completed in the second half of 2023 and will be leased to Peugeot Motor Company for 15 years with 5-yearly, upward-only rent reviews.
drew coverage by DBS Group Research with a vaunted “buy” rating and a target price of S$2.05 owing to its attractive valuation and high percentage of inventory sold. The shares of the property and retail player rose S$0.020 or 1.14 per cent to S$1.78.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Capital Markets & Currencies
Singapore shares rise at Tuesday’s open tracking global rally; STI up 0.2%
ETF popularity poised to stay as investors flock to diversification, stability
Stocks to watch: FLCT, Paragon Reit, AA Reit, Lendlease Global Reit, Far East Orchard, SIA
Europe: Shares close at highest in a week; Indra surges
US: Stocks rise again, extending rally
Morgan Stanley strategists see inflation as key for path of US stocks