Singapore shares rise 0.7% even as caution prevails

SINGAPORE shares closed higher for the third consecutive session on Monday, even as caution stayed thick in the air given the high pace of Omicron-led infections and worries over a sooner-than-expected tightening monetary policy.

The key Straits Times Index rose 21.79 points or 0.68 per cent to 3,227.05.

Other major bourses in the region had a mixed showing after key US equity gauges retreated on Friday. Hong Kong, China, Taiwan and Malaysia advanced while South Korea and Australia fell back. Japan was closed for a holiday.

Traders are closely watching the release of US inflation data this week after last Friday's jobs data dump for further indications on the extent of the US Federal Reserve's sense of urgency to normalise rates.

China is also set to release inflation digits. The troubles at China's real estate sector, namely at Evergrande and lately, Modern Land, continued to weigh on sentiments

In a recent report, Citi Research cited headwinds for global equities this year and has forecast growth to slowdown for global earnings per share from 53 per cent last year to just 7 per cent in 2022.

Deutsche Bank Research said it expects 2022 to be the year in which the global economy properly transitions to a post-Covid regime after last year's rebound although "living with Covid" may have become temporarily a little more difficult.

It added: "While Asia's export growth will be slower this year, it will still be much higher than the pre-Covid norm. Moreover, consumption growth will continue to recover in most economies: a healthy rebalancing towards domestic demand.

"Importantly, the outlook for Asian economies has them restoring their traditional growth premium versus the major advanced economies, especially as China's growth momentum strengthens steadily through the course of this year."

On the home front, some 1.29 billion units worth S$1.28 billion were traded in the local bourse. Losers outpaced gainers with 265 counters down and 217 counters up. Singapore's banking stalwarts D05, UOB and O39 - the trio are likely beneficiaries of the expected Fed rate hikes - put up a strong showing.

U11 jumped S$0.87 or 3.08 per cent to S$29.16. RHB Research has maintained a 'buy' on the counter on upbeat prospects for 2022 and cited gradual border re-openings that will result in broad-based improvements in the bank's operations as a key factor.

PH0 slipped S$0.001 or 2.08 per cent to S$0.047. The developer announced that it's associate ECXX Global - a fintech firm - has been granted the Recognised Market Operator (RMO) licence by the Monetary Authority of Singapore (MAS) to operate an organised market for securities and collective investment schemes, relating solely to capital markets products, with effect from Jan 1.