Singapore stocks edge up 0.3% amid subdued trading across the region

SINGAPORE stocks finished higher on Tuesday (Sep 6) after a day of quiet trade across most of the region as there were few market-moving events with markets in the United States closed for a holiday.

The Straits Times Index (STI) rose 0.3 per cent, or 8.7 points to 3,224.18. Losers outnumbers gainers 247 to 240, with 1.85 billion shares worth S$957.2 million changing hands.

Other key indices in the region had a muted session, with Hong Kong’s Hang Seng index closing slightly lower by 0.1 per cent, while Japan’s Nikkei ended nearly flat, gaining a mere 0.02 per cent.

However, the Shanghai Composite Index jumped 1.4 per cent, and the Shenzhen Composite Index climbed 1.2 per cent after China vowed fresh stimulus measures for the troubled economy.

Among STI constituents, Jardine Cycle & Carriage and Sembcorp Industries were the top 2 gainers on Tuesday.

Jardine Cycle & Carriage’s share price rose 6.3 per cent, or S$2.05 to S$34.43, to recover from its losses on Monday. Close to 830,000 of its shares changed hands.

Sembcorp Industries also saw a 4.5 per cent increase in its share price, or S$0.15 to S$3.48, with about 21.5 million of its securities transacted.

The engineering services company announced late on Monday that its wholly-owned subsidiary, Sembcorp Utilities, has agreed to sell its 100 per cent stake in its India-based coal power unit for 117 billion rupees (S$2.1 billion) to Tanweer Infrastructure.

In a research note on Tuesday, DBS Group Research said that Sembcorp Industries’ divestment of the power plant is a significant decarbonisation milestone, and that the company is ahead of its green transformation targets.

SEE ALSO

Singapore stocks open higher; STI up 0.2%

“The good progress of its renewable strategy and decarbonisation initiatives warrant further re-rating. In particular, the completion of its recently proposed divestment of coal-fired power plants in India by May 2023 and hopefully its last coal-fired plant in China will follow suit. Meanwhile, the improved supply-demand fundamentals in Singapore’s power market should boost its near-term earnings,” said DBS.

Property developer UOL was the day’s top decliner, with its price dropping by 1.1 per cent, or S$0.08 to S$6.95 at the end of Tuesday’s trading.