Singapore stocks end the week in the black; STI up 0.2%

MOST regional indices ended the week in positive territory, bucking the trend of Wall Street's decline after reports that the Biden administration will propose a sharp increase in capital gain taxes on wealthy individuals.

In South Korea, the benchmark Kospi gained 0.27 per cent or 8.58 points to close at 3,186.10. Hong Kong's Hang Seng index also finished the week in the black, advancing 1.12 per cent or 323.41 points to end at 29,078.75.

On the other hand, an impending state of emergency in Japan amid a Covid-19 resurgence drove the Nikkei 225 Index down 0.57 per cent or 167.54 points to end at 29,020.63.

Locally, the Straits Times Index (STI) made gains, ending 0.2 per cent or 6.26 points higher at 3,194.04.

On Friday afternoon, a major Cabinet reshuffle was announced, in which seven ministries will be helmed by a new minister come May 15. Current Education Minister Lawrence Wong will become Singapore's next Finance Minister, replacing Deputy Prime Minister Heng Swee Keat.

Prime Minister Lee Hsien Loong said that "the reshuffle is also an opportunity for (the 4G ministers) to work together in new capacities, so that they can understand each other better, and strengthen their cohesion as a team".

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On Friday, Top Glove, Medtecs, Riverstone and UG Healthcare "gained strongly", averaging 4.8 per cent gains; taking their average month gain to 21.8 per cent, Singapore Exchange's market strategist Geoff Howie pointed out.

He added: "This is on the new high in daily new confirmed cases on April 21, with 890,000 reported global cases of Covid-19, well up from the 2021 low of 280,000 cases on Feb 15."

Among the STI constituents, Jardine Matheson Holdings emerged as top gainer on Friday. The counter rose 2.41 per cent or US$1.54 to end at US$65.48.

Keppel Corporation came in a close second, gaining 2.25 per cent or S$0.12 to end at S$5.45. During its Q1 business update on Thursday, the group posted a slight year-on-year increase in revenue and net profit for the quarter.

DBS Group Research, in a note on Friday, upgraded Keppel to "buy" from its previous "hold", and raised its target price to S$6.20, from the earlier S$5.85. Analyst Ho Pei Hwa said that its "commendable Q1 FY21 (was) a much-awaited indicator for turnaround", and highlighted the group's strong showing from its urban development segment, along with the acceleration of its clean energy transformation into renewables and electric vehicles.

Wilmar International finished the week at the bottom of the index, falling 2.6 per cent or S$0.14 to end at S$5.24.

On the broader market, advancers outnumbered decliners 247 to 217 for the day, as 1.18 billion securities worth S$1.10 billion changed hands.