Singapore stocks get boost from Wall Street rally; STI up 0.6%
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Tay Peck Gek
ASIAN markets rallied on Thursday (Aug 4) as Wall Street finished higher overnight on robust economic data and earnings.
The Straits Times Index (STI) closed at 3,269.86, 0.6 per cent or 17.8 points higher, with 21 of the 30 stocks that make up the benchmark registering gains.
Yangzijiang Shipbuilding was up 1.1 per cent or S$0.01 at S$0.92. This, however, is deemed to be “trading at an unwarranted deep discount to peers” by DBS Group Research, which in a note put the target price at S$1.38.
Analyst Ho Pei Hwa wrote that the re-rating of the blue-chip as a pure shipbuilding play after the spinning-off of Yangzijiang Financial Holdings has yet to come through, as macro concerns weigh. She added that investors seem to have overlooked Yangzijiang’s earnings potential and the structural uptrend of shipbuilding demand.
The banking trio were all up, after DBS released its better-than-expected financial results before market open. DBS, UOB and OCBC rose 0.3 per cent, 0.2 per cent and 1.8 per cent respectively to S$32.41, S$27.84 and S$12.21.
Jardine Matheson came in at the bottom of the STI performance tally, falling 1 per cent to US$54.03.
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Decliners trailed gainers 185 to 295 in the broader market on a turnover of 1.29 billion securities with a total value of S$1.19 billion.
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