Singapore stocks open higher on Thursday; STI up 0.1%

SINGAPORE stocks opened higher on Thursday morning following signs of easing deflation in the Republic's economy, with gains tracking a rebound in US and regional equities.

The Straits Times Index (STI) edged up 0.1 per cent or 4.07 points to 2,837.47 as at 9.02am.

Gainers outnumbered losers 66 to 42 after 43.6 million securities worth S$25.8 million changed hands.

Based on consumer price index (CPI) data released by the Department of Statistics on Wednesday, Singapore's deflation eased in November with both core and headline inflation at -0.1 per cent year on year, compared with -0.2 per cent in October. The November figures met economist expectations of core inflation, but slightly exceeded the forecast headline inflation.

Among index counters, Singtel was the top gainer on Thursday morning, advancing 0.9 per cent or S$0.02 to S$2.34 as at 9.03am.

Shares of NetLink NBN Trust were also among the top five actively traded counters in terms of value. The counter was flat at 96.5 Singapore cents as at 9.02am.

The trio of local banks traded mixed. DBS was up 0.1 per cent or S$0.03 to S$25.10, while OCBC rose 0.2 per cent or S$0.02 to S$10.03. UOB fell 0.2 per cent or S$0.04 to S$25.10.

Oceanus shares were among the most active by volume in early trade, with 6.5 million shares changing hands as at 9.03am. The counter rose 8 per cent or 0.2 Singapore cent to 2.7 cents.

In line with Singapore's holiday calendar, half-day trading takes place on Thursday and will end at noon. The stock market will remain closed Friday for Christmas.

In the US, Wall Street stocks finished mostly higher on Wednesday, shrugging off sharp criticism from outgoing President Donald Trump that could veto the US$900 billion economic relief package passed by Congress. Investors focused on the possibility of a richer package rather than the risk of the stimulus bill dying off.

The Dow Jones Industrial Average gained 0.4 per cent to 30,129.83, while the broad-based S&P 500 advanced 0.1 per cent to 3,690.01. The Nasdaq Composite Index however dipped 0.3 per cent to 12,771.11.

European shares booked yet another day of strong gains at Wednesday's close, spurred by signs of an imminent Brexit deal as talks between the European Union and Britain were said to be in their final stages. The pan-European Stoxx 600 index hit session highs on the news, and closed up 1.1 per cent in holiday-thinned trade.

In Asia, Tokyo stocks opened higher on Thursday, buoyed by hopes for a post-Brexit deal and rallies in US key indices. The benchmark Nikkei 225 index edged up 0.5 per cent in early trade, while the broader Topix index moved up 0.6 per cent.

Elsewhere in the region, South Korea's Kospi index gained 0.6 per cent in early trade, while Australia's S&P/ASX 200 Index rose 0.5 per cent.