Singapore stocks rise amid improving China sentiment; STI up 1.6%

THE Straits Times Index (STI) climbed 1.6 per cent or 49.87 points to close at 3,240.58 on Friday (May 20) amid a wider regional rally.

In the broader Singapore market, gainers beat losers 340 to 170, after 1.81 billion securities worth S$1.54 billion changed hands.

Saxo Capital Markets Singapore market strategist Charu Chanana attributed the rise in Asian equities to the larger-than-expected 15 basis point cut in Chinese banks’ 5-year Loan Prime Rate (LPR) from 4.6 per cent to 4.45 per cent.

“After a mixed US session overnight, Asian equities were relieved from China’s LPR cut that exceeded market expectations and may provide support to the ailing property sector,” she noted.

Among major regional indices, Hong Kong’s Hang Seng Index surged 3 per cent, Japan’s Nikkei 225 gained 1.3 per cent, South Korea’s Kospi rose 1.8 per cent, Jakarta Composite Index climbed 1.4 per cent, while the Kuala Lumpur Composite Index slipped 0.02 per cent.

The top STI performer for the day was Jardine Matheson Holdings , which advanced 4.4 per cent or US$2.35 to close at US$55.61.

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The trio of banks were in the black on Friday. DBS climbed 1 per cent or S$0.31 to S$31.20, UOB jumped 3.2 per cent or S$0.91 to S$29.42, while OCBC rose 1 per cent or S$0.12 to close at S$11.75.

No STI counters ended lower on the day.

Chinese electric vehicle maker Nio launched its secondary listing on the Singapore Exchange on Friday. Its shares closed at S$17.30, up 2.4 per cent or S$0.40 from the counter’s debut price of S$16.90.