Singapore stocks rise at Thursday's open; STI up 0.2%

SINGAPORE shares opened higher on Thursday (Dec 16), as Singapore moved to cool its housing market amid rising concerns over the property boom.

The Straits Times Index (STI) was up 0.2 per cent or 4.91 points to 3,119.79 as at 9.03 am. Gainers outnumbered losers 84 to 44, after 35.5 million securities worth S$55.4 million changed hands.

The most active counter by volume was Vividthree OMK , which saw 4.1 million of its shares worth S$330,000 traded as at 9.03 am. Its shares gained S$0.005 or 6.6 per cent to S$0.081.

Property developers City Developments Limited (CDL) C09 and UOL Group U14 were also actively traded in the morning. CDL was down S$0.22 or 3.1 per cent at S$6.85, while UOL was down S$0.17 or 2.4 per cent at S$6.93.

The Singapore government on Wednesday (Dec 15) announced property cooling measures that will take effect from Thursday. The measures include raising additional buyer's stamp duty rates and tightening the total debt servicing ratio threshold to 55 per cent from 60 per cent. (see amendment note)

Among index stocks, Singtel Z74 saw brisk trading, with 2.1 million shares worth S$5.2 million changing hands. Its shares were up S$0.02 or 0.8 per cent at S$2.43.

The trio of local banks were mixed in early trade. DBS D05 rose S$0.08 or 0.3 per cent to S$31.98, UOB U11 gained S$0.09 or 0.3 per cent to S$26.77, while OCBC O39 was flat at S$11.29.

In the US, Wall Street stocks rallied on Wednesday after the Federal Reserve outlined a more aggressive plan to address inflation, unveiling steps to tighten monetary policy that largely met market expectations.

The S&P 500 gained 75.48 points, or 1.6 per cent, to end at 4,708.37 points, while the Nasdaq Composite gained 330.94 points, or 2.2 per cent, to 15,568.58. The Dow Jones Industrial Average rose 390.19 points, or 1.1 per cent, to 35,934.37.

Meanwhile, European shares rose on Wednesday helped by stronger technology and healthcare stocks, but weakness in the retail and energy sectors capped gains ahead of a Federal Reserve policy announcement.

The pan-European Stoxx 600 closed 0.3 per cent higher at 470.76 to end a 5-session losing streak.

Elsewhere in Asia, Tokyo stocks opened higher on Thursday, extending rallies on Wall Street after the Federal Reserve signalled a more muscular stance on inflation.

The benchmark Nikkei 225 index was up 1.4 per cent or 400.67 points at 28,860.39 in early trade, while the broader Topix index was up 1.1 per cent or 22.10 points at 2,006.20.

Amendment note: The story has been amended to reflect the correct revised TSDR threshold.