Singapore stocks rise on Wednesday in line with region; STI up 0.3%

SINGAPORE shares rose on Wednesday, breaking two days of losses, in line with gains across most of the region.

The benchmark Straits Times Index (STI) rose 0.3 per cent or 9.42 points for the day to close at 3,118.62.

Elsewhere in Asia, markets mostly closed higher on Wednesday, taking their cue from Wall Street where major indices gained overnight following testimony by US Federal Reserve chair Jerome Powell.

Hong Kong's Hang Seng Index climbed 1.8 per cent, while Taiwan's Taiex rose 1.5 per cent. The Kospi in South Korea gained 0.4 per cent while Japan's Nikkei 225 finished little changed.

IG market strategist Yeap Jun Rong said Mr Powell provided some comfort for investors by reiterating that inflationary pressures will be transitory and the Fed will be patient in waiting to lift borrowing costs.

He said: "This may help to alleviate some investors' concerns of having out-of-hand inflation inducing a quicker-than-expected rate hike."

On the local bourse, gainers outnumbered losers 300 to 177 on Wednesday after 1.56 billion securities worth S$1.15 billion changed hands.

Of the 30 STI constituents, 18 saw gains on Wednesday, with Yangzijiang Shipbuilding emerging as the top index performer. Its shares rose 1.5 per cent or S$0.02 to close at S$1.38.

Other top gainers on the index were Mapletree Industrial Trust, Ascendas Real Estate Investment Trust and Frasers Logistics & Commercial Trust, with their units climbing 1.4 per cent for the day.

Across the broader market, shares of Sembcorp Marine were the most actively traded by volume on Wednesday. The counter rose 1.1 per cent or 0.2 Singapore cent to close at 19.1 Singapore cents, after 112 million shares worth S$21.2 million changed hands.