Singapore stocks take cue from Wall Street gains; STI up 0.3%
Anita Gabriel
SINGAPORE shares rose for the sixth straight session on Tuesday (Aug 29) ahead of a slew of key economic indicators from major economies, chiefly the US, and some optimism from China’s latest support measures.
The Straits Times Index (STI) rose 0.3 per cent or 9.41 points to 3,223.09. Gains across the region followed Wall Street’s overnight rise, coupled with some expectations that more stimulus measures may be in the offing in China.
Sentiment continues to be supported by Beijing’s recent actions to prop up its ailing stock and property markets, as evinced by gains in Chinese stocks, although analysts said the cheer is wearing off.
Key indices across the region from Japan, Hong Kong, China, Taiwan and South Korea to Australia and Malaysia all finished higher.
Meanwhile, the data calendar is packed this week, including US’ weekly initial jobless claims and August consumer confidence.
“Due to the Federal Reserve’s current data-dependent stance, every release of US economic data could play a critical role in determining whether the Fed raises rates again in 2023. As a result, close attention will be paid to upcoming releases...,” said FXTM senior market analyst Lukman Otunuga.
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The potential market shakers could be Thursday’s PCE (personal consumption expenditure) and the nonfarm payrolls report on Friday.
“Ultimately, a strong set of economic releases may strengthen the argument around the Fed raising rates one more time this year, especially after Powell’s hawkish remarks last Friday,” said Otunuga.
On the home front, some 1.3 billion securities worth S$835.6 million changed hands on Tuesday. Gainers trounced losers, with 275 counters up and 242 down.
Thomson Medical Group was the day’s third-most active with 49.3 million shares changing hands. The stock finished at S$0.06, up S$0.002 or 3.5 per cent.
On Monday after trading hours, Thomson Medical reported a 67 per cent drop in net profit to S$14 million in the second half ended June from a year ago, as revenue slipped 9 per cent on lower income received from project-related services. For the full year, net profit was down 32 per cent to S$36.6 million as revenue dropped 6.6 per cent.
Oxley Holdings gained S$0.006 or 6.3 per cent to S$0.101. The mainboard-listed property developer issued its second-half earnings report card on Monday. Net loss in the six months to June widened to S$83 million from S$20 million a year ago, owing to lower revenue and higher finance costs.
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