STI closes 0.6% higher in 4-day winning streak

SINGAPORE shares are on a roll despite the generally cautious sentiments across equity markets.

The key Straits Times Index finished a 4-day winning streak on Tuesday (Jan 11), advancing 19.32 points or 0.60 per cent to 3,246.37.

"The index (STI) has remained resilient over the past few trading sessions despite the general risk-off mood, seemingly gaining traction from the preferences towards value," said IG market strategist Yeap Jun Rong.

Yeap added: "...the STI is still trading below its pre-Covid level and its price-to-book valuation hovers just around its 5-year historical mean. If seasonality is of any guide, historical performance over the past 10 years could suggest that the period from January to April seems to be the relatively stronger months before weakness set-in in May."

Other major bourses in the region fared mixed following a choppy overnight session by major US indices and ahead of the US Federal Reserve chair Jerome Powell's renomination testimony. Key gauges in China, Hong Kong and Australia slipped while Taiwan, South Korea and Malaysia posted gains.

The release of US corporate earnings will be the next focus.

Some 1.13 billion units worth S$1.45 billion were traded in the local bourse. Gainers outpaced losers with 244 counters up and 233, down. Gains were led by Singtel, DBS and UOB, which collectively added some 16 index points to the STI on Tuesday.

Singtel jumped S$0.090 or 3.86 per cent to S$2.42 and was one of the day's most active with some 83 million shares done on news reports that it was mulling a potential stake sale in the fibre assets of its Australian subsidiary. In response, the telco issued a statement on Tuesday, saying it regularly reviews options to optimise its assets and operating model, further emphasising that there is no certainty or assurance that any transaction will occur.

iFast Corp closed down S$0.28 or 3.57 per cent to S$7.57. Its shares resumed trading after a halt on Monday pending an announcement. The wealth management platform said it raised S$105 million to fund a proposed acquisition of a UK bank. mm2 Asia closed unchanged at S$0.052. The entertainment company said it will launch a new non-fungible token (NFT) marketplace for licensed digital entertainment tokens and collectibles focusing on popular entertainment and media content from the region. mm2 has also entered into a non-binding term sheet with RHT Aldigi Financial for RHT Aldigi to invest in its new marketplace named Metaviva.

ESR-Reit gained S$0.005 or 1.05 per cent to S$0.48. The Reit's trustee entered into an agreement with Tat Seng Packaging Group to divest an industrial building for S$12 million. The net proceeds will be used to repay outstanding borrowings and/or fund upcoming asset enhancements, potential acquisitions, unit buyback and general working capital requirements, said the Reit manager.