STI gains 0.4% amid mixed regional showing

SINGAPORE shares rose on Thursday against a mixed showing by regional peers as economic outlook continues to be clouded by China's power crisis and looming interest rate hikes.

The Straits Times Index (STI) *STI ended the day up 0.4 per cent or 12.39 points to 3,086.70.

China's factory activity, which in September contracted to its lowest level since February 2020, signals a slowdown in growth, said IG market strategist Yeap Jun Rong, adding that this may have a knock-on effect on the region.

Contagion risks from Evergrande and a power supply crunch could also weigh on growth outlook, said Mr Yeap.

"Overall, the economic landscape points to the potential need for more policy support to revive growth," he added.

These downside risks, together with the United States' debt issues and fears surrounding rising inflation, had spooked several financial markets in the region.

Tokyo's Nikkei 225 was down 0.31 per cent; Hong Kong's Hang Seng Index slipped 0.36 per cent and the Kuala Lumpur Composite Index ended 0.64 per cent lower.

Meanwhile, Seoul's Kospi gained 0.28 per cent and the Jakarta Composite Index was up 2.02 per cent.

Across the Singapore market, advancers outpaced decliners 237 to 217. Some 1.46 billion shares worth S$1.21 billion changed hands.

Jardine Matheson Holdings J36 was the top gainer on the blue-chip index, with shares up 3.9 per cent or US$2.01 to US$53.04. The company had on Thursday said that it was proposing a US$250 million share buyback plan.

At the bottom of the table was CapitaLand Investment 9CI which shed 3.4 per cent or S$0.12 to S$3.40.

Singtel Z74 was the most heavily traded on the STI with over 36.7 million shares changing hands. Its shares were down 0.4 per cent or S$0.01 to S$2.46.

All three local banks ended the day in the black. DBS D05 was up 0.7 per cent or S$0.21 to S$30.32; UOB U11 gained 1 per cent or S$0.26 to S$25.85 while OCBC O39 ended 0.4 per cent or S$0.04 higher at S$11.50.