STI up 0.66%, buoyed by banking stocks

AFTER dipping on hawkish statements by the US Federal Reserve, several key markets in Asia saw investors engaged in buying the dip on Friday (Jan 7).

Singapore's blue-chip gauge Straits Times Index (STI) finished at 3,205.26 points, up 0.66 per cent or 20.96 points for the day, and up 2.61 per cent over the week.

However, over half of STI stocks were in the red on Friday, with 5 of the 7 real estate investment trusts (Reits) under selling pressure as interest rates are expected to rise. The STI performance was saved by banking stocks, which make up over 40 per cent of the index and were among the top STI performers on Friday.

ComfortDelGro dipped 2.16 per cent to S$1.36, to the bottom of STI performance tally. It has been lacklustre after axing its plan to float its Australian business and hovering at a 52-week low of S$1.35.

Wilmar International's plantations in East Malaysia might have been hit by flooding, but the Singapore-listed palm oil producer's share price has been climbing. It rose 1.64 per cent to S$4.34.

Decliners trailed gainers 229 to 236 in the broader market, with 1.31 billion securities worth S$1.2 billion transacted.

The Hang Seng Index closed 23,493.38 points, 1.82 per cent higher; Australia's S&P/ASX 200 increased 1.29 per cent to 7,453.35 points. South Korea's Kospi rose by 1.18 per cent to 2,954.89 points, while the FTSE Bursa Malaysia KLCI finished 1,543.11 points after rising 0.64 per cent.

However, Shanghai Composite Index slid by 0.18 per cent to 3,579.54 points, while Japan's Nikkei 225 finished down 0.03 per cent to 28,478.56 points.