Export growth lifts investor sentiment; STI up 1%

SINGAPORE shares ended higher on Thursday (Oct 17) after the release of September’s export data.

The benchmark Straits Times Index (STI) was up 1 per cent or 34.63 points at 3,625.25. Across the broader market, losers outnumbered gainers 296 to 278, after 1.5 billion securities worth S$1.2 billion changed hands.

In September, non-oil domestic exports (NODX) posted a weaker-than-projection expansion of 2.7 per cent on the year. Electronics NODX grew 4 per cent, a sharp slowdown compared with the previous month.

Jester Koh, associate economist at UOB, noted an ongoing upturn in the electronics cycle as it continued to show improvements from the weakest reading recorded in May 2023.

However, he added that the electronics cycle in both South Korea and Taiwan – the region’s bellwether – seemed to have peaked in the third quarter and is on the cusp of a downcycle.

“(This) may hint that Singapore’s electronics NODX growth could embark on a similar downtrend in the months ahead.”

On the STI, the biggest decliner was  Seatrium , which dropped 1.5 per cent or S$0.03 lower to S$1.98.

Singtel was the top gainer; the counter ended at S$3.25, up 2.5 per cent or S$0.08.

Most key indices in the region finished lower. The Nikkei 225 lost 0.7 per cent. The Hang Seng Index shed 1 per cent, while the FTSE Bursa Malaysia KLCI was up 0.5 per cent.

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Stocks in mainland China ended the day lower after a housing ministry press conference. The country’s housing minister reiterated municipal governments’ autonomy to relax buying curbs, but failed to impress investors.

The CSI 300 real estate index, which had gained over 5 per cent the day before, fell 7.9 per cent, while the benchmark Shanghai Shenzhen CSI 300 declined 1.1 per cent.

Morningstar equity analyst Jeff Zhang said: “The most significant directive pertains to credit support to projects in (the) whitelist, as authorities will lift overall funding size to over four trillion yuan (S$737.5 billion) by end-2024. We expect an acceleration in execution, with more distressed developers receiving funds for home completions, which would help shore up homebuyers’ confidence.”