Regional markets rise on hopes of US debt ceiling breakthrough; STI up 0.3%

THE benchmark Straits Times Index (STI) gained 0.3 per cent or 8.5 points to 3,211.09 points amid a regional rally on Monday (May 22).

Regional markets appeared to cheer news of a positive discussion between US President Joe Biden and Republican House Speaker Kevin McCarthy on raising the federal debt ceiling over the weekend.

Japan’s Nikkei 225 climbed 0.9 per cent, South Korea’s Kospi rose 0.8 per cent, and Hong Kong’s Hang Seng Index gained 1.2 per cent.

Back in Singapore, across the broader market, losers narrowly beat gainers 278 to 277 after 1.3 billion shares worth S$976.3 million changed hands.

IG market analyst Yeap Jun Rong said in a note on Monday that Wall Street paused its recent rally on Friday due to “a sour tone” in negotiations over the debt ceiling.

“Nevertheless, sentiments will remain highly sensitive to further negotiations between US President Joe Biden and Republican House Speaker Kevin McCarthy later today, which may keep a cautious lid on Wall Street for now as the risks of an impasse remain on the table,” he said.

On the STI, the biggest gainer was Sats , which rose 6.3 per cent or S$0.17 to S$2.87.

Another heavily traded counter was Singapore Airlines , which climbed 3.7 per cent or S$0.23 to S$6.49, after 19 million shares worth S$121.7 million changed hands.

Yangzijiang Shipbuilding landed at the bottom of the table on Monday, shedding 1.6 per cent or S$0.02 to close at S$1.25.

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The trio of banks ended the day mixed. DBS climbed 0.3 per cent or S$0.08 to S$30.91, and OCBC climbed 0.4 per cent or S$0.05 to S$12.30. UOB , meanwhile, shed 0.3 per cent or S$0.09 to S$27.80.