Singapore shares rise at Wednesday’s open after global markets rally; STI up 0.6%

SINGAPORE stocks opened stronger on Wednesday (Jul 19), after global markets rallied overnight.

The Straits Times Index (STI) added 0.6 per cent or 20.22 points to 3,274.48 as at 9.02 am. Across the broader market, gainers outnumbered losers 81 to 37, or about two securities up for every one down, after 46 million securities worth S$63.5 million changed hands.

The most active counter by volume was Manulife US Real Estate Investment Trust , which tumbled 27.2 per cent or US$0.046 to US$0.123, with 5.9 million units traded.

The counter resumed trading on Wednesday after the manager of the real estate investment trust (Reit) said a sharp decline in portfolio valuations caused a breach of loan covenants, potentially affecting distributions. Furthermore, the Reit’s aggregate leverage has risen to 57 per cent.

Other heavily traded securities on the Singapore bourse included Thai Beverage , which gained 1.7 per cent or S$0.01 to S$0.59, and Seatrium , which held steady at S$0.143.

Banking stocks rose in early morning trade. DBS was up 0.8 per cent or S$0.27 to S$32.80, UOB advanced 1.4 per cent or S$0.39 to S$28.08, and OCBC rose 1 per cent or S$0.12 to S$12.59.

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In the US, stocks rallied for the seventh day in a row after strong banking results boosted the market.

The Dow Jones Industrial Average closed 1.1 per cent higher at 34,951.93. The broad-based S&P 500 rose 0.7 per cent to 4,554.98, and the tech-rich Nasdaq Composite Index added 0.8 per cent to 14,353.64.

European shares also finished Tuesday stronger. The pan-European Stoxx 600 closed 0.6 per cent higher after falling on Monday, as investors worry over weak economic data.