Singapore stocks begin second half of 2023 in the black; STI up 0.04%

THE Straits Times Index (STI) rose 0.04 per cent or 1.19 points to 3,207.10 on Monday (Jul 3), amid optimism over US economic data released last Friday.

Across the broader market, gainers beat losers 303 to 238 after 1.2 billion shares worth S$1.02 billion changed hands.

On Friday, the US posted a 0.1 per cent rise in personal consumption expenditures (PCE) for the month of May, compared to a 0.4 per cent rise in April.

Across the region, markets were also in the black on Monday. Japan’s Nikkei 225 index rose 1.7 per cent, while Hong Kong’s Hang Seng Index climbed 2.1 per cent and South Korea’s Kospi gained 1.5 per cent.

SPI Asset Management managing partner Stephen Innes said that the lower PCE figure could shift the US Federal Reserve into a “less hawkish mode”.

“Asia gets the new half kicked off amid a growing sense of optimism, with low volatility buoying markets on the back of a surprisingly strong run of US economic data,” he said. He added that this “(wiped) the slate clean of recession concerns amid a growing belief that corporate profits can withstand ‘higher-for-longer’ global interest rates”.

Innes also said that while headline inflation has begun to ease in most major economies as oil prices moderate, core inflation appears to be more stubborn as job markets remain tight and housing prices stabilise.

On the STI, the day’s biggest gainer was Singapore Airlines , which rose 2.5 per cent or S$0.18 to S$7.33.

Meanwhile, Yangzijiang Shipbuilding ended at the bottom of the table, shedding 2.7 per cent or S$0.04 to S$1.46.

SEE ALSO

US consumer spending edges up in May; inflation still high

US dollar turns softer on cooling consumer spending data

The local banks were mixed on Monday. UOB was down 0.04 per cent or S$0.01 to S$27.99, while DBS closed flat at S$31.51 and OCBC fell 0.2 per cent or S$0.03 to S$12.31.