Singapore stocks rebound on China stimulus measures; STI up 0.6%

SINGAPORE shares closed higher on Wednesday (Jan 24), reversing a losing streak since the start of the week.

The Straits Times Index (STI) rose 0.6 per cent or 18.08 points to end at 3,153.33. Across the broader market, advancers outnumbered decliners 343 to 206, after 1.7 billion securities worth S$938.1 million changed hands.

Most STI constituents were in the black on Wednesday. At the top of the index was real estate developer Hongkong Land , which rose 2.9 per cent or US$0.09 to US$3.19.

Several real estate investment trusts rounded up the top of the table.

Frasers Logistics & Commercial Trust climbed 2.7 per cent or S$0.03 to S$1.13, while CapitaLand Ascendas Reit rose 2.4 per cent or S$0.07 to S$2.97.

At the bottom of the index was consumer group conglomerate Jardine C&C, which fell 2.4 per cent or S$0.66 to S$27.03.

Shares of Seatrium remained the most actively traded by volume, up 1.9 per cent or S$0.002 to S$0.106 after 364.2 million shares worth S$38.3 million changed hands.

Regional bourses ended mixed on Wednesday. South Korea’s Kospi was down 0.4 per cent, while Japan’s Nikkei 225 fell 0.8 per cent. However, Australia’s ASX 200 edged up 0.1 per cent and Hong Kong’s Hang Seng Index was up by 3.4 per cent.

The Shanghai Composite Index advanced 1.8 per cent on the back of news that Chinese officials are considering a stimulus package to boost the country’s economy.

China’s central bank also announced on Wednesday that it would cut the amount of cash that banks are required to hold as reserves from next month.

OCBC Investment Research said in a note that it expects China’s policymakers to implement a stabilisation package to boost market sentiment and stability. This would support a trading rebound in the near term, said OCBC.

Separately, Saxo market strategist Charu Chanana said that she expects markets to begin pricing in the risk of a Trump presidency.

This comes after former US president Donald Trump increased his chances of being the Republican nominee for the 2024 US presidential elections in November with a victory in the New Hampshire primary.

Chanana noted that Trump’s policies could bring volatility in the long end of the yield curve.

“The possibility of trade wars and higher import tariffs would also likely make the Federal Reserve concerned about the path of inflation. Together with risks of overheating the economy, the market may be forced to push back on the Fed easing expectations,” she said.