Singapore stocks rise after US-Iran ceasefire announcement; STI up 0.8%

[SINGAPORE] Singapore stocks ended higher on Wednesday (Apr 8) after the announcement of a two-week ceasefire agreement between the US and Iran.

The benchmark Straits Times Index (STI) gained 0.8 per cent or 38.04 points to finish at 4,996.05.

Sats led the gainers on Singapore’s blue-chip index, rising 4.5 per cent or S$0.16 to S$3.72.

The worst performer among STI constituents was DFI Retail Group , which fell 3.5 per cent or US$0.16 to US$4.38.

The three local banks ended mixed. OCBC rose 0.1 per cent or S$0.02 to S$22.32, and UOB was up 1.2 per cent or S$0.45 at S$37.32. DBS , meanwhile, finished 0.3 per cent or S$0.17 lower at S$57.30.

Across the broader market, gainers trounced losers 481 to 178, after 2.2 billion securities worth S$2.7 billion changed hands.

Key regional indices reacted positively to the latest development between the US and Iran.

Hong Kong’s Hang Seng Index gained 3.1 per cent, Japan’s Nikkei 225 rose 5.4 per cent, South Korea’s Kospi was up 6.9 per cent, and the FTSE Bursa Malaysia KLCI advanced 1.2 per cent.

Stephen Innes, managing partner at SPI Asset Management, noted that while the ceasefire does not guarantee stability, it removes the immediate threat of escalation.

SEE ALSO

STI jumps over 1%, Asia stocks soar following US-Iran ceasefire agreement

“The shift (in prices) came not from price discovery but from diplomacy, with Pakistan stepping in to carve out a two-week window that pulled the system back from a hard geopolitical edge,” he added.

“Equities responded not out of optimism, but out of release. Asia’s sharp move higher was a direct function of that pressure valve opening.”