Singapore stocks rise amid improving sentiment; STI up 0.2%

THE Straits Times Index (STI) rose 0.2 per cent or 6.99 points to 3,218.08 on Tuesday (May 23) amid improving market sentiment.

Across the broader market, gainers beat losers 278 to 254 after 1.3 billion shares worth S$909.9 million were traded.

Qontigo Asia-Pacific head of applied research Olivier d’Assier said that investor sentiment has continued to improve globally in the past two weeks, recovering from lows reached during the US banking crisis in March.

“Markets and sentiment have recovered globally since mid-March, but this recovery has been driven by declining volatility and a continued preference for highly liquid, large and profitable companies with a well-diversified revenue base away from China and no or little debt,” he said.

However, he noted that investors may still be concerned about the deterioration in the US-China relationship: “This weekend’s (Group of Seven) meeting in Tokyo has reinforced the urgency behind the switch from ‘just-in-time’ to ‘just-in-case’ supply-chain management.”

On the STI, DBS was the top gainer, rising 1.9 per cent or S$0.58 to close at S$31.49.

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As for the other local banks, UOB gained 0.5 per cent or S$0.15 to close at S$27.95, while OCBC shed 0.3 per cent or S$0.04 to S$12.26.

Meanwhile, DFI Retail Group was at the bottom of the table. Its shares shed 3.3 per cent, or US$0.10 to US$2.98.

Singapore Airlines was also actively traded by value, falling 1.7 per cent or S$0.11 to S$6.38 after 10.5 million shares worth S$66.9 million changed hands.

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Markets in the region were mixed on Tuesday. Japan’s Nikkei 225 shed 0.4 per cent, while Hong Kong’s Hang Seng Index fell 1.3 per cent and South Korea’s Kospi rose 0.4 per cent.