Singapore stocks rise on optimism over China’s recovery; STI up 1%

THE Straits Times Index (STI) gained 1 per cent or 31.18 points to 3,280.69 on Friday (Sep 15) amid a lifting of sentiment across regional markets as Chinese economic data beat expectations.

For the week, the STI ended up 2.3 per cent.

Across the broader market, gainers beat losers 351 to 227 after 1.8 billion securities worth S$1.7 billion changed hands.

Major markets in the region ended in the black. Japan’s Nikkei 225 index and South Korea’s Kospi gained 1.1 per cent, while Hong Kong’s Hang Seng Index rose 0.8 per cent.

SPI Asset Management managing partner Stephen Innes noted that markets turned “surprisingly bubbly” as China’s retail sales and factory output exceeded forecasts.

“There’s a growing sense of optimism among a cohort of investors who believe that Beijing’s recent initiatives to stimulate the economy and stabilise financial markets are showing signs of success, following the sharp sell-off in August that witnessed record foreign fund outflows from onshore China stocks,” he said.

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However, he advocated caution, adding that a single month of positive data is not sufficient to confirm “a sustained path to recovery”.

“There have been indications that the initial surge in spending activity seen earlier this year is starting to taper off, and the persisting challenges in the real estate sector remain a significant hurdle to overcome,” he said.

The top gainer on the STI was Mapletree Pan Asia Commercial Trust . It rose 2.7 per cent or S$0.04 to S$1.53.

SEE ALSO

China’s economy shows some signs of stabilising but property slump threatens outlook

China’s August industrial output, retail sales growth beat expectations

Emperador was at the bottom of the table. It shed 1 per cent or S$0.005 to S$0.51.