Singapore stocks track regional gains; STI up 0.5%

[SINGAPORE] Singapore stocks ended higher on Monday (Jan 5), tracking regional gains.

The benchmark Straits Times Index (STI) gained 0.5 per cent or 24.38 points to finish at 4,680.50.

The iEdge Singapore Next 50 Index, meanwhile, rose 0.3 per cent or 3.64 points to 1,462.01.

Across the broader market, gainers outnumbered losers 329 to 268, after 1.5 billion securities worth S$1.4 billion changed hands.

ST Engineering led the gainers on Singapore’s blue-chip index, rising 3.6 per cent or S$0.30 to S$8.71.

The worst performer among STI constituents was Hongkong Land , which fell 1.6 per cent or US$0.11 to close at US$6.94.

The three local banks ended Monday higher. DBS gained 0.4 per cent or S$0.25 to S$56.65, OCBC rose 0.6 per cent or S$0.11 to S$19.96, and UOB was up 0.7 per cent or S$0.25 at S$35.50.

Key regional indices were mostly in positive territory. Japan’s Nikkei 225 gained 3 per cent, South Korea’s Kospi climbed 3.4 per cent and the FTSE Bursa Malaysia KLCI rose 0.6 per cent. Hong Kong’s Hang Seng Index ended the day almost flat.

The regional gains follow the political upheaval in Venezuela over the weekend. On Jan 3, the US conducted a military operation, capturing President Nicolas Maduro and his wife in Caracas.

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“The risk premium fades quickly when investors realise the event reduces tail risk rather than amplifying it,” said Stephen Innes, managing partner at SPI Asset Management.

He added that Asia is continuing its rally as technology remains the leading edge. “Everyone is broadly constructive because earnings visibility still outweigh macro fear at this stage.”