Singapore stocks track Wall St gains to end higher on Friday; STI up 1.2%
Tan Nai Lun
SINGAPORE shares ended the week higher on Friday (Feb 2), tracking gains on Wall Street.
The benchmark Straits Times Index (STI) was up 1.2 per cent or 36.71 points to 3,179.77. Across the broader market, gainers outnumbered losers 325 to 257, after 1.5 billion securities worth S$1.2 billion changed hands.
Most key indices in the region also ended the day higher. The Nikkei 225 was up 0.4 per cent, the Kospi Composite Index rose 2.9 per cent, and the FTSE Bursa Malaysia KLCI gained 0.2 per cent. Meanwhile, the Hang Seng Index fell 0.2 per cent.
US manufacturing data released by the Institute for Supply Management (ISM) overnight had found itself in a “sweet spot” and underscored economic optimism about a soft landing, said Vishnu Varathan, chief economist for Asia excluding Japan at Mizuho Bank.
“Markets were arguably really intent on a positive spin to reinforce the ‘Goldilocks soft-landing’ scenario using US ISM script,” he said.
The resultant “risk-on” sentiment partially helped to recoup equity losses post Fed (Federal Reserve) meeting, and led to a slip in US Treasury yields and a softer US dollar, Varathan noted.
On the STI, the biggest gainer was UOL , which rose 3.2 per cent or S$0.19 to S$6.20.
Meanwhile, Yangzijiang Shipbuilding was the biggest decliner, falling 1.8 per cent or S$0.03 to S$1.65.
The trio of local banks all ended higher on Friday. DBS gained 1.2 per cent or S$0.39 to S$32.22, OCBC climbed 1.3 per cent or S$0.16 to S$13, while UOB advanced 1 per cent or S$0.28 to S$28.62.
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