STI posts 5-day winning streak on string of upbeat macro data

SINGAPORE shares posted their fifth straight day of gains on Monday, with the Straits Times Index (STI) closing 36.7 points or 1.4 per cent higher at 2,689.61, in tandem with buoyant markets in the region.

The rise was led by renewed feel-good factor after a slew of upbeat data signalled that things could be turning around for the world, despite the still cloudy economic picture and as Covid-19 infections hit record high globally.

Analysts warn that the rally is driven by liquidity rather than fundamentals and risk aversion could shatter the bubble if fundamentals fail to catch up or generous fiscal and monetary interventions wane.

"The more asset prices disconnect from their core fundamentals, the more likely we will see a sharp correction occurring in the future," said FXTM chief market strategist Hussein Sayed.

Key gauges rose in Japan, Taiwan, South Korea and Malaysia, with Hong Kong and China posting gains of nearly 4 and 6 per cent, respectively while Australia bucked the trend and declined 0.7 per cent.

On the Singapore bourse, turnover came in at 1.86 billion shares worth S$1.17 billion. All but one counter on the STI posted gains, with the three big banks DBS, OCBC and UOB leading the pack and adding 16.7 points collectively to the index.

Hospitality real estate investment trusts (Reits) chalked up sweet gains, fuelled by positive news that hotels will re-open for staycations in Singapore.

Units of CDL Hospitality Trusts (CDLHT) - which has significant exposure in Singapore with six hotels - rose four cents or 3.7 per cent to S$1.11.

Shares of mainboard-listed Hi-P International, a mainboard-listed electronics contract manufacturer, drew significant activity, jumping 17 cents or nearly 16 per cent to S$1.24. Some 16 million shares changed hands. The unusual price movement prompted a trading activity query from the SGX around mid-day.

For full listings of SGX prices, go to https://www2.sgx.com/