Singapore shares upbeat on easing of Covid-19 restrictions; STI up 0.3%

THE benchmark Straits Times Index (STI) gained ground over the course of the trading day on Thursday, particularly after the news about the easing of Covid-19 restrictions broke. It then dipped slightly thereafter to end at 3,162.50, up 9.03 points or 0.29 per cent.

On Thursday afternoon, the authorities announced that groups of up to five people will be allowed to gather from June 14, as the country moves into what has been labelled "Phase 3 (Heightened Alert)". Dining-in at food and beverage establishments for groups of up to five people will also be allowed from June 21, if the local Covid-19 situation remains under control in the coming weeks.

Among the STI constituents, aviation counters were the day's top gainers. Singapore Airlines emerged at the top of the index, advancing 1.99 per cent or S$0.10 to end at S$5.12. Sats closed up 1.96 per cent or S$0.08 at S$4.16.

On Wednesday night, The Straits Times reported that South Korea is hoping to expedite travel-bubble talks with the likes of Singapore and Taiwan to allow quarantine-free travel for fully vaccinated people from as early as July.

CapitaLand was also among the top performers for the day, with the counter gaining 1.08 per cent or S$0.04 to end at S$3.74.

In a note on Thursday, RHB analyst Vijay Natarajan said that the brokerage maintains its overweight call on the real estate sector, with CapitaLand as its top pick, "as we remain positive on (CapitaLand's) latest value unlocking move".

(CapitaLand announced in March that it would place its real-estate development business under private ownership, and consolidate its investment-management platforms and lodging arm into a new listed entity called CapitaLand Investment Management.)

The residential market is expected to maintain its upward momentum in the H2 2021 forecast "after a slight near-term slowdown", with key drivers remaining "the falling inventory levels, low interest rates and uptick in economy and employment numbers", he added.

Meanwhile, Sembcorp Industries slumped to the bottom of the index, falling 1.38 per cent or S$0.03 to end at S$2.15.

On the broader market, decliners outnumbered advancers 250 to 232 for the day, with 1.95 billion securities worth S$1.06 billion changing hands.

Across the region, most Asian markets ended the day in positive territory.

The Nikkei 225 Index rose 97.76 points or 0.34 per cent to end at 28,958.56, while the benchmark Kospi advanced 8.46 points or 0.26 per cent to 3,224.64. The Shanghai Composite Index similarly closed up 19.46 points or 0.54 per cent at 3,610.86.

On the other hand, the Hang Seng Index ended marginally lower at 28,738.88, down 3.75 points or 0.013 per cent.