Singapore stocks back in the black; STI up 0.13%

SINGAPORE stocks on Thursday reversed the previous day's losses to end in positive territory, with the Straits Times Index (STI) inching up 0.13 per cent or 3.96 points to end at 3,165.

This follows the release of the latest Purchasing Managers' Index (PMI) on Wednesday. May's PMI was 50.7, marking the 11th straight month in expansion territory. A reading above 50 suggests an improvement, and one below 50, a deterioration.

UOB economist Barnabas Gan said on Thursday that "barring an exacerbation of Covid-19 infections in Singapore, the manufacturing sector is expected to be one of the key pillars of growth for Singapore".

He added: "Singapore's export-oriented industries are expected to ride on the winds of the global trade growth, which should subsequently benefit externally-facing sectors such as manufacturing, wholesale and retail trade and financial services."

Among the STI constituents, D01 : D01 0% emerged at the top of the table for the day, gaining 2.06 per cent or US$0.09 to end at US$4.46.

Coming in second was C09 : C09 0%(CDL), which rose 1.56 per cent or S$0.12 to S$7.83.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

In a note on Thursday, DBS Group Research said that CDL trades at an "attractive valuation" of 0.8 times of its price to net asset value, which is "even lower than the low seen during the global financial crisis".

CDL "is a prime beneficiary of the current buoyant residential property market in Singapore", it added.

On the other hand, transport counters ended the day in the red. S58 slumped to the bottom of the index, falling 1.25 per cent or S$0.05 to end at S$3.96. Similarly, C52 and C6L : C6L 0% declined 0.6 per cent and 0.4 per cent respectively to end at S$1.67 and S$4.93.

On the broader market, advancers outnumbered decliners 282 to 223, with 2.45 billion securities worth S$1.15 billion changing hands.

Across the region, Asian markets ended the day mixed.

In Japan, the Nikkei 225 Index gained 0.39 per cent or 111.97 points to end at 29,058.11, amid the pickup in the country's vaccination drive. In Korea, the benchmark Kospi advanced 0.72 per cent or 23.20 points to 3,247.43.

Meanwhile, the Hang Seng Index in Hong Kong ended the day lower, falling 1.13 per cent or 331.59 points to 28,966.03.