Singapore stocks buoyed by potential China reopening; STI up 0.7 per cent

THE Straits Times Index (STI) gained 0.7 per cent or 23.46 points to close at 3,225.35 on Wednesday (May 18), as Asian markets rose on the back of positive news from China.

In the wider market, gainers beat losers 295 to 189, with 1.61 billion securities worth S$1.34 billion having changed hands.

Oanda senior market analyst Jeffrey Halley noted that Asian markets were buoyed by supportive comments about China tech companies by senior government officials.

“Additionally, the Shanghai authorities have announced that 864 financial institutions will be allowed to resume operations, and officials say a full mid-June reopening remains on track,” he said.

Halley also said that the strong overnight rally in US equities could have led regional markets higher too, with US retail sales, manufacturing and industrial production all posting “excellent” numbers on Tuesday.

Across the wider Asian market, Hong Kong’s Hang Seng Index edged up 0.2 per cent, Japan’s Nikkei 225 rose 0.9 per cent, South Korea’s Kospi gained 0.2 per cent, the Jakarta Composite Index surged 2.2 per cent and the Kuala Lumpur Composite Index climbed 0.4 per cent.

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The STI was led by gains from Yangzijiang Shipbuilding on Wednesday, as the counter climbed 6.7 per cent or S$0.06 to close at S$0.88.

The trio of banks rose as well. DBS gained 0.5 per cent or S$0.16 to close at S$31.20, while UOB climbed 0.9 per cent or S$0.26 to close at S$28.89, and OCBC rose 0.7 per cent or S$0.08 to close at S$11.82.

Only 2 counters on the blue-chip index ended in the red: City Development declined 0.1 per cent or S$0.01 to close at S$8.15, and ST Engineering fell 0.3 per cent or S$0.01 to close at S$4.04.