Singapore stocks open higher on Thursday; STI up 0.8%

SINGAPORE shares rose on Thursday even as local lenders DBS and United Overseas Bank (UOB) posted lower Q2 earnings.

The benchmark Straits Times Index (STI) rose 0.8 per cent or 19.97 points to 2,552.66 as at 9.06am. Gainers outnumbered losers 106 to 58, after 93.2 million securities worth S$111.5 million changed hands.

Among the most active counters by volume was Yangzijiang Shipbuilding, which rose 1.6 per cent or 1.5 Singapore cents to 95 cents, with 3.3 million shares traded. The company on Wednesday posted a 17 per cent drop in net profit to 773.9 million yuan (S$154.5 million) for Q2 2020 ended June, as its top line took a hit from lower contributions from the trading business. 

Other heavily traded securities include Genting Singapore, which rose 1.4 per cent or S$0.01 to S$0.72, with 3.2 million shares traded, and Thai Beverage Public Co, which gained 0.8 per cent or 0.5 Singapore cent to 63.5 cents, with 3.1 million shares changing hands as at 9.06am.

The trio of local banks all rose in early trade. DBS gained 1.4 per cent or S$0.27 to S$20.10. The lender on Thursday morning posted a 22 per cent fall in second-quarter net profit, dragged by further provisions and flat total income. The board declared a dividend of 18 Singapore cents per share for the second quarter, down from 30 cents a year ago.

UOB gained 0.7 per cent or S$0.13 to S$19.55. The bank on Thursday posted a 40 per cent drop in second-quarter net profit, hurt by weaker income and a surge in provisions. The board declared an interim dividend of 39 Singapore cents per share, down from the year-ago quarter of 55 cents per share. 

OCBC Bank rose 0.8 per cent or S$0.07 to S$8.71. It will report its earnings on Friday morning.

Other active index counters include Riverstone Holdings, which fell 2.6 per cent to S$0.11 to S$4.10. The Malaysian glove maker posted a 119.3 per cent surge in net profit to RM137.5 million (S$45.27 million) for the six months ended June, driven by the spike in global demand for its healthcare examination gloves, clean-room gloves and face masks. 

The Singapore Exchange gained 0.5 per cent or S$0.04 to S$8.80, while Keppel Corporation lost 0.6 per cent or S$0.03 to S$5.35. 

In the US, the Nasdaq finished at its third straight record on Wednesday as US stocks shrugged off lacklustre employment data and advanced on optimism over additional fiscal support.

European stocks lifted on Wednesday amid positive earnings reports and a surge in commodities shares, but losses in defensive sectors and worries about surging coronavirus cases globally tempered the mood.

Elsewhere in Asia, Tokyo stocks opened lower on Thursday, shrugging off rallies on Wall Street, as investors digested US economic indicators, vaccine news, and earnings reports.