Singapore stocks open higher on Tuesday, STI up 0.1%

SINGAPORE shares were up at Tuesday’s (May 31) open, with the Straits Times Index (STI) gaining 0.1 per cent or 4.19 points to 3,243.11 as at 9.03 am.

Gainers outnumbered losers 76 to 46, after 82.8 million securities worth S$47.3 million changed hands.

The most actively traded counter by volume was Yangzijiang Financial Holding (YZJFH), which saw 12.9 million of its shares worth S$6.4 million traded at 9.03 am. Its shares were up S$0.02 or 4.2 per cent at S$0.50.

YZJFH on Monday said it was upping its dividend payout policy – to at least 40 per cent of the group’s net profit after tax, excluding non-recurring, one-off and exceptional items – for the next 3 financial years up to FY2024.

Among index stocks, Singtel was actively traded, with 1.5 million shares worth S$3.9 million changing hands. Its shares were down S$0.01 or 0.4 per cent at S$2.64.

The telco on Monday said it has been appointed to deploy Micron Technology’s 5G millimetre wave solutions with localised edge core at the semiconductor manufacturer’s 3D Nand flash memory fabrication plant in Singapore.

SATS also saw brisk trading, with 590,000 shares worth S$2.6 million changing hands. The counter was down S$0.12 or 2.6 per cent at S$4.42.

The food solutions and gateway services provider on Monday reported earnings of S$7.2 million for the second half of FY21-22 ended March, compared to a net loss of S$2 million in the corresponding period a year ago. It did not recommend a final dividend for FY21-22, as its board believes it “would not be prudent” in view of the full-year loss incurred after excluding government reliefs.

The trio of local banks were mixed in early trade. DBS rose S$0.17 or 0.6 per cent to S$31.34, and OCBC gained S$0.05 or 0.4 per cent to S$11.77. Meanwhile, UOB edged down S$0.01 or 0.03 per cent to S$29.33.

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Stocks to watch: SATS, Yangzijiang Financial, Singtel

In the US, markets were closed Monday for the Memorial Day holiday.

Meanwhile, European shares touched their highest level in almost a month on Monday, with optimism buoyed by China’s easing of Covid-19 restrictions and adding of new stimulus.

The pan-European Stoxx 600 index rose 0.6 per cent to 447.79, a level not seen since early May, boosted the most by luxury firms, which derive significant demand from China.

Elsewhere in Asia, Tokyo stocks opened lower on Tuesday after strong rallies in the previous session and with investors eyeing Chinese economic indicators due later in the day.

The benchmark Nikkei 225 index was down 0.3 per cent or 69.75 points at 27,299.68 in early trade, while the broader Topix index was down 0.3 per cent or 5.93 points at 1,916.51.