STI up for third consecutive day on positive global developments

Singapore shares rose for a third straight session on Thursday (Mar 17) as Asian markets rallied following a spate of positive developments.

Optimism was largely fuelled by clarity on the US monetary policy, China's pledge to support the nation's markets as well as progress in peace talks between Russia and Ukraine.

The Singapore Straits Times Index (STI) *STI advanced 0.97 per cent or 31.81 points to 3,322.71, buoyed by gains from real estate investment trusts (Reits) and business trusts.

Elsewhere in the region, Hong Kong's Hang Seng Index jumped 7.04 per cent; Japan's Nikkei 225 was up 3.46 per cent; South Korea's Kospi gained 1.33 per cent and the Kuala Lumpur Composite Index rose 1.24 per cent. Bucking the regional trend was the Jakarta Composite Index which slipped 0.4 per cent.

OCBC's executive director of investment strategy Vasu Menon cautioned that markets will "probably remain volatile" in the coming weeks as several global uncertainties continue to fog outlook.

Still, the medium-term outlook is positive given that recession is not in the picture for now while global activity could be supported by the easing pandemic, said Menon.

"Valuations are also not excessive, real interest rates are still deeply negative and very low, and there is ample liquidity on the sidelines - all of which could offer market support," he added.

Across the Singapore market, advancers outpaced decliners 369 to 175 with 1.47 billion securities worth S$1.69 billion changing hands.

Reits and trusts led gains on the STI with Mapletree Industrial Trust (MIT) ME8U and Keppel DC Reit AJBU emerging at the top of the table. MIT was up 2.3 per cent or S$0.06 to S$2.64 and Keppel DC Reit gained 2.3 per cent or S$0.05 to S$2.24.

At the bottom of the table was Wilmar International F34 which slipped 1.3 per cent or S$0.06 to S$4.61.

Singtel Z74 was the most heavily traded counter by volume on the blue-chip index with over 23.9 million shares changing hands. Shares of Singtel ended 0.8 per cent or S$0.02 higher at S$2.57.