SINGAPORE - Singapore shares closed higher on Wednesday on late buying, after spending all day underwater following overnight losses on Wall Street.
Stronger-than-expected jobs data from the world’s largest economy dimmed hopes of a dovish pivot by the United States Federal Reserve at its latest meeting.
The Straits Times Index advanced 10.63 points or 0.3 per cent to 3,141.13 to log its seventh straight day of gains. For much of the day, however, it appeared as if its six-day rally had run out of steam as caution was thick in the air ahead of the Fed rate hike outcome.
Japan posted losses while most key regional bourses – from Hong Kong, China and Taiwan to Malaysia, South Korea and Australia – logged gains.
Market players have “relied heavily” on US labour market figures to show easing inflationary pressures, but with the stronger demand from a jump in job openings, the expectation for a pause on aggressive rate hikes in December has softened. This is because the robust numbers could provide the Fed with more ammunition to stay on a hawkish course, said Phillip Securities in a note on Wednesday.
On the local bourse, some 1.55 billion securities worth $1.19 billion were traded. Gainers outpaced losers, with 271 counters up and 216 down.
Venture Corp, which is set to release its third-quarter scorecard on Friday, was Maybank Securities’ top pick in Singapore’s tech sector amid a challenging backdrop. The research house expects Venture’s results for the three months to be positive, citing strong demand from customers, a robust order book and resilient margins.
Maybank has a target price of $19.55 for the counter, which finished higher by 6 cents or 0.4 per cent at $16.26 on Wednesday.
Geo Energy Resources was the day’s fourth most active counter with some 25 million shares traded. The coal miner gained $0.01 or 2.5 per cent to $0.405, partly owing to interest on the counter following an announcement by Singapore-listed peer Golden Energy and Resources (Gear) on Nov 1 that it was looking to restructure or exit the energy coal business.
