Local markets extend gains for fourth consecutive day, STI closes 24 points up

The Straits Times Index closed up 23.52 points, or 0.81 per cent, at 2,913.93 on April 14, 2016.
The Straits Times Index closed up 23.52 points, or 0.81 per cent, at 2,913.93 on April 14, 2016.ST PHOTO: DESMOND WEE

SINGAPORE - The Singapore market extended gains for a fourth straight day amid growing optimism in the region over global growth.

The benchmark Straits Times Index (STI) added 23.52 points, or 0.81 per cent, to 2,913.93 on Thursday. This came as the Monetary Authority of Singapore eased monetary policy in a surprise move, following earlier data which showed economic growth was stagnant in the first quarter.

Equities elsewhere in Asia were also buoyant, with Tokyo jumping 3.2 per cent as the yen lost ground.

Shanghai climbed 0.5 per cent as traders continued to ride on confidence from China's strong trade data on Wednesday, while Hong Kong added 0.9 per cent. Sydney was up 1.3 per cent, Seoul advanced 1.8 per cent and Kuala Lumpur inched up 0.04 per cent.

In the United States, Wall Street rose 1.1 per cent on Wednesday, bolstered by financial stocks as investment bank JP Morgan reported stronger-than-expected earnings.

Analysts believe that traders will likely be watching out for more stimulus efforts by central banks to spur growth in the global economy.

"Central banks will continue to ease policy," Mr Nader Naeimi, Sydney-based head of dynamic markets at AMP Capital Investors, which oversees about US$120 billion, told Bloomberg.

"The weakness that we've seen in the US dollar and the fact that the Fed is going slowly now is allowing other countries to come out and ease. That is what we need. Pessimism around earnings growth had gone way, way too far. This rally has more to go."

The gains were led largely by the local lenders, which chalked up firm rises. OCBC Bank rose 14 cents or 1.5 per cent to S$9.26, United Overseas Bank rose 41 cents or 2.1 per cent to S$19.64, and DBS Group Holdings put on 20 cents or 1.3 per cent to S$15.67.

Shipbuiler Yangzijiang Shipbuilding Holdings leapt four cents or 4.1 per cent to S$1.02, after announcing on Wednesday it has won orders for six dry bulk carriers worth a total of US$510 million (S$687.4 million).

Outside of the STI, M1 fell four cents or 1.6 per cent to S$2.44.

A total of 1.05 billion shares worth S$1.3 billion were traded across the bourse.

tsjwoo@sph.com.sg


Correction note: An earlier version of this story said  OCBC Bank jumped 41 cents or 2.1 per cent to S$19.64. This is incorrect. We are sorry for the error.