A robust Wall Street boosts market sentiment in region, STI adds 10 points

Pedestrians using an escalator that runs past an electronic screen and ticker board that indicates stock figures at the Singapore Exchange (SGX) headquarters in Singapore.
Pedestrians using an escalator that runs past an electronic screen and ticker board that indicates stock figures at the Singapore Exchange (SGX) headquarters in Singapore.PHOTO: ST FILE

SINGAPORE - Local shares climbed higher on Wednesday, likely helped by yet another robust showing on Wall Street.

The benchmark Strait Times Index (STI) added 10.6 points, or 0.32 per cent, to 3,348.8, with a total of 1.35 billion shares worth S$1.29 billion traded across the bourse.

The gains here were in line with the Dow Jones Industrial Average's 0.33 per cent rise overnight, after tech giant Apple topped forecasts with a strong set of third-quarter results.

Other markets in the region were broadly higher as well: Tokyo rose 0.47 per cent and Hong Kong put on 0.24 per cent, although Shanghai slid 0.23 per cent.

Some of the biggest winners on the STI included palm oil giant Wilmar International, up 2.4 per cent or eight cents to S$3.44, and property group City Developments, which rose 1.1 per cent or 13 cents to S$11.80.

A local remisier, who declined to be named, singled out the property sector as one to watch.

"Earlier in the year, everyone was still very dour on the sector. But for some reason, we have already witnessed the completion of seven enbloc deals, while recent new property launches have received very strong support from buyers. It has been quite a surprise," he told The Straits Times.

"If this strength continues, we could see a resurgence in property prices, which will be good for developers even though the cooling measures are not pulled back. These are the green shoots that the property market needs."

Elsewhere, OUE Hospitality Trust added 1.3 per cent or one cent to 77 cents, after reporting a higher distribution per stapled security of 1.21 cents for its second quarter on Tuesday.

OCBC analyst Deborah Ong said in a report that the trust's "spectacular" year-on-year DPU growth - at 31.5 per cent - is the highest posted by Singapore Reits under its coverage so far.

"Given the positive operational outlook as well as currently undemanding unit prices, we reiterate 'buy' on OUE Hospitality Trust as our top pick within the hospitality Reit sub-sector," said Ms Ong.