Fourth straight day of gains for STI as positive mood prevails

The positive mood among investors remained intact yesterday with the local market racking up its fourth straight session of gains.

Optimism was in the air here and across the region, with Oanda senior market analyst Craig Erlam noting that there has been a "clear upturn in sentiment" among traders globally.

"I think we're also seeing investors come to terms with the higher interest rate environment that lies ahead," he added.

"There will be a tipping point if markets are forced to price in even more rate hikes but there does now appear to be a level of comfort at the prospect of four or five increases this year from the Fed."

Local stocks made the most of it and finished on an upbeat note with the Straits Times Index (STI) chalking up a gain of 0.2 per cent or 7.96 points to close at 3,428.

Gainers beat losers 279 to 182 after 1.4 billion shares worth $1.6 billion changed hands.

It was similar across the region, with most markets in positive territory. The KLCI was up 1.2 per cent, the Kospi added 0.1 per cent, the Nikkei put on 0.4 per cent and the Hang Seng advanced 0.4 per cent.

Great Eastern was the top advancer here, rising 1.7 per cent to $21.79. Jardine Matheson Holdings was another top gainer, adding 0.6 per cent US$60.35.

Hongkong Land was the top gainer among the STI constituents, adding 2.9 per cent to US$5.72.

Shinvest Holding was the biggest loser, falling 14.5 per cent to $2.82.

OCBC was the only lender to end the day in the black, closing at $13.24, up 0.2 per cent, while rivals UOB and DBS were among the biggest decliners. UOB fell 0.8 per cent to $32.54 while DBS was down 0.4 per cent to $36.85.

Penny stock gold miner and explorer Shen Yao Holdings was the most heavily traded, with 104 million shares done although it ended unchanged at 0.3 cent. Also heavily traded were Sembcorp Marine, Raffles Education and Aspen.