GDP growth boosts market sentiment; STI up 0.6%
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The benchmark Straits Times Index was up 0.6 per cent or 22.15 points at 3,595.91 at the close.
PHOTO: ST FILE
Mia Pei
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SINGAPORE - Stocks in Singapore cheered robust gross domestic product (GDP) growth data released on Oct 14.
The benchmark Straits Times Index (STI) was up 0.6 per cent or 22.15 points at 3,595.91 at the close. Across the broader market, losers outnumbered gainers 301 to 254, after 1.3 billion securities worth $977 million changed hands.
The Republic’s economy grew 4.1 per cent on the year in the third quarter of 2024, with a strong recovery in the manufacturing sector. It is the fastest pace of GDP growth since the third quarter of 2022. The Monetary Authority of Singapore (MAS) expects 2024 full-year GDP growth around the upper end of the 2 per cent to 3 per cent forecast range.
Mr Barnabas Gan, acting group chief economist and head of market research of RHB Bank, said on Oct 14: “We upgrade Singapore’s 2024 full-year GDP growth from 2.5 to 3 per cent. Our estimates suggest Singapore’s growth momentum may slow marginally into Q4 2024.”
As widely anticipated, MAS kept the prevailing rate of appreciation of the Singapore dollar nominal effective exchange rate policy band.
Mr Ben Luk, senior multi-asset strategist at State Street Global Markets, noted a positive outlook for the Singdollar against other Asian peers “despite both positioning and valuation looking stretched”.
He said: “The Singapore dollar is much more resilient, in our view, if renewed dollar strength comes back, given the pricing out of Fed rate cuts as the US economy turns more positive.”
Regional markets ended mixed. The Nikkei 225 gained 0.6 per cent while the Hang Seng Index lost 0.8 per cent. The Shanghai Stock Exchange Composite Index grew 2.1 per cent. Investors await key Chinese data to be released later this week.
On the STI, Yangzijiang Shipbuilding was the biggest loser, down 2.8 per cent or seven cents to $2.43, following its announcement of arbitration proceedings against three of its units. Meanwhile, Thai Beverage was the biggest gainer, rising 1.9 per cent or one cent to 53 cents. THE BUSINESS TIMES
