Bulls And Bears

Regional markets pick up on strong Wall St lead

STI inches up 0.15% as traders keep heads down ahead of G-7 summit

Traders kept their heads down yesterday ahead of the G-7 summit that starts in Canada today, leaving the share market stuck in first gear.

The key Straits Times Index opened higher before closing up a modest 5.27 points, or 0.15 per cent, at 3,473.08 with 1.7 billion shares worth $1.2 billion traded. Losers outpaced gainers 201 to 188.

FXTM research analyst Lukman Otunuga noted that expectations for a resolution to the trade issue this week remain low.

"However... investors should always be prepared to expect the unexpected," he said.

"Any signs of the US potentially rolling back steel and aluminium tariffs on Canada and the European Union could ease trade war fears."

All regional markets picked up - except for Thailand, Shanghai and Shenzhen - in part due to another strong lead from Wall Street.

New upbeat data from the United States has reinforced optimism in the global outlook, helping the Dow and Nasdaq hit records for the third straight session overnight.

The most heavily traded counters here included offshore assets operator Ezion Holdings, which fell 0.3 cent, or 2.9 per cent, to 10.2 cents.

It said on Wednesday that a liftboat owned by a joint venture firm capsized in the South China Sea.

Hutchison Port Holdings Trust finished flat at 30.5 US cents on a volume of almost 43 million shares, after OCBC Investment Research noted there was still room for the share price to rise.

It added that the selldown had been overblown on trade war fears and worries that the Chinese authorities would reduce container handling tariffs at its ports.

Shipbuilder Yangzijiang added one cent to $1.04 on a volume of 22.5 million, following new order wins announced on Monday.

Satellite communications firm Addvalue Technologies gained 0.2 cent, or 5.1 per cent, to 4.1 cents on a volume of 28.8 million shares after announcing that it will provide data gathering services for an existing customer until at least 2026. It signed another contract with this customer earlier this year.

Genting Singapore added one cent to $1.25 on a volume of 30 million after a Bloomberg Intelligence forecast an annual casino revenue of US$15 billion (S$20 billion) could be generated across three integrated resorts in Tokyo, Osaka and Hokkaido once they get the green light.

Disa gained 0.2 cent, or 20 per cent, to 1.2 cents on news earlier this week that the firm is in talks to get major US retailers such as The Kroger Co to use its anti-theft technology by the year end.

Retail giant Walmart has already approved the use of Disa in its stores, and there are reportedly discussions with Target Corp as well.

A version of this article appeared in the print edition of The Straits Times on June 08, 2018, with the headline 'Regional markets pick up on strong Wall St lead'. Print Edition | Subscribe