Singapore shares close higher with local bank counters up; STI rises 0.5%

SINGAPORE – The one-month tariff exemption for US automakers announced by President Donald Trump gave markets here and across the region a much-needed lift on March 6.

Local investors made the most of what might be a short-lived respite and drove the benchmark Straits Times Index (STI) up 0.5 per cent or 18.66 points to 3,917.06. Gainers easily led losers 304 to 210 after 1.5 billion shares worth $1.5 billion changed hands.

The optimistic mood boosted the three local banks: DBS rose 0.7 per cent to $45.96; OCBC added 0.1 per cent to $17.19; and UOB put on 1.2 per cent to $38.60.

The STI’s top gainer was ground handler Sats, which advanced 2.3 per cent to $3.14, while Seatrium led the laggards, falling 1.4 per cent to $2.10.

Most major indexes across the region mirrored the STI’s effort.

The Kospi in Seoul increased 0.7 per cent and the Nikkei 225 in Tokyo rose 0.8 per cent but the real star was in Hong Kong, where the Hang Seng shot up 3.3 per cent.

Chinese Premier Li Qiang’s comment at the National People’s Congress on strengthening the platform economy should support a near-term boost to the offshore Chinese equities market, noted Ms Louisa Fok, China equity strategist at Bank of Singapore.

The region’s standout loser was the ASX200 in Australia, which fell 0.6 per cent to a 10-week low after energy and utilities stocks were hit amid trade tensions.

Malaysian shares were also in the loser’s column, falling 0.4 per cent.

The regional gains came after Wall Street went north overnight after the temporary tariff reprieve for the auto giants.

The Dow Jones Industrial Average led the way, adding 486 points or 1.1 per cent, with Ford Motor up 5.8 per cent and General Motors ahead 7.2 per cent.

The S&P 500 recovered much of its losses from the previous session, adding 1.1 per cent, while the Nasdaq rallied 1.5 per cent.

THE BUSINESS TIMES