Singapore shares close higher on Thursday as markets await inflation data

SINGAPORE – Local shares latched on to a more optimistic global mood on Thursday to rack up solid gains, although traders are still keeping a wary eye out for interest-rate tripwires ahead.

The better sentiment, which stemmed from increasingly solid indications that rates might be at their peak in the United States, sent the Straits Times Index up 0.8 per cent or 25.82 points to 3,218.69.

Gainers, as expected, far outpaced losers 385 to 227 with turnover coming in at 1.3 billion shares worth $1 billion.

Regional markets also ended the day well in the black after a positive session on Wall Street overnight – the fourth straight day of gains – with all three indexes heading north.

Malaysia’s Bursa rose 0.5 per cent, the Kospi in Seoul gained 1.2 per cent and the Hang Seng in Hong Kong surged 1.9 per cent.

Tokyo’s Nikkei 225 rose 1.8 per cent while the ASX 200 made it five winning days in a row, but only just, with stocks ahead 0.04 per cent.

SPI Asset Management managing partner Stephen Innes said the higher-for-longer interest rate environment could “weigh on economies and keep markets relatively flat amid the current wide range”.

“Higher rates may also negatively affect growth through a decline in equity valuations, increased federal interest expenses, and a reduction in unprofitable companies,” he noted.

Jardine Matheson Holdings was among the STI’s top gainers of the day, rising 2.9 per cent to US$44.16.

The trio of local lenders also advanced. DBS rose 0.8 per cent to $34, UOB added 0.7 per cent to $28.69, and OCBC gained 0.6 per cent to $13.08.

Venture Corporation was one of the more notable decliners, shedding 0.5 per cent to $12.28.

Wilmar International fell 1.3 per cent to $3.68.

Seatrium, Mermaid Maritime and Thai Beverage were among the most actively traded.

THE BUSINESS TIMES