Singapore shares end short trading week with gains, STI up 0.4%

SINGAPORE – Local shares went into the long weekend with a spring in their step, although it was nothing to get excited about.

The Straits Times Index (STI) advanced 13.08 points, or 0.4 per cent, to 3,233.30, taking its cue from overnight gains on Wall Street. The index added 1.3 per cent over a week shortened by the public holiday for Singapore’s presidential election on Friday.

Gainers outstripped losers 275 to 259 on trade of 2.1 billion securities worth $2.4 billion.

Regional bourses were mixed: Hong Kong, China, South Korea and Taiwan fell, while Australia and Japan finished higher.

Equity markets have been cheering the prospect of a less hawkish approach from the US Federal Reserve following data signalling that the world’s largest economy is cooling as a result of aggressive rate hikes to combat inflation.

Trading remained cautious ahead of the United States’ core personal consumption expenditures data. While the broader trend for US inflation is to head south, there are still concerns that rates will stay high for some time.

Further signs of a weakening Chinese economy also kept investors cautious. The manufacturing purchasing managers’ index for August showed a slight recovery, but was below the 50-point mark. This meant factory activity contracted for the sixth straight month, underscoring the frail recovery from the Covid-19 pandemic.

Gains in Singapore were led by Jardine Cycle & Carriage, Jardine Matheson Holdings, Wilmar International and DBS.

Rex International Holding closed unchanged at 14.3 cents and was among the day’s most active counters, with 22 million shares traded.

Singapore Exchange Regulation issued a notice of compliance on Tuesday to the mainboard-listed firm in relation to its acquisition of medtech start-up Moroxite T. The deal involved an interested person transaction.

Olam Group finished at $1.25, up 0.81 per cent. The agri giant’s food ingredients unit OFI has secured US$1.8 billion (S$2.4 billion) in funding to refinance loans and for general corporate purposes, the company announced on Thursday.

THE BUSINESS TIMES