Singapore shares track regional gains on positive sentiment; STI up 0.4%

SINGAPORE – Local shares shrugged off a mixed session on Wall Street overnight and followed regional markets higher on Feb 12.

The positive sentiment pushed the benchmark Straits Times Index (STI) up 0.4 per cent or 13.86 points to 3,874.62 with gainers outnumbering losers 347 to 186 on solid trade of 1.9 billion securities worth $1.5 billion.  

Seatrium was the STI’s top gainer, up 6.5 per cent to $2.30, while DFI Retail Group was the biggest loser, down 3.4 per cent to US$2.29.

The local banks ended mixed. DBS Bank advanced 0.2 per cent to $44.96, but OCBC Bank lost 0.3 per cent to $17.30, while UOB closed flat at $37.50. 

The latest testimony by Federal Reserve chair Jerome Powell on monetary policy was in line with his previous remarks, noting that the US economy remains strong, and the Fed is not in a hurry to cut rates.

Swissquote Bank senior analyst Ipek Ozkardeskaya said all eyes are on the US inflation update, noting: “A set of softer-than-expected inflation numbers could help soothe inflation worries and encourage a deeper retreat in the US dollar and a further advance across the major peers. (Meanwhile), a stronger-than-expected set of inflation figures could fuel worries, back a further rise in the US yields and the dollar, and weigh on risk appetite.”

Regional markets also closed higher. Japan’s Nikkei 225 was up 0.4 per cent, Malaysian shares added 0.8 per cent and the Hang Seng in Hong Kong put on 2.6 per cent.

Australia’s bourse was the standout, up 0.6 per cent to a record high on the back of surging lenders after the Commonwealth Bank reported stellar results and pointed to economic green shoots.

Wall Street was not much to write home about. Investors factored in tariffs, interest rate policy and corporate earnings and left the S&P 500 largely unchanged. The Dow Jones Industrial Average added 0.3 per cent, while the tech-heavy Nasdaq fell 0.4 per cent.

THE BUSINESS TIMES