Singapore stocks back in the black; STI up 0.13%

The Straits Times Index inched up 0.13 per cent to end at 3,165. PHOTO: ST FILE

SINGAPORE (THE BUSINESS TIMES) - Singapore stocks on Thursday (June 3) reversed the previous day's losses to end in positive territory, with the Straits Times Index (STI) inching up 0.13 per cent to end at 3,165.

This follows the release of Singapore's latest Purchasing Managers' Index (PMI) on Wednesday. May's PMI was 50.7, marking the 11th straight month in expansion territory. A reading above 50 suggests an improvement, and one below 50, a deterioration.

UOB economist Barnabas Gan said on Thursday that "barring an exacerbation of Covid-19 infections in Singapore, the manufacturing sector is expected to be one of the key pillars of growth for Singapore".

Among the STI constituents, Dairy Farm emerged at the top of the table for the day, gaining 2.06 per cent to end at US$4.46.

Coming in second was City Developments (CDL), which rose 1.56 per cent to $7.83.

In a note on Thursday, DBS Group Research said that CDL trades at an "attractive valuation" of 0.8 times of its price to net asset value, which is "even lower than the low seen during the global financial crisis".

CDL "is a prime beneficiary of the current buoyant residential property market in Singapore", it added.

On the other hand, transport counters ended the day in the red.

Sats slumped to the bottom of the index, falling 1.25 per cent to finish at $3.96. Similarly, ComfortDelGro and SIA declined 0.6 per cent and 0.4 per cent respectively to end at $1.67 and $4.93.

On the broader market, advancers outnumbered decliners 282 to 223, with 2.45 billion securities worth $1.15 billion changing hands.

Across the region, Asian markets ended the day mixed.

In Japan, the Nikkei 225 Index gained 0.39 per cent amid the pick-up in the country's vaccination drive. In Korea, the benchmark Kospi advanced 0.72 per cent.

Meanwhile, the Hang Seng Index in Hong Kong ended the day lower, falling 1.13 per cent with investors taking a backseat as they await the release of United States jobs data at the end of the week.

Join ST's Telegram channel and get the latest breaking news delivered to you.