Singapore stocks climb ahead of US inflation report, STI up 0.7%

SINGAPORE – Positive sentiment about impending inflation numbers in the US lifted Wall Street and generated gains across the region on Jan 11.

The Straits Times Index (STI) did not miss out, rising 21.45 points or 0.7 per cent to 3,201.41 with turnover coming in at 1.01 billion shares worth $760.6 million while gainers outpaced losers 338 to 212.

Investors have been buoyed by broad expectations that the deceleration of inflation in the United States is set to continue.

That optimism spurred Wall Street overnight, with the three major indexes closing higher in a tepid session. The S&P 500 added 0.6 per cent to close within 0.3 per cent of its record high, set about two years ago, while the Nasdaq rose 0.8 per cent and the Dow Jones Industrial Average was 0.5 per cent higher.

Markets are hoping to glean some insight on the trajectory of the US Federal Reserve’s rate cuts with the imminent release of the country’s much-awaited consumer price index data for December.

Investors are also watching China’s inflation and producer prices, set to be released on Jan 12, and Taiwan’s elections on Jan 13.

In Singapore, the trio of banks led the gains. DBS Bank rose 0.7 per cent to $32.72, UOB added 0.4 per cent to $28.33, and OCBC Bank climbed 0.5 per cent to $12.89.

Yangzijiang Shipbuilding and Singapore Airlines also helped lift the index.

Frasers Property rose 3.8 per cent to 95 cents. The Wall Street Journal has reported that

majority owners of the property group could put the company or some of its assets up for sale

as part of a strategic review that is in its initial stages.

Thomson Medical Group fell 3.5 per cent to 5.6 cents. The healthcare operator announced late on Jan 10 that the Singapore Exchange had rejected its third application for more time to restore its public float. The company had until Jan 10 to explore options to address the matter.

THE BUSINESS TIMES