Singapore stocks rise on report of Nodx growth; STI up 0.6%

SINGAPORE - Shares in Singapore ended higher on March 17 after China announced a plan to boost domestic consumption and the Republic reported growth in non-oil domestic exports (Nodx).

The Republic’s Nodx

grew 7.6 per cent in February,

based on data from Enterprise Singapore.

This figure is a turnaround from the previous month’s 2.1 per cent decline, but missed economists’ median estimate of a 9.7 per cent increase.

Meanwhile, China

unveiled an action plan

on March 16 to stimulate its economy, which has struggled to sustain a strong recovery since the Covid-19 pandemic.

The benchmark Straits Times Index (STI) rose 0.6 per cent or 23.34 points to end at 3,859.36.

Across the broader market, advancers beat decliners 305 to 200, with 1.1 billion securities worth $1.3 billion changing hands.

Elsewhere in the region, key indexes ended higher. South Korea’s Kospi rose 1.7 per cent, Japan’s Nikkei 225 was up 0.9 per cent, while Hong Kong’s Hang Seng Index gained 0.8 per cent.

Back home, supermarket and retail store operator DFI Retail Group was the biggest loser on the STI, falling 1.8 per cent or four US cents to US$2.23.

The index was led by energy and urban solutions provider Sembcorp Industries, which added 2.4 per cent or 14 cents to $6.10.

The counter recovered after it fell on the morning of March 14 following the collapse of a deal involving one of its subsidiaries to import natural gas from Indonesia.

Meanwhile, the trio of local banks all ended in the black. DBS Bank rose 0.3 per cent to $44.36, UOB was up 0.7 per cent at $36.98, while OCBC Bank gained 0.8 per cent to $16.61.

However, tariff worries continued to weigh on market sentiment. In a note on March 17, UOB associate economist Jester Koh said that uncertainty surrounding trade policy reached a historical high in February as measured by the Trade Policy Uncertainty index, whereby a rise in trade tensions could lead to a sizeable decline in investments and consumption.

“We argue that even if concessions on trade tariffs may be negotiated in the future, the recent spate of tariff noise could weigh materially on consumer and business confidence especially in the United States, as evidenced by the recent plunge in the March preliminary University of Michigan current economic conditions and consumer expectations index,” he added.

Against this backdrop, UOB has maintained its 2025 NODX growth forecast of 1.5 per cent for Singapore, factoring in a slowdown in exports momentum in the second half of 2025 owing to the impact of tariffs.

THE BUSINESS TIMES