Singapore stocks edge up on first trading day after Budget roll-out

Singapore stocks ended the day slightly higher yesterday, bucking regional trend in the first trading day after the Government rolled out another expansionary Budget.

The benchmark Straits Times Index (STI) climbed much of the day to close 0.2 per cent or 7.46 points higher at 3,436.36.

Singapore Exchange market strategist Geoff Howie said market activity early in the day showed a "muted" response to the Budget's fiscal and structural initiatives.

"(The response) indicated that the Budget was appropriately focused on social and broader economic objectives," he said.

Maybank Securities economist Chua Hak Bin said the Budget's impact on equities was expected to be mixed, adding that the announcements were "largely positive" for banks, real estate investment trusts (Reits) and telecommunication companies.

For instance, wealth taxes may soften volumes for property developers, while higher goods and services tax (GST) could drive advance retail spending supporting Reits and consumer plays, he said.

As predicted, Frasers Logistics & Commercial Trust and Singtel were the top STI performers. The former gained 1.4 per cent to close at $1.43, while the latter gained 1.2 per cent to close at $2.58.

The trio of local banks were among the advancers, trading between 0.2 per cent and 0.6 per cent higher.

Thai Beverage finished at the bottom of the STI table, after its shares fell 1.4 per cent to close at $0.70.

Across the broader market, losers outnumbered gainers 240 to 231 after $819.7 million securities worth $767.4 million changed hands.

Mainboard-listed Centurion Corporation saw strong gains of 10.5 per cent and closed at $0.37 after it gave a positive profit guidance on Friday.

Elsewhere in the region, markets ended the day mixed. Stocks in Hong Kong and Japan fell, while Australia stocks ended higher and South Korea stocks closed flat.