Singapore stocks end four days of losses; STI closes 1.6% higher

SINGAPORE – Four days of red ink and increasing investor concern gave way to a relief rally on Aug 7 that boosted local shares.

The welcome turnaround, sparked in large part by a solid rebound on Wall Street overnight, propelled the Straits Times Index (STI) up 1.6 per cent or 51.28 points to 3,249.72. Gainers trounced losers 379 to 207 on trade of 1.2 billion securities worth $1.8 billion.

Global markets were keen to put Aug 5’s rout behind them, although investors are bracing themselves for more volatility. Wall Street set the pace: The S&P 500 rallied 1 per cent, lifted by gains in all 11 sectors; the Dow Jones Industrial Average added 0.8 per cent; and the Nasdaq put on 1 per cent. The S&P 500 is still up 9.9 per cent in 2024, but well down from the 19 per cent gain it had registered in July.

Mr Alessandro Fezzi, LGT’s head of research, content and publication, noted: “We seem to be observing a certain degree of consolidation or stabilisation.

“Whether markets can now start to recover or whether the downward trend will continue is difficult to answer... There is likely to be a lack of real impetus over the next few days.”

Companies here announcing favourable results won support from investors.

Sembcorp Industries closed at $4.73, up 6.3 per cent, a day after it announced that half-year earnings rose 2 per cent in the absence of losses from a discontinued operation. It was also the best performing STI constituent.

DBS Group Research gave the counter a “buy” recommendation with a higher target price of $7.35 as it raised the 2025 earnings forecast by 6 to 11 per cent.

DBS rose 2.7 per cent to $33.65, after posting a 6 per cent improvement in second-quarter earnings to $2.79 billion. The market had closed before chief executive Piyush Gupta announced that he is retiring in 2025.

THE BUSINESS TIMES