Singapore stocks extend gains amid post-Budget optimism; STI up 0.1%

SINGAPORE - The Straits Times Index (STI) rose 0.1 per cent or 3.97 points to 3,225.91 on Feb 19 amid optimism around how the 2024 Budget could better position local companies.

Across the broader market, losers beat gainers 313 to 253, after 1.62 billion securities worth $1 billion changed hands.

In a report released on Feb 19, RHB analyst Shekhar Jaiswal said the measures announced in the Budget on Feb 16 were comprehensive and help to ensure that Singapore will be able to deliver 2 per cent to 3 per cent in annual gross domestic product growth over the next decade.

He noted that the Government is topping up the Financial Sector Development Fund by $2 billion, which should have a marginal net positive impact on banks.

“The expectation is that it will not only improve core areas of banking, capital markets, asset management and insurance, but also build capabilities in new areas like fintech, as well as green and transition finance,” Mr Jaiswal said.

The trio of local banks posted gains on Feb 19. UOB climbed 0.8 per cent or 23 cents to $29.42, DBS Bank rose 0.8 per cent or 26 cents to $34.13, while OCBC Bank advanced 0.5 per cent or seven cents to $13.33.

Another potential winner that Mr Jaiswal identified is ST Engineering, which has exposure to the defence sector. He noted that the Ministry of Defence remains the top ministry by expenditure in the 2024 Budget, which he views to be positive for the company.

ST Engineering shed 0.3 per cent or one cent to close at $3.90 on Feb 19.

On the STI, Thai Beverage was the top gainer, rising 2 per cent or one cent to 51 cents. Meanwhile, Seatrium was at the bottom of the table, falling 3.2 per cent or 0.3 cent to nine cents.

Major regional indexes ended mixed on Feb 19. Japan’s Nikkei 225 edged down 0.04 per cent, Hong Kong’s Hang Seng Index fell 1.1 per cent while South Korea’s Kospi rose 1.2 per cent. THE BUSINESS TIMES