Singapore stocks rise 0.3% despite Yangzijiang Shipbuilding dive

SINGAPORE – Positive corporate earnings and a general lift in sentiment on Wall Street overnight put local investors in the mood to step up trading on Feb 27.

The optimistic frame of mind helped push the benchmark Straits Times Index (STI) up 0.3 per cent or 13.14 points to 3,921.2 points, but losers pipped gainers 289 to 269 on markedly solid turnover of 1.9 billion securities worth $2 billion.

Gains on the STI were led by CapitaLand Investment, which added 4.8 per cent to $2.62 after announcing a bumper payout to shareholders.

The index’s notable loser of the day was Yangzijiang Shipbuilding, which plunged 9 per cent to $2.44 despite the company posting earnings of 3.6 billion yuan (S$664.9 million) for the second half, 50.5 per cent higher than the same period in the preceding year.

The stock also declined earlier in the week, when the United States proposed slapping fees on Chinese-built vessels entering US ports. 

DBS noted on Feb 27 that the news brings “uncertainty and impacts new ordering sentiment”, but any new order placed will be delivered from 2028, nearing the end of US President Donald Trump’s term.

The three local banks were mixed: DBS Bank declined 0.1 per cent to $46.61, UOB added 0.2 per cent to $38.51 and OCBC Bank gained 0.9 per cent to $17.37.

Sentiment also improved on Wall Street with the S&P 500 and Nasdaq shaking off a four-day decline, although tariff concerns resurfaced. The Dow Jones Industrial Average fell 0.43 per cent, while the S&P 500 was flat and the Nasdaq rose 0.26 per cent.

Regional indexes ended mostly lower. Hong Kong’s Hang Seng lost 0.3 per cent, South Korea’s Kospi fell 0.7 per cent and Malaysian stocks ticked down 0.1 per cent but the Nikkei 225 in Tokyo rose 0.3 per cent.

Australia’s market broke a two-day losing streak to close up 0.33 per cent on the back of buoyant corporate numbers from retailer Coles and airline Qantas.

THE BUSINESS TIMES