Singapore stocks inch up on June 26 as May factory output beats forecasts

SINGAPORE – Investors latched on to news that Singapore’s factory output beat forecasts in May to nudge local shares higher on June 26.

The benchmark Straits Times Index (STI) rose 0.2 per cent or 5.42 points to 3,331.7, with gainers outnumbering losers 270 to 214 on trade of one billion securities worth $874.9 million.

Singapore’s factory output grew 2.9 per cent year on year in May, in large part due to a rebound in the key electronics sector.

The increase easily beat the forecast 1.4 per cent rise tipped by private-sector economists and marked a stark turnaround from April’s revised 1.2 per cent decline.

Mr Jester Koh, associate economist at UOB, noted the electronics rebound, saying he is optimistic over the sector’s recovery.

The anticipated global easing of financial conditions could also provide some tailwinds to global investment and consumption activity towards the latter half of the year, Mr Koh said.

Singtel was the STI’s top gainer, rising 1.5 per cent to $2.70, while Seatrium was the biggest decliner, falling 1.3 per cent to $1.47.

The local banks ended mixed. DBS Bank gained 0.1 per cent to $35.69 and UOB rose 0.4 per cent to $31.03, but OCBC Bank lost 0.1 per cent to $14.40.

Key indexes in the region mostly rose after Wall Street’s mixed session overnight that underpinned signs of investors hedging their bets. A buoyant Nvidia lifted the tech-heavy Nasdaq 1.3 per cent and the S&P 500 rose 0.4 per cent but the Dow Jones Industrial Average lost 0.8 per cent.

The Hang Seng Index in Hong Kong rose 0.1 per cent, Tokyo’s Nikkei 225 was up 1.3 per cent, the Kospi in Seoul gained 0.6 per cent and Malaysian stocks added 0.4 per cent.

Australian shares were the regional outlier, falling 0.7 per cent on fears that the higher-than-expected inflation number announced on June 26 will prompt more interest rate rises.

THE BUSINESS TIMES