Singapore stocks ride Asian wave amid US ‘self-sabotage’; STI up 0.9%

SINGAPORE - Shares in Singapore ended higher on Jan 13, as investors flocked to Asian equities for the second straight day amid souring sentiment in the US.

The Straits Times Index (STI) rose 40.35 points, or 0.9 per cent, to 4,807.13.

Advancers outnumbered decliners 388 to 218 for the day, with 1.5 billion shares worth $1.5 billion changing hands.

“The fact remains that the Trump administration’s attempts to undermine the US Federal Reserve’s independence – and eventually, credibility – may be one of the most spectacular acts of self-sabotage,” said Mr Vishnu Varathan, head of macro research for Asia ex-Japan at Mizuho Securities in Singapore.

The way Mr Varathan sees it, the

serving of grand jury subpoenas

by the US Department of Justice on Fed chairman Jerome Powell – suggesting criminal investigations – “prompted adverse ‘Sell America’ trades, undermining the US dollar and US Treasuries”.

The top performer on Singapore’s blue-chip index was Keppel, rising 3.1 per cent, or 33 cents, to $10.83.

Yangzijiang Shipbuilding also showed strong gains, climbing 2.5 per cent, or nine cents, to $3.74.

Jardine Matheson Holdings was the biggest loser on the STI for the second consecutive day – slipping another 0.6 per cent, or 45 US cents, to close at US$73.43.

The trio of local banks all ended higher on Jan 13. DBS climbed 1 per cent, or 60 cents, to $58.47, UOB rose 0.3 per cent, or 10 cents, to $36.19, and OCBC Bank jumped 1.1 per cent, or 22 cents, to $20.12.

Key Asian markets also closed higher. Japan’s Nikkei 225 surged 3.1 per cent, South Korea’s Kospi rose 1.5 per cent, Hong Kong’s Hang Seng Index climbed 0.9 per cent, and the FTSE Bursa Malaysia KLCI Index gained 0.8 per cent.

THE BUSINESS TIMES