Singapore stocks rise for third straight day on strong sentiment; STI up 0.5%

SINGAPORE – Local stocks enjoyed a third straight day of gains on Aug 6 despite mixed regional markets and declines on Wall Street over concerns about the US’ faltering jobs market.

The buoyant mood here lifted the Straits Times Index (STI) 0.5 per cent, or 19.12 points, to 4,227.70 with gainers besting losers 309 to 217 on solid trade of 1.5 billion securities worth $1.4 billion.

Regional markets were not as sure-footed, with South Korea’s Kospi and the Hang Seng in Hong Kong both flat, while Japan’s Nikkei 225 rose 0.6 per cent and Malaysian stocks advanced 0.2 per cent.

Australia’s ASX 200 was the standout performer, rising 0.8 per cent to a record close.

A downbeat Wall Street overnight failed to inspire as tariff uncertainty continues to unnerve markets, particularly in the area of pharmaceuticals, which may be hit with huge levies. On the other hand, investors there are growing more confident that more interest rate cuts are coming, while a robust earnings season has lifted spirits.

The S&P 500 fell 0.5 per cent and the Nasdaq dropped 0.65 per cent but both remain at near record highs. The Dow Industrials declined 0.14 per cent.

The STI’s gainers here were led by Yangzijiang Shipbuilding, which rose 2.3 per cent to $2.63, while Sembcorp came in at the bottom of the table, shedding 1.3 per cent to $7.70.

The local banks ended in positive territory: DBS Bank rose 1.3 per cent to $48.85, OCBC Bank was up 0.4 per cent to $17.04, and UOB edged up 0.2 per cent to $36.45.

Interactive Brokers senior economist Jose Torres noted that tension resulting from the US tariffs imposed on semiconductors and pharmaceutical equipment as well as on Moscow and New Delhi are “generating some hesitation in markets during this weak seasonal period”.

Mr Torres expects US equities across most sectors to face selling pressure, with cyclical commodities, except for natural gas, to trade lower.

THE BUSINESS TIMES