Singapore stocks rise, tracking regional gains; STI up 1.3%

SINGAPORE – Local stocks finished stronger on Feb 19, tracking regional gains and following a strong rebound in technology shares on Wall Street.

The benchmark Straits Times Index (STI) gained 1.3 per cent, or 62.98 points, to finish at 5,001.56 points. Meanwhile, the iEdge Singapore Next 50 Index rose 0.6 per cent, or 9.13 points, to 1,510.73 points.

Across the broader market, gainers outnumbered decliners 316 to 142, after 1.4 billion securities worth $2.1 billion changed hands.

Regional markets also ended in positive territory. Japan’s Nikkei 225 index rose 0.6 per cent, South Korea’s Kospi was up 3.1 per cent, and the FTSE Bursa Malaysia KLCI advanced 0.6 per cent.

The Asian rally followed a strong performance on Wall Street on Feb 18, led by tech giants including Nvidia and Amazon, which helped ease earlier concerns about artificial intelligence investments.

“Economic data signalling the continued buoyancy of AI-related capital expenditures is propelling animal spirits on Wall Street,” said Mr Jose Torres, a senior economist at Interactive Brokers.

He added that “positive durable goods and industrial production prints” reflect ongoing manufacturing activity, easing concerns over large-scale spending in the sector and driving a “strong comeback” in tech stocks.

At the same time, ongoing tensions between the US and Iran kept oil prices steady. Gold held firm as investors sought safety amid geopolitical uncertainties.

Mr Torres noted that the “commodity complex as a whole is largely gaining on safe-haven demand”, with gold climbing back above US$5,000. “Elsewhere, volatility protection instruments are seeing lessening interest as investors unwind hedges,” he added.

On the STI, Yangzijiang Shipbuilding led the gainers, rising 4.9 per cent to end at $3.64. The worst performer among the index’s constituents was Mapletree Logistics Trust, down 1.5 per cent to $1.28.

THE BUSINESS TIMES