Bulls And Bears

S'pore stocks snap losing streak as fears ebb over US Fed rate rise

 • Gainers trump losers 335 to 158 on trade worth $1.46 billion • Key Asian markets also shake off week's woes  • City Developments top STI performer; Singtel at bottom

The local market snapped its losing streak yesterday, thanks to a less frenetic performance on Wall Street overnight.

Inflation fears were put aside for a day as investors bought back into shares to send the Straits Times Index (STI) climbing 0.8 per cent, or 25.98 points, to close at 3,191.16.

Gainers trumped losers 335 to 158, with 1.46 billion shares worth $1.46 billion changing hands.

"Asia-Pacific equities are staging a relief rally after Wall Street stabilised as (Federal Reserve chair) Jerome Powell calmed nerves over potential 0.75 per cent rate rises. The rebound of cryptos and stablecoins also lifted sentiment," said Oanda senior market analyst Jeffrey Halley. "The rally today looks more like a technical rebound after a torrid week than a structural turn in sentiment. As such, it should be taken with a grain of salt."

The STI's top performer was City Developments Limited, which jumped 6.7 per cent to $8.18.

Singtel was at the bottom of the table, down 2.1 per cent to $2.75. The counter - which has topped the STI volume chart every day this week - was again the most active, with 43.8 million shares traded.

In the wider market, Sembcorp Marine was among the most active with 84.9 million shares changing hands as the counter closed 2.2 per cent higher at 9.5 cents. The local banks all rose: DBS Bank rose 0.6 per cent to $31.23; UOB jumped 1.5 per cent to $28.49; and OCBC Bank edged up 0.1 per cent to $11.71.

Key Asian markets also shook off the week's woes yesterday. Hong Kong's Hang Seng charged up 2.7 per cent, Japan's Nikkei 225 climbed 2.6 per cent, the Kospi in Seoul added 2.1 per cent and Malaysian shares rose 0.4 per cent.

The S&P/ASX 200 in Sydney gained 1.9 per cent - its third-best session this year - but was still down for the week.

Wall Street closed down 0.3 per cent overnight while the tech-heavy Nasdaq added 0.1 per cent as bargain hunters stepped in.

Join ST's Telegram channel and get the latest breaking news delivered to you.

A version of this article appeared in the print edition of The Straits Times on May 14, 2022, with the headline S'pore stocks snap losing streak as fears ebb over US Fed rate rise. Subscribe