STI closes higher on strong manufacturing output numbers

Singapore shares ended in positive territory yesterday, following better-than-expected factory output figures.

The benchmark Straits Times Index (STI) ended 0.34 per cent higher at 3,204.90.

Led by electronics, Singapore's factory output expanded for the fifth straight month last month, growing by 7.6 per cent year on year. It also beat the median estimate of 4.7 per cent in a private-sector Bloomberg poll.

OCBC's head of treasury research and strategy Selena Ling is expecting manufacturing's outperformance to be sustained, partly due to the preceding year's low base amid Singapore's circuit breaker and global lockdowns.

It will be further supported by "green shoots recovery in the global economy, particularly for the major economies of the US and China", she said.

Key regional markets were a mixed bag. Hong Kong's Hang Seng Index shed 0.43 per cent and the Jakarta Composite Index fell 0.87 per cent. Japan's Nikkei 225 rose 0.36 per cent, Seoul's Kospi was up 0.99 per cent and the Kuala Lumpur Composite Index gained 0.94 per cent.

Across the Singapore market, advancers outpaced decliners 316 to 175, with 1.67 billion shares worth $1.30 billion changing hands.

At the top of the blue-chip index was Yangzijiang Shipbuilding, which rose 2.1 per cent to $1.44. It was also the most heavily traded among the STI constituents, with more than 48.9 million shares changing hands.

At the bottom of the table was Sembcorp Industries, which fell 1.8 per cent to $2.17.

Other active counters outside the STI include Jiutian Chemical Group and MM2 Asia. Jiutian Chemical climbed 6.3 per cent to 10.2 cents, with some 168.5 million shares having changed hands. MM2 Asia gained 15 per cent to 6.9 cents, with more than 123.5 million shares traded.