STI edges up despite Trump's stimulus blow

Falls on Wall Street overnight in the wake of United States President Donald Trump's surprise move to suddenly call off talks on a new economic relief deal did not seem to worry local investors too much yesterday.

A collective decision to accentuate the positive nudged the Straits Times Index (STI) up 0.36 per cent, or 9.1 points, to 2,538.36, in line with some regional key indices. Gainers left the losers behind 201 to 187, with 1.01 billion shares worth $921.5 million changing hands.

The local performance likely defied the Wall Street gloom because many believe a US stimulus plan is inevitable.

Oanda analyst Edward Moya said Mr Trump's decision only delays a deal: "Fiscal stimulus will happen, and Wall Street is still counting on a blue wave (of Democrats winning across the board) that will deliver a huge spending plan."

Oil prices tumbled after the Trump announcement, with investors worried about the impact on US demand, while data showing a jump in stockpiles there added to the concerns.

Back home, Venture Corp was one of the STI's top performers, gaining 2.92 per cent to $20.46.

DBS Group Research recommended on Tuesday that investors maintain their exposure to technology, and cited Venture as one of the beneficiaries of a powerful shift in structural demand to information technology infrastructure, 5G and data centres. It wrote: "We like Venture for its business diversification and its riding of the technology developments in various industries. Essential orders (medical and semiconductor) are expected to drive second-half earnings in 2020 and new product initiatives in 2021."

CapitaLand Commercial Trust was at the bottom of the STI's performance table, down 1.78 per cent at $1.66, despite trading cum dividend and cum entitlement.

The STI's most heavily traded was Thai Beverage, which ended 1.68 per cent lower at 58.5 cents with 33.85 million shares.

Regional markets were generally up. Australia's S&P/ASX 200 gained 1.25 per cent - its best close in five weeks - after the federal budget earmarked billions of dollars to help revive the economy. Hong Kong's Hang Seng Index rose 1.09 per cent and South Korea's Kospi gained 0.89 per cent to extend its rally for the sixth straight session.

But the Nikkei 225 in Tokyo declined 0.05 per cent, while Malaysian stocks lost 1.32 per cent.

Mainland Chinese markets were closed for a public holiday.

• Additional information from Agence France-Presse