STI hits new high with gains across most sectors; closes up 0.5%

SINGAPORE – Local shares hit a new high in trading on March 27 before closing in the black, thanks to solid gains across most sectors.

The positive mood evident all week remained intact to send the Straits Times Index (STI) to as high as 3,991 points in the morning before closing at 3,981.57, up 0.5 per cent or 17.86 points for the day.

Gainers outstripped losers 274 to 218 across the broader market on trade of one billion securities worth $1.4 billion.

The gains here came despite another downbeat session on Wall Street overnight, as tariff fears rattled investors, sending the Nasdaq down 2 per cent, while the S&P 500 lost 1 per cent and the Dow Industrials dipped 0.5 per cent.

Regional indexes were mixed. Hong Kong’s Hang Seng rose 0.4 per cent and Malaysian stocks added 1.2 per cent but the Nikkei 225 in Tokyo lost 0.6 per cent, the Kospi in Seoul fell 1.4 per cent and Australia’s ASX200 retreated 0.4 per cent to snap a five-day winning streak

On the home front, the STI’s top gainer was DFI Retail Group, up 2.1 per cent to US$2.44, while Yangzijiang Shipbuilding was the biggest decliner, down 0.8 per cent to $2.40. The banks rose: DBS added 0.4 per cent to $46.58, OCBC was up 0.8 per cent to $17.38, and UOB advanced 1.1 per cent to $38.26.

ST Engineering and Sembcorp Industries have led gains in the first quarter, with analysts raising their 12-month consensus price targets for both counters, noted Singapore Exchange market strategist Geoff Howie. He said industrials booked the most net institutional inflow in March, bucking the broader net outflows.

Industrials are benefiting from China’s efforts to strengthen regional supply chains, while Asean policymakers continue to bolster economic integration and movement of capital goods within the region.

Mr Howie said: “This has put industrial value chains clearly in the frame, impacting engineering, construction, manufacturing and transportation-related industries.”

THE BUSINESS TIMES