STI on a roll, hits fresh 52-week high to buck regional trend

SINGAPORE – Local investors defied the wary sentiment seen on Wall Street and around the region to drive the local market to a 52-week high for the second day running.

The Straits Times Index (STI) ended Sept 11 at 3,531.17 points, up 18.5 points or 0.5 per cent. Gainers edged out losers 287 to 235 on trade of 875.3 million securities worth $1.47 billion.

It was a different story elsewhere, with Wall Street turning in a mixed effort overnight on the back of weakness in bank stocks that offset much of the 11 per cent gain booked by Oracle after the software giant posted robust results.

The S&P 500 gained 0.4 per cent, while the Dow Jones Industrial Average fell 0.2 per cent and the Nasdaq Composite rose 0.8 per cent.

Regional markets were even worse off. Japan’s Nikkei fell 1.5 per cent, the Hang Seng in Hong Kong was down 0.7 per cent, Shanghai declined 0.8 per cent and Malaysian shares slumped 1.2 per cent.

The banks also hit Australian shares with falls in the sector, sending the bourse down 0.3 per cent.

Singapore Exchange market strategist Geoff Howie said the local market is drawing institutional investors. Over the eight trading sessions to Sept 10, Singapore booked $619.2 million in net institutional inflow – reversing nearly 50 per cent of the net outflow for the year up to Aug 29.

“Financial services have led the recent surge in net institutional inflow, followed by telecommunications, Singapore real estate investment trusts, industrials and utilities,” he noted.

The most popular stocks among foreign investors over the eight sessions included offshore services provider Seatrium, transport operator ComfortDelGro, conglomerate Sembcorp Industries, Suntec Reit and marine firm Nam Cheong.

The STI’s biggest gainer was bourse operator SGX, which climbed 4.5 per cent to $11.76, its highest in two years. The stock is expected to benefit from market volatility related to the American elections.

THE BUSINESS TIMES