STI posts modest 0.1% gains even as Delta variant fears persist
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SGX Centre One at Shenton Way.
ST PHOTO: LIM YAOHUI
Anita Gabriel
SINGAPORE (THE BUSINESS TIMES) - Gains on Wall Street overnight spurred by the release of tame inflation data allowed local shares to claw their way into positive territory yesterday.
The better mood among investors sent the Straits Times Index (STI) up 2.80 points or 0.09 per cent to 3,182.80 with 1.54 billion shares worth $1.03 billion changing hands while losers outpaced gainers 243 to 223 up.
IG market strategist Yeap Jun Rong noted that the data out of the US "may help to ease some pressure of having out-of-hand inflation driving a pull-back in monetary policies from the Fed".
The market consensus is that the US Federal Reserve will start to taper its stimulus spending late in the fourth quarter, although the risk appears weighted to an early surprise, said Nomura Research.
Worries over the surge in Delta variant cases cranked up after China partly shut the world's third-busiest container port after a worker became infected, which could risk disrupting global trade.
Asia's key gauges from Japan, China, Hong Kong, Taiwan, South Korea to Malaysia all fell.
Singtel was the day's fourth most active here with 64 million shares worth $151 million done after the telco's quarterly results signalled that it has turned the corner with the easing of Covid-19 curbs. The stock rose 2.6 per cent to $2.37.
Mr Geoff Howie, market strategist at the Singapore Exchange, said Singtel's 7 per cent total return over three weeks or so has outpaced the global telecommunications sector's marginal gains.
Singapore Technologies Engineering rose 1.24 per cent to $4.08.
The defence and tech firm reported a 15 per cent rise in net profit for the first half to $296 million from the same period last year.
Wilmar International added 0.45 per cent to $4.51. The agri giant reported a 23 per cent jump in net profit for the first half to US$750.9 million from a year ago.
RHB Research expects a stronger second half and has kept a "buy" call but revised the target price from $5.75 to $5.45.
