Bulls And Bears

STI rises as banks, HK market rally

Local oil and gas counters up as well; traders keeping a lookout for US Fed and jobs reports

A sharp rally in banks and the Hong Kong market coupled with rising oil prices sent Singapore shares rebounding 1.17 per cent despite lingering concerns in the wake of North Korea's missile launch.

The key Straits Times Index climbed a hefty 37.54 points to 3,248.71, led by the banks and Hutchison Port Holdings Trust.

DBS Group jumped nearly 2 per cent or 41 cents to $21.10 - the first time it has breached the key $21 resistance level since May 25. That sent United Overseas Bank 1.97 per cent or 45 cents high to $23.35 and OCBC jumping 2.1 per cent or 22 cents to $10.83.

The United States Federal Reserve is due to release minutes today at 2am Singapore time from the June 13-14 Federal Open Market Committee meeting, at which the US central bank raised interest rates for a second time this year.

Coming ahead of a key US jobs report tomorrow, investors will be watching for clues on whether the Fed will begin the asset reduction before another rate hike.

"Oil prices are on an uptrend, while property counters like UOL Group and City Developments underperformed in the face of a rising interest rate environment and as more major central banks turned hawkish," CMC Markets analyst Margaret Yang said.

"Friday's payrolls data will be looked at for signals on the health of the US economy and the employment market," Ms Yang said.

Property counters were mostly lower yesterday, although CapitaLand saw a last minute bout of buying interest, which lifted the stock 0.9 per cent or three cents to $3.54. Far East Orchard edged up 0.5 cents or 0.3 per cent to $1.565. City Developments fell 0.2 per cent or two cents to $10.67, while UOL Group was flat at $7.62.

Meanwhile, local oil and gas plays got a boost from oil, which has rallied more than 10 per cent after falling into a bear market last month.

Keppel Corp gained 0.5 per cent or three cents to $6.37, Sembcorp Marine rose 1.2 per cent or two cents to $1.69 and Sembcorp Industries climbed nearly 1 per cent or three cents to $3.16. KrisEnergy jumped 5 per cent or 0.6 cent to 12.5 cents; Ezion Holdings gained 2.1 per cent or 0.5 cent to 24 cents.

Among the most actively traded pennies were Jiutian Chemical, which surged 23.5 per cent or 0.4 cent to 2.1 cents on trades of 73.4 million shares.

Disa jumped 8.3 per cent or 0.1 cent to 1.3 cents on turnover of 63.7 million shares. Jadason Enterprises rose 2 per cent or 0.2 cent to 10.2 cents on 52.6 million shares traded. Addvalue Technologies rose 1.9 per cent or 0.1 cent to 5.2 cents on 49.4 million shares done.

Sanli Environmental jumped 8.2 per cent or 2.5 cents to 33 cents, after it said it secured four new engineering, procurement, construction and maintenance contracts worth $26 million. Noble Group lost 1.1 per cent or 0.5 cent to finish at 47 cents.

A version of this article appeared in the print edition of The Straits Times on July 06, 2017, with the headline 'STI rises as banks, HK market rally'. Print Edition | Subscribe