Bulls And Bears

STI rises on back of modest overnight rebound by US stocks

Benchmark finishes week with 4 days of gains, just 1 day of loss * Jardine Matheson largest gainer; Dairy Farm continues its descent * Regional markets end mixed on relatively data-light trading day

The Straits Times Index (STI) gained 36.01 points, or 1.3 per cent, to close at 2,813.01 yesterday, on the back of a modest overnight rebound by United States stocks that was led by tech stocks.

On the local bourse, about 2.78 billion shares worth $1.52 billion changed hands, with gainers outnumbering losers 322 to 125.

The index's largest gainer was Jardine Matheson, which added 4.8 per cent to US$53.68, following a series of share buybacks by the firm.

Retailer group Dairy Farm International continued its descent, finishing 1.84 per cent lower at US$4.27.

Oceanus was the most active counter of the day, trading strong with a volume of 642.7 million shares, as it added 22.22 per cent to close at $0.022. The stock has been rallying since Nov 9, when the seafood and consumer goods firm posted its highest revenue since FY2011 for the nine months ended Sept 30.

Blumont also saw high trading volume, with 302.9 million shares changing hands as its share price added 75 per cent to $0.007, after an offer for the firm was made this week but at an approximately 80 per cent discount.

Over the week, the STI gained 3.75 per cent, with four days of gains and just one day of loss.

Around the region, markets finished mixed on the relatively data-light trading day. Shanghai added 0.44 per cent, while the Hang Seng rose 0.36 per cent. Malaysia's KLCI also added 0.64 per cent, but the Nikkei 225 shed 0.42 per cent.

Investors are keeping an eye on Washington, where talks are due to resume on a new rescue package for the world's top economy.

Oanda analyst Edward Moya said: "A lot will need to go right, but the economic pain of many small businesses... should keep Congress motivated in getting a deal done."

  • Additional information from Agence France-Presse

A version of this article appeared in the print edition of The Straits Times on November 21, 2020, with the headline 'STI rises on back of modest overnight rebound by US stocks'. Print Edition | Subscribe