Bulls And Bears

STI up 0.6% on positive investor sentiment

One reason is China's uplifting PMI in June; STI's top performer SGX surges 3.5%

Local shares tracked Wall Street's overnight gains on the back of better-than-expected economic data to end in the black yesterday.

The Straits Times Index (STI) ended the day at 2,589.91, up 15.81 points or 0.6 per cent.

Gainers outpaced losers 236 to 193 as 2.34 billion shares worth $1.6 billion changed hands.

The boost in investor sentiment was in part due to China's June Purchasing Managers' Index (PMI) data, which beat forecasts to hit a three-month high in May.

Mr Stephen Innes, Axicorp's chief global market strategist, said: "The China PMI lends further weight to the argument that a global cyclical recovery is well under way, which should boost global stock market sentiment."

He added that last week's worries about a second wave of coronavirus infections seem to be overshadowed by the "robust reopening narrative".

The top-performing STI counter was the Singapore Exchange (SGX), which rose 3.5 per cent to $8.34.

RHB Securities maintained its "buy" call on SGX yesterday, with an unchanged target price of $9.20.

The research house is bullish on SGX's move to acquire the remaining 80 per cent of cloud-based foreign-exchange trading platform BidFX for about US$128 million (S$179 million) in cash.

At the bottom of the table was Sembcorp Industries, which fell 3.8 per cent to $1.75.

Singtel remained among the most heavily traded counters from the start of trading, edging up 0.4 per cent to $2.46 with more than 35 million shares changing hands.

Elsewhere in the Asia-Pacific region, benchmark indices reversed Monday's losses to end the day higher.

Hong Kong added 0.52 per cent as traders welcomed upbeat economic data, though they remained cautious after China passed a controversial security law for the city.

The Shanghai index rose 0.78 per cent, while Shenzhen shares jumped 1.88 per cent.

Japan rose 1.33 per cent as investors shrugged off the country's weak economic data released early yesterday, including rising unemployment and poor factory production for May.

"The negative figures were all factored in," IwaiCosmo Securities broker Toshikazu Horiuchi told AFP.

"Investors bought on dips following sizeable declines the previous day."

Additional reporting by Agence France-Presse

A version of this article appeared in the print edition of The Straits Times on July 01, 2020, with the headline 'STI up 0.6% on positive investor sentiment'. Print Edition | Subscribe