STI up 0.7% as Yangzijiang Shipbuilding leads gains
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Across the broader market, gainers beat losers 347 to 179 after 1.03 billion securities worth $1.29 billion changed hands.
PHOTO: ST FILE
Yong Jun Yuan
SINGAPORE - Singapore shares rallied with their regional peers on Aug 13, as Yangzijiang Shipbuilding led gains on the Straits Times Index (STI).
The counter climbed 14.7 per cent to close at $2.73. The company had earlier posted a 77 per cent rise in profit for the six months ended June 30 to 3.1 billion yuan (S$572 million), as its revenue grew 15 per cent to 13 billion yuan.
In a research note on Aug 13, DBS analyst Ho Pei Hwa remained bullish on the shipbuilder on the grounds of its record-high order backlog, which will boost earnings visibility until 2026.
She said: “Yangzijiang’s improving corporate governance and pivot towards cleaner vessels such as dual-fuel container ships and gas carriers, which now account for about 70 per cent of the order book, could draw more interest from ESG (environmental, social and governance) funds.”
The STI gained 0.7 per cent, or 23.19 points, to 3,258.57. Across the broader market, gainers beat losers 347 to 179 after 1.03 billion securities worth $1.29 billion changed hands.
Of the trio of local banks, OCBC Bank closed flat at $13.83, UOB gained 0.2 per cent to $29.36, and DBS rose 0.4 per cent to $34.12.
At the bottom of the table was Keppel, down 2.5 per cent to $5.80.
Regional markets were also in the black on Aug 13. Japan’s Nikkei 225 Index gained 3.5 per cent, Hong Kong’s Hang Seng Index rose 0.4 per cent, and South Korea’s Kospi Composite Index edged up 0.1 per cent.
Julius Baer head of equity strategy research Mathieu Racheter said equities have become more attractive again, noting that corporates have continued to deliver strong second-quarter earnings.
He added that it is a good time for investors to start putting together an “equity shopping list”. THE BUSINESS TIMES
