Bulls And Bears
STI up 1.1% amid moves to loosen Covid-19 curbs
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Yong Jun Yuan
Follow topic:
- Sats tops benchmark index; SIA most traded counter
- Citi analysts expect revival of interest in 'reopening plays'
- Region mixed: Japan up; S. Korea, Hong Kong down
Moves to loosen Covid-19 restrictions were just the tonic for local investors, who sent the market rising yesterday.
The prospects of the curbs easing helped the Straits Times Index (STI) climb 1.1 per cent, or 35.44 points, to 3,399.70. In the broader market, 1.86 billion shares worth $1.65 billion were traded, with gainers beating losers 297 to 165.
Citi analysts said the news that Covid-19 curbs are being eased should revive investor excitement in so-called "reopening plays".
They noted that mobility plays like Sats, Singapore Airlines (SIA) and ComfortDelGro, leisure and tourism counters like Genting Singapore and Far East Hospitality Trust, and commercial and office Reits like CapitaLand Integrated Commercial Trust and Keppel Reit could see stronger investor interest.
Notably, SIA was the most traded counter, climbing 4.3 per cent to $5.40 after 33.3 million shares changed hands.
Sats was the STI's leading performer, adding 5 per cent to $4.17.
DBS climbed 1.3 per cent to $35.64, OCBC was up 0.8 per cent to $12.30 and UOB rose 0.4 per cent to $32.03.
Regional markets were mixed. South Korea's Kospi was down 0.2 per cent; the Hang Seng in Hong Kong fell 0.9 per cent, while Japan's Nikkei 225 was up 0.3 per cent; the Jakarta Composite added 0.8 per cent and Kuala Lumpur shares advanced 0.1 per cent, the same rise recorded in Australia.
The market's buoyant showing came despite oil shooting higher again - up 1.5 per cent to US$123.36 a barrel - with US President Joe Biden and European leaders set to impose fresh sanctions against Russia.
Wall Street was also down markedly overnight, with the Dow Jones and the Nasdaq both falling 1.3 per cent. Gold prices were unchanged as the US dollar hovered near multi-year peaks, offsetting support from an escalation in the Ukraine crisis.
