Straits Times Index crosses 4,000 mark for the first time
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The STI hit 4,005.18 points shortly after the market opened, data from the Singapore Exchange showed.
ST PHOTO: LIM YAOHUI
Therese Soh
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SINGAPORE - The Straits Times Index (STI) set an intraday record on March 28 as it crossed the 4,000 mark for the first time in early trading.
The index hit 4,005.18 points shortly after the market opened, data from the Singapore Exchange (SGX) showed. This surpassed its previous intraday record of 3,991, clocked on March 27.
But the rise could not be sustained and the STI ended the day at 3,972.43, down 9.14 points or 0.2 per cent, with around 1.3 billion shares worth $1.3 billion traded.
SGX market strategist Geoff Howie said: “The most recent charge to the new 4,005.18 all-time high coincides with above-trend gross domestic product growth in 2024 at 4.4 per cent, and a cautiously optimistic market outlook for 2025.”
This could indicate positive sentiment for investors, said Daphne Tan, business development director at CMC Markets Singapore.
“The STI breaking 4,000 is a key psychological milestone, which could be interpreted as strong investor confidence, resilient blue-chip performance and a favourable economic climate,” she added.
Noting the index’s new record, SGX said: “Since its inception in 1966, the STI has delivered strong returns to investors, with a total return of 40 per cent over the last three years, (representing a) compound annual growth rate (CAGR) of 11.9 per cent.”
The STI has even surpassed the S&P 500, which has a total return of 31 per cent and a CAGR of 9.4 per cent, the bourse operator noted.
Mr Howie highlighted that the benchmark index maintains one of the highest dividend yields regionally.
Singapore’s trio of banks, which account for more than half the index, “significantly contribute” to the 4.5 per cent indicative yield, and financial services are a cornerstone of the city state’s economy, he said.
However, DBS and OCBC closed down on March 28, reversing an earlier rise. DBS ended 0.2 per cent lower at $46.47, while OCBC dropped 0.5 per cent to $17.30.
UOB, which on March 28 denied allegations of improper conduct
Investment management firm Yangzijiang Financial was the most heavily traded counter by volume. The stock closed up 1.3 per cent at 79.5 cents with 97.3 million shares changing hands.
In a LinkedIn post on March 27, SGX market strategist Geoff Howie noted that ST Engineering and Sembcorp Industries have been leading STI’s charge for the first quarter of financial year 2025.
ST Engineering closed up 0.9 per cent at $6.79, while Sembcorp declined 0.5 per cent to $6.34.
Mr Howie highlighted that both companies have had their 12-month consensus estimate target price revised upwards for the first quarter of financial year 2025.
ST Engineering’s consensus was upgraded from $5.02 to $6.85, and Sembcorp’s was raised from $6.82 to $7.32, he noted.
He said that Singapore’s industrials sector booked the most net institutional inflow in March and bucked broader net outflows.
“This has seen ST Engineering’s average daily turnover (ADT) more than double in first-quarter financial year 2025 from 2024 levels to $42 million,” he added.
Another 30 industrial stocks had their ADT more than double in first-quarter financial year 2025, amid developments across China, the United States and Asean, which have “put industrial value chains clearly in the frame” and affected sectors related to engineering, construction, manufacturing and transportation.
“Industrials are benefiting from China’s efforts to strengthen regional supply chains with services-led growth,” said Mr Howie.
“Simultaneously, coordinated structural policies from the US Treasury, Commerce Department and USTR (United States Trade Representative) are focused on re-industrialising the US. Additionally, Asean policymakers continue to bolster economic integration and movement of capital goods within.” THE BUSINESS TIMES
