Positive Wall Street sentiment boosts Singapore equities, regional markets

SINGAPORE - Singapore equities bounced back on Thursday (June 29), as positive sentiment on Wall Street spilled over into Asia.

The benchmark Straits Times Index (STI) rose 42.95 points, or 1.34 per cent, to 3,258.65. Some 973.1 million shares worth S$1.13 billion were traded across the bourse.

Traders in the United States were cheered by the results of the Federal Reserve's latest annual stress test - where all of the 34 banks had passed - which sent the Dow Jones Industrial Average up by 0.68 per cent.

"The stress test results further strengthened investors' confidence in the economic outlook and health of the financial system," said CMC Markets Singapore market analyst Margaret Yang.

Other markets in Asia fared well too, as a result. Hong Kong rose 1.1 per cent, Shanghai advanced 0.47 per cent and Tokyo put on 0.45 per cent. Jakarta continued to be closed for the holidays.

Much of the gains on the STI Thursday came from the local lenders. United Overseas Bank led the pack with a solid 2.5 per cent or 58-cent gain to S$23.52. DBS Group Holdings rose 2.5 per cent or 50 cents to S$20.86, while OCBC Bank advanced 1.9 per cent or 20 cents to S$10.95.