Singapore shares end week slightly higher, STI up 0.1%

SINGAPORE – Robust corporate earnings and encouraging economic data from global markets spurred local investors to nudge the bourse here into the black on Friday, although it was a close call.

The already shaky optimism here was likely tempered by the mixed Wall Street results overnight.

The Dow Jones Industrial Average advanced for the ninth straight session – its longest winning run since September 2017 – but the S&P 500 declined 0.7 per cent and tech-centred Nasdaq dived 2.1 per cent on concerns about the sector amid a sell-off in Tesla shares.

The benchmark Straits Times Index (STI) responded by inching up 0.1 per cent or 3.92 points to close at 3,278.30, with gainers outpacing losers 306 to 241, after 1.2 billion securities worth $862.3 million changed hands.

Saxo market strategist Charu Chanana noted that big tech companies have a tough task of not just meeting expectations, but also justifying the stretched valuations for positive market sentiment to continue.

“They could bring a make-or-break moment for the recent equity rally. Still, the themes of softening inflation and a potential end of tightening from the Fed (and other central banks) are supportive of further gains in equities,” she said.

“But any disappointment from the big-tech earnings could mean a rotation into cyclicals and other quality stocks that have far more reasonable valuations.”

The three lenders were among the top gainers on the STI: UOB rose 0.7 per cent to $28.62; DBS Bank 0.6 per cent to $32.74; and OCBC Bank 0.4 per cent to $12.69.

Singapore Exchange was also among the big winners, adding 0.7 per cent to $9.55. Jardine Matheson Holdings was the top loser, falling 0.6 per cent to US$49.40. Seatrium, which fell 1.4 per cent to close at 14.5 cents, was the most actively traded counter, with 221 million shares changing hands.

Other heavily traded stocks included Biolidics, Marco Polo Marine and Genting Singapore.

THE BUSINESS TIMES