SINGAPORE - Local traders shrugged off concerns over the turmoil in the banking sector and broader inflationary pressures on Monday, focusing instead on opportunities in the market.

The benchmark Straits Times Index (STI) ended the first trading day of the week with a gain of 0.8 per cent to 3,239.03. Daily turnover came in at about 1.6 billion securities worth a collective $1 billion, with advancers narrowly beating out decliners 297 to 282.

Across the region, a number of stock markets ended the day in the red. The Hang Seng Index shed 1.8 per cent, while the Bursa and Kospi each lost 0.2 per cent. The Nikkei 225, however, added 0.3 per cent.

Mr Stephen Innes, managing partner at SPI Asset Management, said: “So far, it’s been comparatively calm in markets to start the week, as investors better understand the problems facing American banks today are not remotely similar to the subprime mortgage crisis when underwater borrowers defaulted on loans en masse.

“The good news for markets is the Federal Open Market Committee moves less gradually during recessions. If things got ugly, one could expect the US Federal Reserve to cut twice the speed of the distance effectively travelled to hike.”

Jardine Matheson Holdings was the biggest gainer on the Singapore bourse by value, rising 1.1 per cent to US$48.17.

The three local banks were also among top gainers. They traded on a cum-dividend basis on Monday.

Electric vehicle player Nio was the biggest decliner, shedding 1.5 per cent to US$9.10.

Sembcorp Marine was the most heavily traded counter on Monday, with some 319.7 million shares changing hands. The stock rose 1 per cent, or 0.1 cent, to end the day at 10.5 cents. THE BUSINESS TIMES