Singapore stocks end higher in line with region despite weak economic data

SINGAPORE – It was another winning week for local shares – the second in a row – as traders rode on the optimism of a positive session on Wall Street overnight.

The benchmark Straits Times Index (STI) rose 0.5 per cent, or 17.18 points, to close at 3,260.03 on Friday and ahead 2.3 per cent for the week.

Gainers easily outpaced losers 350 to 216 across the broader market after 2.7 billion securities worth $2.6 billion were traded.

The strong performance came despite weaker economic data. Singapore’s non-oil domestic exports fell for the eighth straight month in May, shrinking 14.7 per cent year on year, more than economists had predicted.

IG market analyst Yeap Jun Rong said: “A low-for-longer growth outlook for Singapore seems to be the takeaway, validating the cut in the 2023 growth forecast to 1.4 per cent, from 1.9 per cent previously, from a (Monetary Authority of Singapore) survey this week.”

Sats led the STI gainers, climbing 5.8 per cent to close at $2.74. Other top gainers for the day included Frasers Logistics & Commercial Trust, up 2.4 per cent, and Venture Corp, ahead 2.3 per cent.

Venture Corp was also the top performer for the week – its closing price of $16.09 left it 9.5 per cent higher than last Friday’s close.

Hongkong Land was the top decliner for the week, slipping 2.6 per cent over the five trading days.

Singapore Airlines snapped a 12-day winning streak to end at the bottom of the STI performance table, falling 1.8 per cent to $7.77.

The counter was the most actively traded by value, with 41 million shares worth $319.2 million changing hands.

Elsewhere in the region, Hong Kong and Australia led the gainers, with the Hang Seng Index and the ASX 200 climbing 1.1 per cent.

The increase allowed Australian shares to snap a three-week losing streak with their biggest weekly gain in 10 weeks.

Other key indices in Shanghai, Japan and South Korea rose between 0.6 per cent and 0.7 per cent.

THE BUSINESS TIMES