Singapore stocks end week higher, in line with regional peers

SINGAPORE – A little less angst among investors surrounding the banking sector and inflation helped local shares join their regional peers to end a rocky week on a slightly more positive note.

The benchmark Straits Times Index (STI) closed up a meagre 0.05 per cent, or 1.72 points, to close at 3,258.90 on Friday, although gainers trumped losers 346 to 213 after two billion securities worth $1.4 billion changed hands.

It was a similar story around the region. The Nikkei 225 in Tokyo was up 0.9 per cent, Hong Kong’s Hang Seng gained 0.5 per cent and the Kospi in Seoul added 1 per cent.

Australian shares enjoyed their best week since January, gaining 0.8 per cent on Friday to allow the index to close 3.2 per cent up for the week and 2 per cent ahead for the quarter.

The increases came after a second straight session of gains on Wall Street, albeit by modest amounts.

Bank of Singapore chief economist Mansoor Mohi-uddin said credit spreads are tightening in the United States, while the greenback is falling on hopes that the Federal Reserve will pivot away from rate hikes to cuts in the second half of the year.

Mr Mohi-uddin expects the US to suffer a recession this year. “We also think Fed rate hikes and quantitative tightening may result in further flare-ups for smaller US banks struggling to attract deposits.”

Jardine Cycle and Carriage was STI’s biggest gainer for the day, rising 2 per cent to $31.28. Tech play Venture Corporation was another top advancer, adding 1.2 per cent $17.67. Both stocks were trading on a cum-dividend basis.

The three local lenders were among the top losers. Sembcorp Marine was the most actively traded, rising 3.5 per cent to 11.9 cents after 784.8 million shares changed hands.

Other heavily traded counters included Rex International, Genting Singapore and Singtel. THE BUSINESS TIMES