STI ends 0.3% higher as fears over US debt ceiling crisis ease

SINGAPORE – Local shares and other major regional bourses recorded modest advances on Thursday, thanks to solid overnight gains on Wall Street that were fuelled by optimism over the debt ceiling talks.

Investors here found their feet after a series of lacklustre sessions, with the Straits Times Index (STI) inching up 8.71 points, or 0.3 per cent, to 3,182.55.

There were 1.4 billion units worth $1.1 billion traded, with gainers trumping losers 326 to 210.

Key gauges across the region also rose, from Japan – a clear outperformer – Hong Kong, Taiwan and China to South Korea, Malaysia and Australia, where higher unemployment numbers eased fears of more rate rises.

The gains followed the rises on Wall Street, which came after the Biden administration said that a deal on raising the debt ceiling could be reached as soon as this week. The S&P 500 closed 1.2 per cent up, the tech-focused Nasdaq added 1.3 per cent and the Dow Jones Industrial Average advanced 1.2 per cent.

Ever Glory United Holdings, a mechanical and electrical engineering services provider, finished its maiden day on the Catalist at 36 cents – up 64 per cent from its issue price of 22 cents.

Apac Realty inched up 1.7 per cent to 58.5 cents. The real estate broker reported a 67 per cent drop in first-quarter net profit to $3 million.

RHB Research said in a report on Thursday that the stock remained well supported on the downside due to its net cash position and healthy yield. The research house expects the property cooling measures announced in April to further dampen resale volume, but added that new sales should see a slight uptick in the second half, supported by more new launches. 

Manulife US Reit rose 5.1 per cent to 14.3 US cents. DBS Group Research cited risks to the stock such as higher vacancy amid a potential recession in the US, as well as rising costs and higher interest rates. THE BUSINESS TIMES