STI snaps 3-day red streak, jumps 0.9% on upbeat US retail data

SINGAPORE – Local shares snapped a three-day losing streak on Thursday after investors took heart from a string of upbeat data from the United States.

A key figure pointing to strong retail sales was especially welcome as it reassured markets that the economy was holding up well amid higher interest rates.

The mood change helped send the Straits Times Index (STI) jumping 30.41 points, or 0.9 per cent, to 3,311.23.

In the broader market, gainers trounced losers 327 to 226 on trade of 1.3 billion shares worth $1 billion.

Key gauges across the region also rebounded, reversing earlier losses, as traders shrugged off rate rises, and focused on the underlying strength in US consumer demand.

Australia stood out, with the bourse up 0.8 per cent, its strongest showing in a month, after a rise in unemployment suggested that rate hikes might be moderated.

Gains here were led by the three banks, UOB, DBS and OCBC.

Sembcorp Marine inched up 0.7 per cent to 13.6 cents, and was the day’s most active, with 79.4 million shares traded. More than 95 per cent of the group’s shareholders backed a mammoth merger with Keppel Offshore & Marine.

Marco Polo Marine was another active counter, with 30.3 million shares done. The integrated marine logistics firm reported a gross profit of $6.6 million for the first quarter, up 154 per cent as revenue nearly doubled to $24 million. It cited continuous growth in both the shipyard and ship-chartering segments for the improvement. The counter rose 2.3 per cent to 4.4 cents.

Another actively traded counter was Singtel, with 23.3 million shares traded. The telco reported a third-quarter net profit of $532 million – down 28 per cent. The previous year’s bottom line was boosted by a net exceptional gain from the partial divestment of Indara, formerly known as Australia Tower Network. The stock rose 0.8 per cent to $2.47. THE BUSINESS TIMES