Singapore’s Straits Times Index (STI) advanced 0.6% to close at 3,930.64 points during Wednesday’s trading session, outperforming several regional peers. The move marked the index’s highest closing level in two weeks, as financial and industrial heavyweights led the gainers list.
Market Drivers and Sector Performance
The index’s upward momentum was supported by:
- Banking Strength: DBS Group and OCBC both rose over 1%
- Industrial Rebound: Sembcorp Industries gained 2.3% on contract wins
- Property Recovery: Capitaland Investment added 1.8%
Trading volume reached 1.2 billion shares, slightly below the 30-day average, suggesting selective rather than broad-based participation. The advance came despite:
- Commodity Weakness: Wilmar International declining 0.8%
- Tech Underperformance: Venture Corp. edging down 0.3%
- External Pressures: Mixed overnight performance on Wall Street
Regional Context and Economic Backdrop
The STI’s performance aligned with:
- ASEAN Peers: Malaysia’s KLCI up 0.4%, Indonesia’s JCI rising 0.7%
- Policy Expectations: MAS maintaining monetary policy settings last week
- Tourism Recovery: Changi Airport passenger traffic reaching 90% of pre-pandemic levels
Analysts noted the index has now recovered half of its May losses, with technical indicators suggesting potential for further upside toward the 4,000 resistance level. Market participants will monitor:
- June export data due Friday
- Second-quarter GDP previews next week
- U.S. inflation figures for global rate cues
The advance leaves the STI up 3.2% year-to-date, trailing the MSCI Asia Pacific Index’s 5.8% gain but outperforming Hong Kong’s Hang Seng Index, which remains negative for 2024. Banking stocks accounted for 45% of the index’s point gain, reinforcing their dominant weighting and influence on Singapore’s benchmark.
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