SINGAPORE – Singapore shares extended the previous day’s gains on Feb 16, staying in positive territory throughout the trading session, including during Deputy Prime Minister and Finance Minister Lawrence Wong’s Budget 2024 speech.
The Straits Times Index advanced 45.25 points or 1.4 per cent to 3,221.94, buoyed partly by overnight gains on Wall Street as it put behind the mid-week’s inflation jitters following hot US inflation data. The key stock index had a strong holiday-shortened week, gaining 84 points or 2.7 per cent.
Singapore’s key exports posted a double-digit jump in January, far exceeding market expectations. The latest data validates the ongoing narrative of the Singapore economy’s continued recovery.
Some of the key measures under Budget 2024 included support for businesses and households facing rising cost pressures and several key tax changes.
Apart from Taiwan, most key gauges across the region including Japan, Australia and Malaysia finished higher on Friday.
Asian stocks have capped their fourth consecutive weekly gain, marking the longest winning streak in over a year.
Despite recent weak economic news, such as Japan and Britain slipping into recession at the end of 2023 and United States retail sales declining more than expected in January, the regional and global interest rate environment remains supportive for risk markets, said Mr Stephen Innes of SPI Asset Management.
He added: “Weaker economic indicators could pave the way for relatively looser monetary policy, providing a bullish backdrop for Asian markets, particularly from an interest rate perspective, if not an eventual economic one.”
Across the broader market in Singapore, turnover stood at 2.2 billion securities worth $1.5 billion. Advancers far outnumbered decliners 397 to 203.
DBS Bank rose 54 cents or 1.6 per cent to $33.87 and UOB climbed 43 cents or 1.5 per cent to $29.19. OCBC Bank added 14 cents or 1.1 per cent to $13.26.
SIA Engineering inched up three cents or 1.3 per cent to $2.35. The aircraft maintenance, repair and overhaul giant on Feb 15 released a third-quarter business update which showed continued recovery in operating metrics. OCBC Investment Research said global air travel demand is expected to remain strong although supply chain challenges may persist in the near term.
The research house has a buy on the stock and has maintained a fair value of $2.69.
After falling by over 30 per cent on Feb 15, Prime US Reit rose US$0.18 or nearly 18 per cent to US$0.119 on Friday. The counter was the day’s ninth most active with 22 million units done.
In a note released on Feb 16, DBS Group Research downgraded the counter to “fully valued” and lowered the target price to to US$0.07 from US$0.18.
The research team said it was taking a pre-emptive stance – prior to Prime releasing its results – on a potential domino impact from Keppel Pacific Oak US Reit’s recent actions to suspend distributions for better capital management. THE BUSINESS TIMES
