Across the broader market, 1.4 billion shares worth S$2 billion change hands, with 354 gainers beating 222 losers
SINGAPORE equities joined rallies in Asian markets on Friday (Aug 30) after positive US economic data was released on Thursday night.
The benchmark Straits Times Index (STI) climbed 1.1 per cent or 38.46 points to 3,442.93.
Across the broader market, 1.4 billion shares worth S$2 billion changed hands, with 354 gainers beating 222 losers.
On Thursday, after Asian markets closed, initial claims for state unemployment benefits in the US fell 2,000 to 231,000 for the week ended Aug 24.
Regional indices also ended higher on Friday. Japan’s Nikkei 225 gained 0.7 per cent, Hong Kong’s Hang Seng Index rose 1.1 per cent and South Korea’s Kospi Composite Index added 0.5 per cent. The Bursa Malaysia Kuala Lumpur Composite Index expanded 1.5 per cent.
On the STI, Sembcorp Industries rose 4.4 per cent or S$0.21 to S$4.93. Conversely, DFI Retail Group lost ground, retreating 1.1 per cent or US$0.02 to US$1.86.
The trio of local banks all rose. UOB added 1.1 per cent or S$0.34 to S$31.39, DBS increased 1.5 per cent or S$0.55 to S$36.36 and OCBC grew 0.8 per cent or S$0.12 to S$14.55.
In a note on Friday, RHB head of equity research Shekhar Jaiswal said investors in the Singapore market should start looking for yields among companies that offer sustainability or growth in earnings or dividends.
Singapore banks have delivered year-to-date strong share price returns, and “we now view them more as yield rather than growth stocks”, he said. He added that investors could “position more aggressively in real estate investment trusts” as interest rate cuts are “around the corner”. RHB Economics expects two rate cuts in 2024.
