THE Straits Times Index (STI) continued moving up on Thursday (Nov 7) even as regional indices posted mixed results.
It rose 2 per cent or 70.5 points to 3,673.49.
Across the broader market, decliners outnumbered advancers 306 to 278, after 1.7 billion securities worth S$2.4 billion changed hands.
The trio of local banks rallied on Thursday after Donald Trump’s victory at the US election, with DBS the top gainer on the STI. It rose 6.5 per cent or S$2.55 to an all-time high of S$41.70, on the back of strong third-quarter results.
OCBC was the next top gainer, finishing up 3.8 per cent or S$0.58 at S$15.88. UOB ended 1.9 per cent or S$0.61 higher at S$33.30.
The top loser on the STI was CapitaLand Investment. It was down 3.8 per cent or S$0.11 at S$2.80 as property and real estate investment trusts fell on Thursday.
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Across the region, major indices were mixed. The Nikkei 225 was down 0.3 per cent while the Kospi was mostly flat. The Hang Seng Index was up 2 per cent and the KLCI closed down 0.7 per cent.
Given the STI’s significant exposure to banking stocks, the sector will be a key driver for the performance of the index, said Yeap Jun Rong, market strategist at IG.
He added that gradual rate-cutting should translate to a slower taper in the banks’ net interest margins, and the recovery momentum in their non-interest income will likely also fuel their performance.
“A more than 5 per cent dividend yield remains attractive as well, offering both a growth and income story for investors,” Yeap said.
US tariffs on China may have some secondary impact on Singapore, given its trade-dependent economy. The STI hit highs during the 2018 trade wars, and another round of trade tensions might provoke a similar reaction, which could see stocks touch the all-time high of 3,900, he added.
