[SINGAPORE] Local stocks ended higher on Friday (May 9), as investors reacted positively to news of the US striking a trade deal with the UK – the first after President Donald Trump announced sweeping tariffs worldwide.
The benchmark Straits Times Index (STI) rose 0.7 per cent or 27.94 points to 3,876.16. Across the broader market, gainers outnumbered losers 272 to 206, after 810.1 million securities worth S$1.1 billion changed hands.
News of the US-UK deal resonated positively across regional financial markets. The Hang Seng Index rose 0.4 per cent, the Nikkei 225 gained 1.6 per cent, and the FTSE Bursa Malaysia was up 0.2 per cent.
But Ipek Ozkardeskaya, senior analyst at Swissquote Bank, questioned if the deal was significant – while the UK managed to cut tariffs on cars and steel, its tariff rate was unchanged at 10 per cent.
Sentiments also remain fragile, she said, as enthusiasm was dented by questions over the greatness of the deal and the challenges ahead.
“Trump’s enthusiastic announcement, complete with a lot of capital letters, helped inflate sentiment, making this US-UK deal feel bigger than it actually is,” she said.
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“In summary, yesterday’s price action suggests that investors are eager for good news and react positively – even if the news isn’t that great. It’s all in how it’s delivered – and apparently, that’s all that matters,” she added.
On the STI, ST Engineering was the top gainer, rising 1.6 per cent or S$0.12 to S$7.63.
Jardine Matheson Holdings was the biggest decliner, falling 1.6 per cent or US$0.75 to US$46.49.
The local banks ended higher. DBS gained 1.4 per cent or S$0.62 to S$43.71, OCBC rose 0.4 per cent or S$0.07 to S$16.23, and UOB was up 0.8 per cent or S$0.28 to S$34.83.
