STI Climbs 1% as Regional Markets Rally
Singapore shares extended their winning streak to a fifth consecutive session on Monday, with the Straits Times Index (STI) rising 33.92 points (1.1%) to close at 3,093.11. The local market mirrored Wall Street’s Friday rally and saw optimism in most regional bourses, despite weak manufacturing data from China.
FEDERAL RESERVE AND GLOBAL OUTLOOK
Market sentiment was buoyed by hopes that the US Federal Reserve may soon ease the pace of its monetary tightening. Analysts anticipate a 75-basis-point rate hike at the upcoming November meeting but are focused on potential signals for a slower pace in December.
DWS US economist Christian Scherrmann noted, “While a significant November hike seems certain, the Fed has hinted that rate hikes take time to show their effects, possibly setting the stage for recalibration.”
Meanwhile, the Bank of England is also expected to implement a significant rate hike this week to combat rising inflation.
LOCAL MARKET PERFORMANCE
A total of 1.82 billion securities worth S$1.68 billion were traded on the Singapore Exchange, with gainers outpacing losers (292 up, 247 down). The rally was led by banking stocks, with UOB (U11) gaining 1.14% on the back of record-high Q3 earnings reported last week.
CORPORATE EARNINGS HIGHLIGHTS
Raffles Medical Group (BSL): Posted a 62.1% year-on-year surge in Q3 net profit to S$38.3 million, supported by a 7% revenue increase. Its shares rose S$0.06 (4.7%) to close at S$1.33.
Wilmar International (F34): Reported a 35% jump in Q3 net profit to US$766 million, driven by strong sales in feed, industrial, and food products. The counter climbed S$0.28 (7.8%) to S$3.88.
REGIONAL TRENDS
Most regional markets, including Japan, South Korea, Taiwan, Australia, and Malaysia, closed higher. However, China and Hong Kong bucked the trend, weighed down by weak economic data.
Investors now await further developments from central banks and corporate earnings reports, with cautious optimism driving market movements.
