Singapore Shares Soar on China’s Strong GDP Growth
Local Market Overview
On October 18, local shares in Singapore experienced a significant upsurge, driven by regional gains following China’s third-quarter growth surpassing expectations. The benchmark Straits Times Index (STI) rose by 0.4 per cent or 14.94 points to reach 3,640.19. The market saw 360 gainers overpowering 194 losers, with a total trade volume of 1.1 billion securities valued at $1.1 billion.
Top Performers and Laggards
- ST Engineering emerged as the top gainer on the STI, climbing by 2.1 per cent to $4.81.
- On the flip side, Wilmar International experienced a decline of 0.9 per cent, closing at $3.28.
Banking Sector Performance
The local banking sector witnessed positive momentum as DBS rose by 0.5 per cent to $39.70, UOB gained 0.3 per cent to $32.60, and OCBC Bank saw an increase of 0.9 per cent, reaching $15.40 by the end of the week.
Regional Market Trends
- The Nikkei 225 in Tokyo rose by 0.2 per cent, Hong Kong’s Hang Seng surged by 3.6 per cent, and Malaysian shares were up by 0.3 per cent.
- However, the ASX 200 in Australia experienced a 0.9 per cent decline, marking its worst performance in six weeks, despite ending the week 0.8 per cent higher.
Impact of China’s Economic Data
China’s benchmark CSI 300 index soared by 3.6 per cent following the release of the country’s third-quarter gross domestic product data. Additionally, new funding schemes are set to infuse up to 800 billion yuan (S$147.8 billion) into capital markets, further boosting investor sentiment.
Expert Analysis
Mr. Vasu Menon, the managing director of investment strategy at OCBC, highlighted that China’s third-quarter GDP growth of 4.6 per cent exceeded street estimates. However, it was lower than the previous quarter’s 4.7 per cent rise, marking the slowest pace in six quarters. While challenges persist, improvements in September’s retail sales offer a glimmer of hope for consumer spending in China.
Global Market Update
- Wall Street exhibited strength, with the Dow Jones Industrial Average climbing by 0.4 per cent to set a new record.
- The S&P 500 experienced a marginal decline of less than 0.1 per cent, while the Nasdaq gained 0.1 per cent.
In conclusion, the recent market movements reflect a mix of positive economic indicators, particularly driven by China’s resilient GDP growth. As investors navigate through evolving market conditions, staying informed about regional and global trends is crucial for making sound investment decisions.