The Rise of Singapore Shares: A Positive Outlook Amidst Global Uncertainty
On January 7th, the Singapore shares market defied global trends and ended on a positive note, with the benchmark Straits Times Index (STI) gaining 0.2% or 6.33 points to reach 3,828.17. Despite a higher number of losers than gainers in the broader market, with 320 stocks falling compared to 223 rising, a total of 847.1 million securities worth $988.5 million were traded.
Regional Markets Performance
- Hong Kong’s Hang Seng Index closed down 1.2%, signaling a mixed performance in the region.
- South Korea’s Kospi index edged up slightly by 0.1%, showing resilience in the face of global uncertainties.
- The Bursa Malaysia Kuala Lumpur Composite Index saw a modest increase of 0.3%, reflecting stable market conditions.
- Japan’s Nikkei 225 outperformed, climbing 2% fueled by the continuous weakening of the yen.
IG market strategist Yeap Jun Rong highlighted the key role of the weakening yen in driving the Nikkei’s performance. He emphasized the Nikkei’s potential for further growth, given its consistent formation of higher lows and an ascending triangle pattern over recent months.
Local Banking Sector Performance
Singapore’s local banking sector showed strength, with all three major banks closing higher:
- DBS gained 1.3% to reach $44.50
- UOB added 0.7% to close at $37.05
- OCBC expanded by 0.4% to $16.85
Analysts are optimistic about the banking trio’s earnings potential in 2025, driven by higher interest rates and robust wealth management businesses.
Stock Highlights
Seatrium emerged as the top gainer on the STI, rising 2.3% to $2.25. On the other hand, CapitaLand Investment experienced a decline, falling 2.3% to $2.58.
Outside the STI, semiconductor player AEM saw a significant increase of 5.6% to reach $1.71 following the appointment of Mr. Kwek You-Cheer as its new chief financial officer.
For more detailed information, you can refer to the original article from THE BUSINESS TIMES.
Conclusion
Despite global market uncertainties, Singapore shares have shown resilience and potential for growth. The positive performance of the local banking sector and key stocks indicate a promising outlook for the market in the coming months.
FAQs
1. What drove the Nikkei’s outperformance in the regional market?
The continuous weakening of the yen was identified as the key driver behind the Nikkei’s strong performance in the regional market.
2. Why are analysts optimistic about the local banking sector’s earnings potential?
Analysts foresee growth in the banking sector’s earnings in 2025, fueled by higher interest rates and robust wealth management businesses.