STI inches up on Friday, tracking regional indices
[SINGAPORE] The Straits Times Index (STI) edged up on Friday (May 23), tracking regional indices.
The STI closed up 0.1 per cent or 2.33 points at 3,882.42.
Across the broader market, advancers outnumbered decliners 232 to 213, after 1.2 billion shares worth S$1.2 billion changed hands.
The trio of local banks closed higher on Friday, with DBS up 0.6 per cent or S$0.27 at S$44.46, and UOB up 0.1 per cent or S$0.05 at S$35.32.
OCBC closed 0.9 per cent or S$0.15 higher at S$16.29, and was the top gainer on the STI.
The biggest loser was Yangzijiang Shipbuilding, which ended 3.7 per cent or S$0.08 lower at S$2.06.
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Across the region, major indices closed mostly higher, with the Nikkei 225 up 0.5 per cent, and Hong Kong’s Hang Seng Index increasing 0.2 per cent. The KLCI similarly rose 0.6 per cent, while the Kospi closed down 0.1 per cent.
Stocks are recovering from a selloff sparked by Wednesday’s Treasury auction, as the bond vigilantes approved of the taxation Bill passed by the US House of Representatives, said Jose Torres, senior economist at Interactive Brokers. More expenditure reductions were offered in this new Bill compared with the original, appeasing fiscal hawk hardliners.
He added that equities are also being bolstered by the flash purchasing managers’ index data in services and manufacturing, with yields finding support from the Opec+ discussions favouring further oil production increases.
“Washington (was) the greatest source of optimism for equity and fixed-income bulls on Thursday, however, as investors (scooped) up offensive stocks sporting growth and cyclical characteristics, Treasuries across the curve, greenback futures, Bitcoins and forecast contracts,” said Torres.
