SINGAPORE (THE BUSINESS TIMES) – Wall Street gains overnight inspired local investors to get back into the market and break two days of losses on Wednesday (June 23).
The more optimistic mood helped the benchmark Straits Times Index (STI) rise 0.3 per cent or 9.42 points to close at 3,118.62. Gainers outnumbered losers 300 to 177 on trade of 1.56 billion shares worth $1.15 billion.
Markets elsewhere mostly closed higher, taking their cue from Wall Street, where major indices rose following dovish testimony by United States Federal Reserve chair Jerome Powell.
Hong Kong’s Hang Seng Index climbed 1.8 per cent, Taiwan’s Taiex rose 1.5 per cent, the Kospi in South Korea gained 0.4 per cent, while Japan’s Nikkei 225 finished little changed.
Australian shares fell 0.6 per cent – the third decline in five days – as Sydney faces new curbs amid a surge in virus cases.
IG market strategist Yeap Jun Rong said Mr Powell provided some comfort for investors by reiterating that inflationary pressures will be transitory and the Fed will be patient in waiting to lift borrowing costs.
He said: “This may help to alleviate some investors’ concerns of having out-of-hand inflation inducing a quicker-than-expected rate hike.”
There were 18 gainers amid the 30 STI constituents, with Yangzijiang Shipbuilding emerging as the top index performer, up 1.5 per cent to $1.38.
Other top gainers on the index were Mapletree Industrial Trust, Ascendas Real Estate Investment Trust and Frasers Logistics & Commercial Trust, with their units climbing 1.4 per cent for the day.
On the broader market, shares of Sembcorp Marine were the most actively traded by volume.
The counter rose 1.1 per cent to 19.1 cents, after 112 million shares worth $21.2 million changed hands.