STI ends 1.4% higher on broad optimism, Budget boost

SINGAPORE shares extended the previous day’s gains on Friday (Feb 16), staying in positive territory throughout the trading session, including during Finance Minister Lawrence Wong’s Budget 2024 speech.

The Straits Times Index advanced 45.25 points or 1.4 per cent to 3,221.94, buoyed partly by overnight gains on Wall Street as it put behind the mid-week’s inflation jitters following hot US inflation data. The local market’s key barometer had a strong holiday-shortened week, having gained 84 points or 2.7 per cent.

Singapore’s key exports posted a double-digit jump in January, far exceeding market expectations. The latest data validates the ongoing narrative of the Singapore economy’s continued recovery.

Some of the key measures under Budget 2024 included support for businesses and households facing rising cost pressures and several key tax changes.

Apart from Taiwan, most key gauges across the region including Japan, Australia and Malaysia finished higher on Friday.

Asian stocks have capped their fourth consecutive weekly gain, marking the longest winning streak in over a year.

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Despite recent weak economic news, such as Japan and Britain slipping into recession at the end of last year and US retail sales declining more than expected last month, the regional and global interest rate environment remains supportive for risk markets, said Stephen Innes of SPI Asset Management.

He added: “Weaker economic indicators could pave the way for relatively looser monetary policy, providing a bullish backdrop for Asian markets, particularly from an interest rate perspective, if not an eventual economic one.”

Across the broader market in Singapore, turnover stood at 2.2 billion securities worth S$1.5 billion. Advancers far outnumbered decliners 397 to 203. The day’s gains were led by DBS : D05 0% and UOB : U11 0% as well as the Jardine stocks.

DBS rose S$0.54 or 1.6 per cent to S$33.87 and UOB climbed S$0.43 or 1.5 per cent to S$29.19. OCBC added S$0.14 or 1.1 per cent to S$13.26.

SIA Engineering : S59 0%inched up S$0.03 or 1.3 per cent to S$2.35. The aircraft maintenance, repair and overhaul giant on Thursday released a third-quarter business update which showed continued recovery in operating metrics.

OCBC Investment Research said global air travel demand is expected to remain strong, although supply chain challenges may persist in the near term. The house has a “buy” on the stock and has maintained a fair value of S$2.69.

After falling by over 30 per cent on Thursday, Prime US Reit : OXMU 0% rose US$0.018 or nearly 18 per cent to US$0.119 on Friday. The counter was the day’s ninth most active with 22.4 million units changing hands.

In a note released on Friday, DBS Group Research downgraded the counter to “fully valued” and lowered the target price to US$0.07 from US$0.18.

The house said it was taking a pre-emptive stance – prior to Prime releasing its results – on a potential domino impact from Keppel Pacific Oak US Reit’s recent actions to suspend distributions for better capital management.