STI Climbs 0.2 Percent as Local Sentiment Brightens Despite Mixed Regional Close
Regional markets concluded the trading day on August 28 with mixed results, yet local investors in Singapore showed a distinctly more upbeat mood as they headed into the weekend.
While the overall performance was modest, this positive local sentiment was sufficient to lift the Straits Times Index (STI) by 0.2 percent, or 8.21 points, closing the session at 4,253.78.
However, a closer look at the market breadth indicated that losers held the upper hand for the day, dispatching gainers by 281 to 232 on what was considered mediocre trade volume, with 1.2 billion securities changing hands for a total value of 1.2 billion dollars.
Among the components of the STI, the top gainer was Thai Beverage, which saw its share price rise by 2.2 percent to 46.5 cents.
Conversely, ST Engineering led the day’s losses, with its stock falling 1.4 percent to settle at 7.66 dollars.
The trio of major local banks all closed the session higher, providing a significant boost to the index’s final standing.
DBS gained 0.3 percent to reach 50.33 dollars, OCBC added 0.5 percent, closing at 16.75 dollars, and UOB was up 0.6 percent, ending the day at 35.30 dollars.
This collective rise among banking heavyweights contributed notably to the overall marginal gain seen in the STI’s performance.
Global Tech Earnings and US Economic Data in Focus
Overnight performance on Wall Street, specifically the robust earnings report from Nvidia, captured much of the global focus, while investors worldwide are now keenly anticipating upcoming US economic data for clues on future interest rate policy.
The primary focus for markets everywhere had been on Wall Street’s overnight session, specifically surrounding the announcement of tech giant Nvidia’s robust second-quarter numbers, which were released after US markets closed.
In addition to the impressive results, Nvidia also announced a substantial sixty billion US dollar stock buyback program.
Although the quarterly results were undeniably strong, they slightly missed the exceptionally high expectations set by analysts and investors.
Nevertheless, investors in New York had broadly anticipated a bumper result, which had already sent key indexes upward accordingly in the pre-announcement trading.
The Dow industrials set the pace for the session, adding 0.3 percent, while the S&P 500 put on 0.24 percent to rack up yet another record high, leaving it a significant ten percent ahead for the year so far.
The Nasdaq also finished in positive territory, rising 0.21 percent.
Investors in Singapore and other global financial centers will now be closely watching the upcoming gross domestic product (GDP) update for the United States.
This economic release is highly anticipated as it will provide crucial signals about the trajectory of US interest rates, which inevitably influences capital flows and market sentiment around the world, potentially affecting the future direction of the STI.
Mixed Performance Across Key Regional Markets
Despite Singapore’s modest gain on the STI, the broader landscape of Asian markets was characterized by mixed performance, with positive movement in some North Asian markets countered by losses elsewhere.
While the Singapore market managed to close on a slightly positive note, the general trend across key regional markets was mixed, reflecting varied local economic conditions and investor responses to global events.
Japan’s Nikkei 225 index recorded a solid gain of 0.7 percent, and the Kospi in South Korea also saw a positive close, rising by 0.3 percent.
In contrast, the Hang Seng index in Hong Kong slid, recording a loss of 0.8 percent for the day.
Meanwhile, the Australian market was primarily focused on the financial results of its national carrier, Qantas.
The airline announced a near-record full-year result, which consequently sent the airline’s stock to new highs and significantly helped the broader ASX 200 index put on 0.2 percent.
This diverse set of results across Asia underscores the complexity of market drivers, where local corporate news and macroeconomic policy expectations—such as those related to the US GDP and interest rates—contribute to unique market movements, even as they all react to the broader global environment.
The resilience of the Singapore market, despite the mixed regional backdrop and the narrow win for losers in the STI trading, suggests underlying strength in the local economy and specific sectors like banking.
