Reporter
Bookmark & Share
STOCKS here surged at the start of the holiday-shortened trading week yesterday, snapping a four-day losing streak, as investors were buoyed by data showing that the economy rebounded even faster than earlier thought in the second quarter.
The Straits Times Index ended 47.95 points, or 1.9 per cent, higher at 2,597.30, after rising as much as 2.3 per cent earlier in the day.
That reversed four straight days of losses from Tuesday to Friday last week, which saw the bluechip index end the week 4.1 per cent lower.
The government said yesterday that Singapore's economy expanded at a seasonally adjusted, annualised rate of 20.7 per cent in the second quarter compared to the first three months of the year, faster than its earlier estimate of 20.4 per cent.
The announcement was a welcome surprise - many economists had expected that the advance estimate released last month would be revised to show slower, not faster, growth - and investors reacted accordingly.
Banks, whose fortunes are closely tied to the health of the broader economy, were among the biggest index movers yesterday, though most other STI members also contributed to the rise in the index.
Of its 30 component stocks, 24 rose while four fell and two ended unchanged.
OCBC Bank was the biggest index mover, ending 3.6 per cent higher at $7.70 and lifting the STI by 7.5 points.
Rivals United Overseas Bank and DBS Group also ended the day with gains; UOB rose 2 per cent to $16.60, while DBS finished 0.6 per cent higher at $12.92.
All three banks reported higher-than-expected net profit for the second quarter last week, prompting analysts to raise their estimates of the banks' future earnings.
Other heavyweights pushing the index up were telco SingTel, which rose 1.9 per cent to $3.23, and palm oil group Golden Agri-Resources, which jumped 11.8 per cent to end at 47.5 cents.
Golden Agri was also the biggest percentage gainer among the STI members, and by far the most heavily traded counter in the overall market yesterday, with 333.4 million shares changing hands.
Gaming firm Genting Singapore, the second biggest percentage gainer among the blue chips, was also heavily traded. It ended 6.1 per cent higher at 86.5 cents, with 166.3 million shares changing hands.
Yesterday's rebound in equities was also evident in the broader market.
The FTSE ST All-Share index, which tracks 263 of the most liquid stocks here, rose 1.8 per cent, while all 13 FTSE ST industry sector indices ended higher.
The consumer goods index, which tracks 40 stocks including palm oil firms Wilmar International and Indofood Agri Resources, rose the most, ending 4.3 per cent higher. Wilmar, an STI component, rose 2.6 per cent to $6.20, while Indofood Agri, which isn't an STI member, ended 9.9 per cent higher at $1.67.
The FTSE ST Catalist Index that tracks stocks listed on the second board rose 1.9 per cent.
Overall, gainers outnumbered losers 292-139, with 439 counters unchanged, excluding warrants and bonds, whose prices sometimes move in the opposite direction of a company's share price.
Volume in the overall market rose to 2.15 billion units worth $2 billion, compared with 2.01 billion units worth $1.85 billion last Friday, excluding shares traded in foreign currencies.
Elsewhere in the region, most other major equity indices also rose, building on gains on Monday, when the Singapore market was shut. Hong Kong's Hang Seng Index climbed 0.7 per cent to 21,074.21, while Japan's Nikkei-225 index ended 0.6 per cent up at 10,585.46.
Search Property News
