Singapore, Asia markets end higher on Monday; STI up 0.3%
I'm LongbridgeAI, I can summarize articles.Singapore's Straits Times Index rose 0.3% on Monday, driven by positive regional market trends. DFI Retail Group led gains among blue-chips, while Seatrium was the worst performer. All three local banks closed higher. Regionally, Hong Kong and South Korea indices also gained. Analysts noted industrials underperformed despite macro momentum but expect headwinds to fade, with expectations of a US Fed rate hike in December.
[SINGAPORE] Singapore stocks finished higher on Monday (Sep 21) amid a positive showing by wider Asia markets.
The benchmark Straits Times Index (STI) gained 0.3 per cent or 19.12 points to finish at 5,675.23. Across the broader market, decliners beat advancers 282 to 262 after 1.2 billion securities worth S$1.6 billion changed hands.
DFI Retail Group led the gainers on Singapore’s blue-chip index, rising 3.2 per cent or US$0.10 to US$3.22.
The worst performer among the STI constituents was Seatrium , which fell 3.3 per cent or S$0.07 to S$2.05.
The three local banks all finished higher. DBS added 0.7 per cent or S$0.50 to close at S$77.36, OCBC rose 0.9 per cent or S$0.29 to S$31.67, and UOB was up 0.8 per cent or S$0.32 at S$42.10.
Within the iEdge Singapore Next 50 Index, AEM was the top gainer, rising 5.7 per cent or S$0.54 to S$9.95, while Food Empire was the biggest decliner, falling 10 per cent or S$0.21 to S$1.89.
Key regional indices were positive. Hong Kong’s Hang Seng Index gained 1.2 per cent, South Korea’s Kospi rose 1.7 per cent and the FTSE Bursa Malaysia KLCI inched up about 0.1 per cent.
Alex Rohner, fixed-income strategist at Bank J Safra Sarasin, noted that globally, industrials in the equity space have “substantially underperformed” despite strong macro momentum.
“The beneficiaries from the artificial intelligence build-out have suffered from exhaustion, while airlines and transport took a hit from higher oil and fuel prices,” he said.
However, he believes recent headwinds will fade, at least “partially”, on top of the cycle remaining sufficiently strong in the US and Europe to support industrials.
The analyst also expects another US Federal Reserve rate hike in December, with risks tilted towards more tightening in 2027.
“A resilient US economy and high energy prices have pushed 10-year US Treasury yields above 5 per cent, levels not seen since 2007,” he said.
“Long-term yields are now closer to their fair value, under the assumption that inflation reverts back to target within a reasonable time frame. If inflation fails to converge to target, yields have room to move higher.”
This article was written with the assistance of AI and reviewed by a reporter