Singapore shares rise amid mixed regional showing; STI up 0.4%

Across the broader market, gainers beat decliners 333 to 224 after 2.1 billion shares change hands

The Straits Times Index (STI) extended its upward trajectory on Monday (Jul 21) amid a mixed performance in regional markets.

The benchmark index gained 17.63 points or 0.4 per cent to close at a new high of 4,207.13, buoyed by the Monetary Authority of Singapore’s (MAS) announcement that it has appointed three asset managers to kick off a S$5 billion investment fund initiative announced by authorities earlier this year.

Across the broader market, gainers beat decliners 333 to 224 after 2.1 billion shares worth S$1.4 billion changed hands.

Among the blue-chip stocks on the STI, Frasers Logistics and Commercial Trust emerged as the top gainer on Monday. The counter rose 3.5 per cent or S$0.03 to close at S$0.88.

The worst performer was Wilmar International, which fell 1 per cent or S$0.03 to finish at S$3.02.

Thai Beverage was the most actively traded constituent stock. The counter closed flat at S$0.475 with some 51 million shares traded.

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Noting the “huge rally underway” for small- and mid-cap stocks in Singapore, Phillip Securities head of research Paul Chew believes this could be “just the first wave of re-rating” for undervalued stocks.

“Frankenstein is awake,” Chew said. “The second wave could be news of the MAS S$5 billion Equity Market Development Programme being deployed in phases. The actual deployment of the funds will carry the market another leg.”

The market could be further lifted by strong corporate results in the upcoming earnings season, he added.

Regional indices ended the day mixed. The FTSE Bursa Malaysia KLCI dipped 0.1 per cent, and Australia’s ASX 200 fell 1 per cent. Hong Kong’s Hang Seng Index and South Korea’s Kospi, meanwhile, were each up 0.7 per cent.

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