Singapore shares rise on US rate-cut hopes, softer T-bill yields; STI up 0.4%

UOB economist, reacting to the sluggish retail sales print, expects retail sales to stay tepid this year

Local shares rose on Thursday (Jun 5) as softer US hiring data boosted rate-cut expectations amid falling Treasury bets.

Meanwhile, Singapore’s latest six-month Treasury bill cut-off yield hit a new year-to-date low at 2.05 per cent, based on auction results released on the day.

The benchmark Straits Times Index (STI) rose 0.4 per cent or 13.81 points to end at 3,917.69.

In the broader market, gainers beat losers 331 to 177 as a billion securities worth S$1.2 billion changed hands.

Data released on Thursday showed that Singapore retail sales inched up 0.3 per cent year on year in April, easing from the 1.3 per cent growth in March.

The sluggish retail sales growth was weighed down by petrol service stations, consistent with the downtrend in Brent crude oil prices amid lower petrol consumption, as well as challenging retail activities in wearing apparel and footwear, department stores and furniture and household equipment, UOB’s global economics and markets research team wrote in a note.

BT in your inbox

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

The bank’s associate economist Jester Koh wrote: “Retail sales are likely to remain tepid in 2025, although measures in Budget 2025 as well as recent tourism promotion efforts with international celebrities showcasing Singapore’s tourism landmarks in their music videos could lend some support to retail sales activity.”

On the STI, Yangzijiang Shipbuilding led the gains, up 4.5 per cent or S$0.1 at S$2.31. Wilmar International was at the bottom of the list, down 0.7 per cent or S$0.02 at S$3.03.

The trio of local banks ended the day mostly flat. DBS edged up 0.02 per cent or S$0.01 to S$45.02. OCBC was unchanged at S$16.23. UOB was down 0.03 per cent or S$0.01 at S$35.29 on a cum-dividend basis.

Regional markets closed mixed on Thursday. South Korea’s Kospi extended its post-election rally to close up 1.5 per cent.

Japan’s Nikkei 225 dropped 0.5 per cent, while the Bursa Malaysia Kuala Lumpur Composite Index rose 0.7 per cent.

Copyright SPH Media. All rights reserved.