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Tue, Nov 03 From 2020-13: 47
SINGAPORE shares extended gains from early in the day along with the rest of Asia on Tuesday afternoon, on expectations of a “blue wave” victory for Democratic candidate Joe Biden in the US presidential election.
The best performance also comes after a Wall Street rally overnight, with the Dow Jones Industrial Average leading the major US indices to close 1.6% higher.
CMC Markets market analyst Kelvin Wong noted that two main catalysts can be attributed to the rebound observed in the US equity market, one of which is short-term technical oversold conditions after the sharp drop. last week on Wall Street. Second, polling averages before the US elections had indicated that Biden was leading incumbent Donald Trump in six key states on the battlefield: Florida, North Carolina, Pennsylvania, Michigan, Wisconsin and Arizona.
On the Singapore stock exchange, the benchmark Straits Times Index (STI) advanced 33.78 points or 1.4 percent to 2,476.91 as of 1.02 pm Tuesday. The winners outnumbered the losers 268 to 111, after some 649.3 million securities worth S $ 466.2 million changed hands.
Among the most traded by volume, Jiutian Chemical gained 0.6 Singapore cents or 7.1 percent to 9.1 cents, with 167.1 million shares traded, while Sembcorp Marine was up 0.6 Singapore cents or 5. , 3 percent to 11.9 cents with 37.7 million shares traded.
The trio of local moneylenders were in the green after the noon break. DBS gained S $ 0.50 or 2.4% to S $ 21.13, UOB added S $ 0.28 or 1.5% to S $ 19.31, while OCBC rose S $ 0.08 or 1% to S $ 8.53.
On Monday, The Business Times reported that Singapore banks’ third-quarter results will come into focus this week, as Malaysia’s loan moratoriums have tightened from automatic qualification to applicable borrower-specific debt holidays from now on. month. In particular, analysts are looking for the impact of late payments at UOB and OCBC, as Malaysia is a key market for both banks.
UOB will kick off the third quarter earnings season on November 4, followed by DBS and OCBC on November 5.
Also bolstering the STI was Sembcorp Industries, which rose 0.07 Singapore dollars or 4.4 percent to 1.65 Singapore dollars. Sembcorp said Monday that it sold its entire stake in its Panama water business, and that the divestment resulted in a net profit of S $ 21 million.
Elsewhere in Asia, South Korea led gains in emerging equity markets on Tuesday, as positive data from global factories and expectations of a win for Biden boosted sentiment in China and other regional markets, Reuters reported.
Shares in Taiwan, Thailand and Shanghai advanced more than 1 percent, while Seoul rose almost 2 percent, sending the MSCI index of Asian stocks excluding Japan up more than 1 percent.
Said Jeffrey Halley, Senior Asia Pacific Market Analyst at Oanda: “Today, the markets will turn around and go into a state of analysis paralysis trying to forecast which asset class will do what under what scenario. My advice is to stick with it. noise aside and enjoy the show, your net worth and blood pressure will thank you. “
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