Singapore stocks edge higher, tracking regional bourses; STI up 0.9%

[SINGAPORE] Local shares closed higher on Monday (Dec 22), tracking regional bourses.

The benchmark Straits Times Index (STI) rose 0.9 per cent or 40.51 points to close at 4,610.29. Meanwhile, the iEdge Singapore Next 50 Index rose 0.7 per cent or 9.77 points to 1,444.62.

Seatrium was the top blue-chip gainer, rising 2.9 per cent or S$0.06 to close at S$2.13. The offshore, marine and energy specialist announced on Monday that it had resolved its contract dispute with its buyer, an affiliate of Maersk Offshore Wind. The buyer had agreed to pay the balance of the contract price valued at US$360 million upon delivery of a vessel.

Thai Beverage , which was trading on a cum dividend basis, was the largest decliner on the STI, falling 1.1 per cent or S$0.005 to S$0.455. The beverage distributor was the most actively traded counter on the STI by volume, with 21 million units worth S$9.6 million traded.

The trio of local banks finished higher on Monday. OCBC gained 1.4 per cent or S$0.27 to S$19.82. DBS climbed 1.5 per cent or S$0.83 to S$55.70. UOB rose 0.2 per cent or S$0.07 to S$34.77.

Across the broader market, advancers outnumbered decliners 330 to 222, after 1.1 billion securities worth S$1.3 billion changed hands.

Key regional indices mostly ended higher. Japan’s Nikkei rose 1.8 per cent, while South Korea’s Kospi climbed 2.1 per cent. Australia’s ASX 200 gained 0.9 per cent. Hong Kong’s Hang Seng Index was up 0.4 per cent.

Stephen Innes, managing partner at SPI Asset Management, said that Asian markets are taking their cue from last Friday’s “solid rebound” in US stocks, and a growing belief that the final stretch of the year will be bullish.

He added that the market environment is supported by, among other things, expectations of further interest rate cuts, liquidity from market infrastructure and the absence of a catalyst to force de-risking.

“Volatility will not disappear, especially with artificial intelligence valuation debates simmering beneath the surface, but for now, the market is choosing to look forward rather than flinch,” said Innes.