STI regains half of points lost in Brexit rout
SINGAPORE shares further recouped their post-Brexit losses to end in the black yesterday while most key Asian markets were lifted by bargain hunters.
The benchmark Straits Times Index (STI) put on 26.68 points or 0.98 per cent to 2,756.53
on trade of $1.05 billion in a lively session.
This means the STI has taken back half
the 60 points it lost to the Brexit shock.
Other regional markets showed a similar appetite.
Shanghai rose 0.58 per cent, Tokyo put on
0.09 per cent and Kuala Lumpur added
0.28 per cent. Hong Kong dropped 0.27 per cent.
In Britain, London's FTSE 100 shot up over
2 per cent in early trading yesterday.
"The indiscriminate selling after the Brexit vote may create opportunities in assets with positive fundamentals and relative value," BlackRock
global chief investment strategist Richard Turnill
But he added that selectivity and caution remain key, recommending dividend-growth stocks and investment-grade bonds as the safe choice in this uncertain time.
Investors here clearly shared the sentiment
as they piled into telco stocks and trusts for
their typically stable yield.
StarHub was the top gainer among the 25 STI component stocks that rose yesterday, ahead 16 cents or 4.47 per cent at $3.74.
Singtel was not far behind, up 10 cents or
2.57 per cent at $3.99 with 43.3 million shares traded - one of the top actives. Outside the STI,
M1 rose seven cents or 2.78 per cent to $2.59.
Ascendas Real Estate Investment Trust put on
six cents or 2.53 per cent to $2.43. CapitaLand Mall Trust added five cents or 2.43 per cent to $2.11.
Singapore Press Holdings was also up, gaining eight cents or 2.16 per cent to $3.78.
Singapore Exchange was among the gainers, closing up six cents or 0.82 per cent at $7.41.
SGX equities and fixed income head Chew Sutat said on Monday that the firm sees "green shoots"
in the second half despite the uncertain market conditions, as the bourse's efforts in building a comprehensive capital platform and reaching out
to retail investors continue to pay off.
Only four counters dropped yesterday, led by Thai Beverage, which closed down 1.5 cents or
1.66 per cent at 89 cents. ComfortDelGro pared
one cent or 0.37 per cent to $2.67.
Outside the STI, punters' favourite Spackman Entertainment rose 0.7 cent or 7.07 per cent to
10.6 cents, with 34.2 million shares traded.
In the consumer sector, Sheng Siong Group added one cent or 1.16 per cent to 87.5 cents.
The supermarket operator was highlighted by OCBC analyst Jodie Foo as a counter to buy,
again due to its defensive nature amid the
uncertain Brexit environment.
"With its current earnings solely exposed to Singapore, there should not be material immediate implications from Brexit," Ms Foo said.
"We believe the stock still retains stability in its market share and margins, and with an around
4 per cent dividend yield."