STI hits new high

Key Concepts:

• Straits Times Index (STI): Singapore's benchmark stock market index.
• Industrial Stocks: Stocks related to industries like construction, engineering, manufacturing, and transportation.
• Local Banks: Refers to the three major Singaporean banks: DBS, OCBC, and UOB.

Straits Times Index (STI) Reaches 4,000 Mark

The Singapore Straits Times Index (STI) surpassed the 4,000 mark for the first time, reaching 4,005.18 points shortly after the market opened. This exceeded the previous record of 3,991 points set on Thursday. However, the index closed at 3,972.43.

Market Performance

• The Singapore Exchange (SGX) experienced a rise of 0.91%.
• Singtel and ST Engineering saw increases of 0.88% and 0.89%, respectively.
• The three local banks, DBS, OCBC, and UOB, which collectively represent over half of the index, experienced declines. DBS was down by 0.24%, OCBC slipped by 0.46%, and UOB's share price fell by 0.4%.

Role of Industrial Stocks

According to a market observer, industrial stocks, rather than the banking sector, were instrumental in driving the index upward. The industrial stocks in Singapore span multiple industries including construction, engineering, manufacturing, and transportation. Stocks like Lexington and Boustead Projects saw doubling up in their trading, particularly in the first quarter.

Conclusion

The STI's breakthrough above the 4,000 mark was driven primarily by the strength of industrial stocks, offsetting the slight declines in the banking sector. Specific examples like Lexington and Boustead Projects highlight the positive performance within the industrial segment.