Banking stocks lead the rally as DBS reports strong Q1 earnings, lifting market sentiment despite global headwinds.
SINGAPORE: Singapore shares started Thursday on a positive note, with the Straits Times Index (STI) climbing 14.91 points, or 0.5%, to reach 3,307.6 as of 9:01 am, according to The Business Times.
While the broader market saw 74 losers compared to 49 gainers, trading activity remained robust. A total of 68.7 million securities valued at S$106.2 million were traded during the morning session.
Among the most actively traded stocks by volume, Seatrium fell 1% to S$0.097 with 31.9 million shares exchanged. Meta Health experienced a sharper 10% drop to S$0.009 with 2.5 million shares traded. Thai Beverage also slipped 1%, closing at S$0.49 after 1.9 million securities changed hands.
Banking stocks were the highlight of the session, posting strong gains. DBS surged 2.5%, adding S$0.86 to reach S$35.76. OCBC rose 0.9% to S$14.38, while UOB gained 0.8% to close at S$30.65.
The gains came on the heels of DBS’s announcement of a 15% year-on-year increase in first-quarter net profit, reaching S$2.95 billion. The figure exceeded analysts’ consensus of S$2.5 billion from a Bloomberg survey. Adjusted for exceptional items, net profit stood at S$2.96 billion.
Global Market Overview
Despite Singapore’s upbeat start, global markets painted a mixed picture. On Wall Street, stocks ended Wednesday’s session mostly lower. The Nasdaq Composite and the S&P 500 each fell 0.3%, closing at 15,605.48 and 5,018.39, respectively. The Dow Jones Industrial Average edged up by 0.2%, settling at 37,903.29.
The declines followed Federal Reserve Chair Jerome Powell’s announcement to maintain interest rates at current levels, with indications that further rate hikes are unlikely in the near term.
In Europe, the Stoxx 600 index faced a 0.8% decline, closing at 504.31 on the back of weaker-than-expected earnings from major automobile manufacturers.
While global uncertainties persist, Singapore’s banking sector and broader STI gains provided a positive note for local investors to start the day.
