THE Straits Times Index (STI) rose 0.1 per cent or 3.97 points to 3,225.91 on Monday (Feb 19) amid optimism around how the 2024 Budget could better position local companies.
Across the broader market, losers beat gainers 313 to 253, after 1.62 billion securities worth S$1 billion changed hands.
In a report released on Monday, RHB analyst Shekhar Jaiswal said that the measures announced under the Budget last Friday were comprehensive and help to ensure that Singapore will be able to deliver 2 to 3 per cent in annual gross domestic product growth over the next decade.
He noted that the government is topping up the financial sector development fund by S$2 billion, which should have a marginal net positive impact on banks. “The expectation is that it will not only improve core areas of banking, capital markets, asset management, and insurance, but also build capabilities in new areas like fintech, as well as green and transition finance,” Jaiswal added.
The trio of local banks posted gains on Monday. UOB climbed 0.8 per cent or S$0.23 to S$29.42, DBS rose 0.8 per cent or S$0.26 to S$34.13, while OCBC advanced 0.5 per cent or S$0.07 to S$13.33.
Another potential winner that Jaiswal identified is ST Engineering, which has exposure to the defence sector. He noted that the Ministry of Defence remains the top ministry by expenditure in the 2024 Budget, which he views to be positive for the company. ST Engineering shed 0.3 per cent or S$0.01 to S$3.90 on Monday.
On the STI, Thai Beverage was the top gainer, rising 2 per cent or S$0.01 to S$0.51. Meanwhile, Seatrium was at the bottom of the table, falling 3.2 per cent or S$0.003 to S$0.09.
Major regional indices ended mixed on Monday. Japan’s Nikkei 225 edged down 0.04 per cent, Hong Kong’s Hang Seng Index fell 1.1 per cent while South Korea’s Kospi rose 1.2 per cent.
