STI ends up 1.5%; banks, Yangzijiang Shipbuilding lead gains

SINGAPORE shares ended higher on Wednesday (Jan 8), led by gains in the local banks and Yangzijiang Shipbuilding.

The Straits Times Index (STI) expanded 1.5 per cent or 58.81 points to 3,886.98.

On the local bourse, decliners outnumbered advancers 283 to 237, as 960 million shares worth S$1.4 billion changed hands.

STI constituent Yangzijiang Shipbuilding, which climbed 4.4 per cent or S$0.13 to S$3.08, was the most actively traded counter by volume, with 47 million shares worth S$141.8 million changing hands.

The maritime player announced on Tuesday that asset manager BlackRock had become its latest substantial shareholder.

The three local banks also closed in positive territory. OCBC gained 4.2 per cent or S$0.70 to S$17.55, and UOB was up 2 per cent or S$0.75 at S$37.80. DBS shares breached S$45 as it increased 2.1 per cent or S$0.94 to S$45.44.

Maybank Securities analysts highlighted OCBC and UOB as key beneficiaries of the landmark Johor-Singapore Special Economic Zone (SEZ) pact, as they have well-entrenched Malaysian and Asean footprints. The SEZ agreement was signed on Tuesday, with plans to expand 100 projects in 10 years.

“A targeted, government-to-government integration of Johor and Singapore to improve ease of doing business, labour and capital flows could provide opportunities for the banks to leverage on their integrated platforms,” said Thilan Wickramasinghe, Maybank Securities Singapore head of research and regional head of financials.

Meanwhile, the biggest loser on the STI was CapitaLand Investment, which fell 2.7 per cent or S$0.07 to S$2.51.

Outside Singapore, regional indices were mixed. Hong Kong’s Hang Seng Index fell 0.9 per cent, while South Korea’s Kospi added 1.2 per cent. Japan’s Nikkei 225 declined 0.3 per cent. The Bursa Malaysia Kuala Lumpur Composite Index lost 0.9 per cent.