Straits Times Index Rises as US-Iran Talks Progress Lift Singapore Shares
Progress in US-Iran peace talks eased fears of a breakdown and lifted most Asian stock markets. Singapore's Straits Times Index rose 0.22%, or 11.31 points, on Monday (June 22), closing at 5,204.01.
The STI fell at the open and then traded in a choppy pattern, but it rebounded late in the day and returned to around the 5,200 level. Wang Suiqin, senior market analyst at OANDA, said the late rebound was mainly lifted by positive news on US-Iran talks. The two sides will continue technical consultations and have agreed on a roadmap to reach a final deal within 60 days.
In regional markets, Japan's Nikkei 225 closed at another record high, rising 1.55% to 72,353.96 points. AI- and semiconductor-related stocks led the gains. Earlier, Nikkei reported that the Japanese government plans to drive public and private investment of 370 trillion yen (about US$229 billion) by 2040 across 17 fields including AI, semiconductors and aerospace. Markets expect more investment in growth sectors, pushing up semiconductor, robotics and AI-related tech stocks.
Stocks in Taiwan also rose in Seoul, Shanghai and Shenzhen, with gains ranging from 0.69% to 2.75%. Hong Kong and Sydney stocks closed down 0.65% and 0.18%, respectively. Glenn Yin, research director at ACCM, said market trading showed that AI remains the most powerful factor against geopolitics and high interest rates. Nomura Securities strategist Wataru Akiyama said AI-related companies once again became the main force behind market gains, but investors remain highly alert to Iran and Middle East developments.
Beyond geopolitics, Wang Suiqin noted that the market is also watching Thursday's (25th) US Personal Consumption Expenditures (PCE) data. If core inflation reaches 3.3% or above, the Federal Reserve may turn more hawkish, strengthen the US dollar and trigger profit-taking in Singapore stocks. Still, given that the STI remains above its 20-day moving average, Wang remains bullish on the short-term outlook, with resistance at 5,350 points.
STI breadth and turnover
Singapore stocks traded 1.26 billion shares worth S$2.01 billion on Monday; 270 counters rose and 306 fell.
Local blue chips and company updates
Among STI constituents, 12 rose, three were unchanged and 15 fell. The top gainer was DFI Retail Group (DFIRG), which rose 3.8% to close at US$3.82. The biggest loser was Jardine Matheson Holdings (JMH), which fell 3.95% to close at US$62.20.
In company news, GuocoLand Limited subsidiary GLL IHT Pte. Ltd completed pricing for notes with an aggregate principal of S$110 million and a 2.5% coupon, with issuance expected on June 30. The notes are part of the company's S$3 billion multicurrency medium-term note programme, and the funds will be used to meet operating expenses of GuocoLand and its subsidiaries. The notes mature on September 30, 2030, with interest paid semi-annually on March 30 and September 30 each year, starting on March 30, 2027. GuocoLand shares fell 0.46% on Monday to close at S$2.18.
Apparel retailer FJ Benjamin placed 42 million new shares at 0.72 cent each to two investors, one of whom is Yu Yiming, a fourth-generation descendant of local Chinese medicine chain Eu Yan Sang. The company said Yu subscribed for 14 million shares worth S$108,000, while the other investor, Rosslyn Leong Sou Fong, subscribed for the remaining 28 million shares worth S$201,600. After the placement, Yu Yiming and Rosslyn Leong Sou Fong held 1.14% and 2.28% of the company, respectively. FJ Benjamin closed unchanged at 0.8 cent.
