SINGAPORE – Record-breaking surges in local bank shares on the back of another interest rate cut in the US drove the local market to a 17-year high on Nov 8.
The buying spree in financial stocks propelled the Straits Times Index (STI) up 1.4 per cent or 50.88 points to 3,724.37 with gainers outpacing losers 297 to 283 on buoyant trade of two billion securities worth $2.3 billion.
The three local lenders hit new highs, with UOB the STI’s top gainer, closing up a striking 7.2 per cent to $35.69. OCBC Bank added 1.1 per cent to $16.06 while DBS Bank rose 1.7 per cent to $42.40.
The STI’s top loser was Genting Singapore, down 6 per cent to 79 cents.
The giddy mood among traders here was set by Wall Street overnight, where investors, still jubilant over the crushing Trump election victory, had a quarter-percentage point rate cut to juice up the euphoria.
The S&P 500 advanced 0.7 per cent and the Nasdaq jumped 1.5 per cent, while the Dow industrials were little changed.
Major indexes across the region were largely unmoved by Wall Street’s elation, however. The Kospi in Seoul dipped 0.1 per cent, Hong Kong’s Hang Seng fell 1.1 per cent and Malaysian shares slipped 0.1 per cent but the Nikkei 225 was up 0.3 per cent and Australian stocks rose 0.8 per cent to a three-week high.
Investors are keeping their eyes peeled for stimulus measures from China, which will kick-start growth there, said SPI Asset Management managing partner Stephen Innes.
Amid speculations of a fiscal package worth trillions of yuan to boost local government spending and prop up consumer demand, there is debate on whether the stimulus will be robust enough to counter potential tariff shocks from a second Trump presidency.
