STI Hits Record High, Head for 2nd Weekly Gain

Singapore stocks rose 28 points, or 0.5%, to 5,462 in Friday morning trade, advancing for the seventh consecutive session and hitting a fresh peak, tracking a rally on Wall Street overnight driven by renewed strength in chipmaker stocks. Retail, industrial services, utilities, technology, and financial stocks mainly drove the broader index. However, traders awaited Singapore's preliminary Q2 GDP data, due next week, with the market expecting economic growth to ease to 5.3% after expanding 6.0% in the previous quarter, the strongest pace in 1-1/2 years. Investors also awaited the release of a slew of data from China, including Q2 GDP, industrial production, and June trade figures. Among the notable gainers were Yangzijiang Shipbuilding Holdings (5.9%), Keppel (4.4%), City Developments (1.9%), Hongkong Land Holdings (1.8%), and Sembcorp (1.3%). For the week, the index is on track for a 4.2% surge, which would mark its second consecutive weekly advance.

The STI Index fell 20 points, or 0.4%, to 4,939 in morning trade on Thursday, extending losses from the previous session, marking its lowest level since May 9, tracking a decline on Wall Street overnight amid a renewed escalation of tensions in the Middle East, which drove oil prices higher. Concerns over elevated valuations in AI-linked stocks also pressured sentiment. Traders also assessed US inflation, which accelerated to its highest level in three years, reinforcing expectations that the Fed will hold interest rates higher for longer. Retail trade, electronic technology, and energy minerals mainly weighed down the index. However, traders continued to monitor developments in the Middle East conflict after the US military announced it had completed its latest strikes on Iran. Among individual stocks, notable losses included Singapore Technologies Engineering (-1.5%), Venture Corp (-1.5%), Singapore Airlines (-1.3%), City Development (-1.2%), and UOL Group (-1.15%).

The STI Index dropped 70 points, or 1.4%, to 4,980 in Monday morning trading, losing for the third straight session and marking its lowest level since May 12, while tracking a decline on Wall Street on Friday due to a selloff in AI-related stocks. Worries about the possibility of renewed tensions between the US and Iran also pressured sentiment after Iran struck Israel, highlighting the fragility of the ceasefire and raising concerns over the outlook for US-Iran peace talks. Traders also anticipated the release of US inflation data and China's inflation and trade balance figures later this week. Almost all sectors traded in the red, including electronic technology, non-energy minerals, commercial services, and process industries. Among the early decliners were Singapore Technologies (-1.4%), City Developments (-1.3%), Singapore Airlines (-1.1%), and Singapore Telecommunications (-0.7%), while DBS Holdings and Jardine Matheson each shed 0.6%.