Singapore shares closed higher on Monday (Jul 31) tracking gains across the region, following signs of easing inflation in the US.
Saxo market strategist Charu Chanana noted that US personal consumer expenditures (PCE) data on Friday pointed to easing inflation, with core PCE rising 0.2 per cent in June, in line with expectations.
“There is still a lot more data to digest ahead of the next Fed meeting, but so far, the market remains complacent and expects the Fed to have reached an end of its tightening cycle,” The Business Times reported her saying.
On the local bourse, shares of Keppel Corp led the STI gainers, after rising 2.5 per cent to close at S$7.38. Other top gainers for the day include Sats and Yangzijiang Shipbuilding, which rose 2.2 per cent to S$2.80 and 2 per cent to S$1.54, respectively.
The benchmark Straits Times Index (STI) rose 0.1 per cent or 2.81 points to close at 3,373.98.
Elsewhere, stocks in Japan led gainers in the region with the Nikkei 225 rising 1.3 per cent. Other key indices in Australia, South Korea, and Hong Kong also rose between 0.1 and 0.9 per cent, tracking the rally on Wall Street last Friday.
Market cap up 4.6% in July
Meanwhile, the total market capitalisation of Singapore stocks gained 4.6 per cent in July, amid a better-than-expected corporate earnings reporting season.
Data compiled by The Business Times indicated that market cap of the overall Singapore market was S$841.6 billion in July, up from S$804.7 billion at end-June.
Of the 624 companies listed on the Singapore Exchange (SGX), gainers outnumbered losers 250 to 230.
Total market capitalisation of the benchmark Straits Times Index component counters rose 4.1 per cent on month, or S$21.9 billion, to S$560.3 billion in July.
SGX market strategist Geoff Howie noted growing concerns that decelerating growth in July would impact corporate earnings and outlooks.
But the earnings season thus far has seen more upside surprises than downside surprises in the US, across Asean as well as in Singapore, he noted.
