Singapore stocks opened on a firmer footing on Wednesday, tracking overnight gains on Wall Street after cooler than expected US inflation data and stronger than anticipated bank earnings boosted investor sentiment.
As at 9.04am, the benchmark Straits Times Index (STI) rose 16.28 points, or 0.3%, to 5,511.89.
Market breadth was positive, with 107 gainers outpacing 52 losers, while 60.94 million securities worth S$165.07 million changed hands in early trade.
Among the index heavyweights, DBS climbed 0.625% to S$72.48, while OCBC Bank traded at S$28.10 and United Overseas Bank (UOB) stood at S$44.49. Singapore Airlines was unchanged at S$7.60, while Yangzijiang Shipbuilding gained to S$3.55 and AEM traded at S$9.63.
The stronger opening came after Wall Street ended mostly higher overnight, with the Nasdaq Composite jumping 0.9%, the S&P 500 gaining 0.38% and the Dow Jones Industrial Average edging up 0.02%.
Investor confidence was lifted after June’s US Consumer Price Index came in below expectations, easing concerns over inflation and reinforcing expectations that the US Federal Reserve will leave interest rates unchanged at its July policy meeting.
The positive sentiment was further supported by a solid start to the US second quarter earnings season, with Goldman Sachs, JPMorgan Chase and Bank of America reporting better than expected results, offsetting lingering concerns over heightened geopolitical tensions in the Middle East.
In the derivatives market, SGX recorded an early trading volume of 17,040 contracts. FTSE China A50 Index Futures for July stood at 15,072.00, while Nikkei 225 Index Futures for September traded at 68,320.00.
