The Straits Times Index climbed to a new high of 4,965.50, marking its third consecutive session at that level. Over the past two trading days, the key gauge has surged more than 70 points, or 1.4 percent, with financial shares playing a major role in pushing the index past the 4,965-point mark. Notable performers included DBS Group, which rose by 0.47 percent, and United Overseas Bank, which added 0.42 percent to its value.
Among property and industrial stocks, the response was uneven. CapitaLand Integrated Commercial Trust saw a modest 0.84 percent increase, while Mapletree Industrial Trust fell sharply by 2.39 percent. The property subindex struggled to gain traction, with City Developments shedding 0.21 percent and Keppel DC REIT declining by 0.87 percent. This mixed performance highlighted the uncertainty affecting the real estate and manufacturing sectors.
Global cues remain uncertain
Across the Atlantic, the U.S. stock market ended with conflicting trends. The Dow Jones Industrial Average climbed 260.31 points, or 0.53 percent, to 49,501, while the NASDAQ slipped 350.61 points, or 1.51 percent, to 22,904.58. Technology shares were a drag, particularly in the semiconductor sector, which saw steep declines. This divergence reflected ongoing investor caution and sector-specific challenges.
Economic indicators from the U.S. added to the uncertainty. ADP reported that private-sector job gains in January were far below expectations, raising concerns about economic momentum. Additionally, the Institute for Supply Management noted that the service sector activity index remained flat compared to the previous month. Meanwhile, energy markets responded positively as U.S. crude oil inventories fell more than anticipated, sending West Texas Intermediate crude up $1.97, or 3.12 percent, to $65.18 per barrel.
Singapore retail data in focus
Investors in Singapore will closely watch the December retail sales data, scheduled for release later in the day. In November, retail sales were unchanged compared to the previous month but still managed to increase by 6.3 percent on an annual basis. While the recent rally in the local market has been fueled by strong financial stocks, traders are bracing for the potential of a pullback on Thursday. The broader economic uncertainty and mixed global market trends may weigh on sentiment, especially if economic data fails to provide clear direction.
As global markets remain in a state of flux, Singapore’s ability to hold onto its gains appears to depend on whether financial stocks can continue to attract investor interest. A shift in momentum could affect not only the Straits Times Index but also the broader regional markets, as traders reassess risk and reward in light of the latest data and trends.