Singapore shares open lower on Thursday—STI dropped 0.4%

SINGAPORE: Singapore shares opened lower on Thursday, Aug 1, even as US and European markets rallied overnight. The Straits Times Index (STI) dropped 0.4 per cent, falling 12.45 points to 3,443.49 as of 9:01 am, according to The Business Times.

In the broader market, 74 gainers outnumbered 44 losers after 59.4 million securities worth S$94.1 million were exchanged.

Japfa was the most actively traded counter by volume, which rose 9.1 per cent or S$0.03 to S$0.36, with 6.3 million shares transacted.

The agri-food company reported a net profit of US$51.7 million for the first half of FY2024 on Wednesday, bouncing back from a net loss of US$53.6 million in the same period last year.

Other heavily traded securities included Seatrium, which gained 2.4 per cent, or S$0.04, to S$1.72, with 3.3 million shares exchanged. Singtel declined 3.6 per cent, or S$0.11, to S$2.97, with 3.2 million shares traded.

Banking stocks showed mixed results at Thursday’s open. DBS dipped 0.1 per cent, or S$0.02, to S$36.57. In contrast, OCBC gained 0.7 per cent, or S$0.10, to S$14.95; UOB rose 0.6 per cent, or S$0.18, to S$32.53.

The rise in UOB stocks came after the bank announced a 1 per cent increase in Q2 net profit to S$1.43 billion, driven by double-digit fee income growth and lower credit allowances. It also declared a dividend of S$0.88 per share for the half-year ended June 30.

On Wall Street, stocks rallied on Wednesday after the US Federal Reserve hinted at potential interest rate cuts as soon as September.

Technology shares led the charge, with the Nasdaq Composite Index advancing 2.6 per cent to close at 17,599.4. The Dow Jones Industrial Average increased 0.2 per cent to 40,842.79, and the S&P 500 rose 1.6 per cent to 5,522.3.

European shares gained on Wednesday, supported by a significant jump in ASML and a series of positive earnings reports.

The pan-European Stoxx 600 index ended 0.8 per cent higher at 518.18, reaching a two-week high earlier in the session and showing a monthly increase of over 1 per cent. /TISG

Read also: Singapore stocks kick off on Wednesday—STI rose by 0.3%

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