SINGAPORE: Singapore stocks opened higher on Monday, Aug 26, after comments from US Federal Reserve chair Jerome Powell reinforced investors’ expectations that the central bank is likely to lower its key policy rate next month.
The Straits Times Index (STI) gained 13.34 points, or 0.4%, reaching 3,401.33, as trading began at 9:03 am, The Business Times reports. In the broader market, there were 127 gainers and 28 losers, with 72.9 million securities traded, amounting to a value of S$78.3 million.
Genting Singapore was among the most actively traded stocks by volume, rising 0.6% to S$0.82 with 4.6 million shares exchanged.
Singtel’s shares opened flat at S$2.94. Sats, an in-flight catering and ground handling service, experienced a modest increase of 0.3%, with its shares rising by S$0.01 to S$3.58.
The banking sector also opened higher on Monday. DBS experienced a modest gain of 0.1%, with its shares increasing by S$0.04 to S$35.93.
UOB followed closely, with a 0.2% rise, adding S$0.06 to bring its shares to S$30.84. OCBC also saw a slight increase, up by 0.1% or S$0.02, with its shares trading at S$14.40.
On Friday, Wall Street ended the week with solid gains.
This week, the Fed will review a range of economic indicators, including the Commerce Department’s updated second-quarter GDP and the detailed personal consumption expenditures report, as it prepares for its September rate decision.
The Dow Jones Industrial Average climbed by 462.3 points, or 1.1%, closing at 41,175.08. The S&P 500 increased by 63.97 points, or 1.2%, to 5,634.61. The tech-heavy Nasdaq Composite also posted significant gains, adding 258.44 points, or 1.5%, ending the day at 17,877.79.
European markets also mirrored this optimism. The pan-European Stoxx 600 index rose by 0.5% to 518.13, reaching its highest level over three weeks. /TISG
Read also: Singapore stocks open flat on Friday as US stocks fall and Europe stocks gain
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