SGX Recap: STI Gains 1.7% Amid Policy Boost, Global Tailwinds
The weekly advance marked a strong rebound from April lows, although a mild pullback on Aug 1 capped gains after a 14-day winning streak.
Investor confidence was buoyed early in the week by the Monetary Authority of Singapore's (MAS) announcement of a S$1.1 billion allocation to the Equity Market Development Programme, aimed at supporting small-cap investments. The move helped lift sentiment across mid- and small-cap stocks and signalled deeper structural support for the local equity market.
The rally, which had pushed the STI more than 250 points or 6.2% higher over the past two weeks, paused slightly toward the end of the week as traders took profits ahead of month-end. The STI slipped about 0.5% on Aug 1 but remained firmly in positive territory for the week.
Global tailwinds also helped drive gains, with encouraging US economic data and easing trade tensions attracting capital inflows into defensive markets like Singapore. Analysts noted that the city-state's high dividend-yielding blue chips continue to appeal to investors seeking stability amid global uncertainties.
Among the week's top performers, DFI Retail Group surged 13% on upbeat earnings and dividend expectations. Property developer City Developments Ltd rose around 8%, while ST Engineering gained 7% on improving order book prospects. Meanwhile, real estate investment trusts (REITs) lagged, with Keppel DC REIT and Mapletree Logistics Trust posting declines as rental pressures and occupancy challenges weighed on distribution payouts.
Despite the slight pullback on Aug 1, analysts remain optimistic about the STI's near-term outlook, projecting a consolidation phase in the 4,200-4,260 range. Focus is expected to shift to upcoming US inflation data and earnings releases from local blue-chip firms.
With MAS-led reforms underway and investor appetite for defensive plays intact, the Singapore market continues to be viewed as a relative safe haven in the region.
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