SGX Review: STI Hits Record High Amid Global Optimism And Property Rally
The STI surged past the 4,100 mark during intraday trading on July 11, peaking at 4,102.97 before paring gains slightly by the close. For the week, the index advanced steadily, supported by optimism over easing trade tensions, favourable interest rate dynamics and encouraging signals from the US labour market.
Property developers and real estate investment trusts (REITs) led gains as falling Singapore government bond yields improved the relative appeal of income-generating assets. City Developments Ltd rallied toward S$5.40, while UOL Group approached its 52-week high of S$6.50, buoyed by strong demand and favourable valuations.
However, the recent implementation of new Seller's Stamp Duty rules effective July 4 added a layer of caution to the property sector. The revised regulations extended holding periods and raised stamp duty rates, prompting selective re-pricing in residential property stocks.
Technology and financial stocks also contributed to the STI's gains. Market participants noted increased institutional interest in tech-enabled growth counters, helped by improving earnings prospects and a softening in global interest rate expectations.
The week's bullish tone was underpinned by robust US economic data, including a stronger-than-expected jobs report and signs of progress in global trade negotiations, particularly with Vietnam and the European Union. These developments reduced fears of escalating protectionism, further supporting investor appetite for risk assets.
With the STI up around 6% year-to-date, analysts remain cautiously optimistic.
Looking ahead, investors will be closely watching upcoming US inflation data, Federal Reserve meeting minutes and corporate results from SGX-listed companies for further direction. Related
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