On Monday, Singapore's stock market reached a 17-year high, becoming one of the rising markets in emerging Asia, with the largest banks in Southeast Asia hitting all-time highs.

Driven by significant interest rate cuts from the U.S. Federal Reserve and expectations of economic stimulus measures in China, Asia-Pacific stocks generally rose on September 23. The three major local banks performed strongly, helping the Straits Times Index continue its upward trend from last week, closing at 3,638.54 points, up 0.38%.

DBS Bank led the gains, rising 1.18% to S$39.46, approaching the psychological barrier of S$40. UOB rose 0.94% to S$33.25, while OCBC gained 1.1% to S$15.64. The Straits Times Index climbed 0.7%, reaching its highest level since early November 2007, with top banks DBS, OCBC, and UOB all hitting historical highs.

IG market strategist Ye Junrong noted in an interview with Lianhe Zaobao, “The rise in the Singapore stock market today was mainly driven by bank stocks, attracting significant capital inflows. Investors are currently more inclined to view the Singapore stock market as a safe haven amid global economic uncertainty, especially following the start of the Fed's rate cut cycle. Additionally, the high dividend yields in the Singapore market make it more attractive to investors.”

On Monday, the total trading volume in the Singapore stock market reached 1.08 billion shares, with total turnover of S$1.22 billion. There were 286 stocks that rose and 289 that fell.

Among the major constituents of the Straits Times Index, 12 stocks rose, four remained unchanged, and 14 fell. The biggest gainer was Mapletree Industrial Trust, which rose 1.63% to S$2.49. The largest decline was seen in DFI Retail Group, which fell 3.13% to US$1.86.

Singapore's main consumer price index rose 2.7% year-on-year on Monday, exceeding economists' expectations. This data was released ahead of the Monetary Authority of Singapore's next monetary policy review in October.

Gold Prices Rise Amid Safe-Haven Sentiment

Gold prices surged to an all-time high on Monday, surpassing US$2,600 per ounce. Chen Dade, Chief Strategist for Wealth Management at Eastspring Investments, stated that this reflects an increased appeal of gold as a safe-haven asset, amid ongoing market concerns.

The Singapore dollar reached a nearly 10-year high against the U.S. dollar last week, though it dipped 0.2% to 1.292. In the Philippines, the stock market rose about 2% driven by gains across sectors, surpassing levels seen in March 2022. The peso fell 0.2%, retreating from a nearly six-month high set in the previous trading session.

On Friday, the Bangko Sentral ng Pilipinas announced it would reduce the reserve requirement for commercial banks by 250 basis points starting October 25, mentioning the potential for further cuts based on inflation outlook.

Thailand's stock market and baht rose slightly, bolstered by government-supported mutual funds paving the way for more foreign capital inflows.

The Malaysian ringgit fell on Monday, but analysts expect a significant rise this quarter, appreciating about 12% since the September quarter began. If this trend continues, it would mark the best three-month performance for the currency since January 1973.

Follow us

Find us on Twitter, Instagram, YouTube, and TikTok for frequent updates on all things investing.

Have a financial topic you would like to discuss? Head over to the uSMART Community to share your thoughts and insights about the market! Click the picture below to download and explore uSMART app！

Important Notice and Disclaimer:

We have based this article on our internal research and information available to the public from sources we believe to be reliable. While we have taken all reasonable care in preparing this article, we do not represent the information contained in this article is accurate or complete and we accept no responsibility for errors of fact or for any opinion expressed in this article. Opinions, projections and estimates reflect our assessments as of the article date and are subject to change. We have no obligation to notify you or anyone of any such change. You must make your own independent judgment with respect to any matter contained in this article. Neither we or our respective directors, officers or employees will be responsible for any losses or damages which any person may suffer or incur as a result of relying upon anything stated or omitted from this article.

This document should not be construed in any jurisdiction as constituting an offer, solicitation, recommendation, inducement, endorsement, opinion, or guarantee to purchase, sell, or trade any securities, financial products, or instruments or to engage in any investment or any transaction of any kind, nor is there any intention to solicit or invite the purchase or sale of any securities.

The value of these securities and the income from them may fall or rise. Your investment is subject to investment risk, including loss of income and capital invested. Past performance figures as well as any projection or forecast used in this article is not indicative of its future performance.

This advertisement has not been reviewed by the Monetary Authority of Singapore