ST Engineering, Singtel, and local banks have propelled the Straits Times Index (STI) to a 2.3% increase, closing at 3,926.45 last week. This rise occurred despite uncertain trading conditions on Wall Street. ST Engineering’s shares soared by 6.6% to S$6.62, significantly contributing to the STI’s performance.
The US Federal Reserve’s decision to maintain interest rates, with expectations that tariff-induced inflation will be temporary, provided some stability. Meanwhile, US major indices ended a four-week losing streak with modest gains.
Analysts have responded positively to ST Engineering’s performance, upgrading their target prices to above S$7. This optimism reflects confidence in the company’s future growth prospects.
However, challenges remain on the horizon. ESR-REIT’s sponsor, ESR Group, has warned of a potential $730 million (US$730 million) loss due to asset and project revaluations. Additionally, whilst Singapore’s non-oil domestic exports (NODX) rose by 7.6% in February, the ongoing impact of tariffs imposed by former US President Donald Trump poses potential hurdles.
As the market continues to navigate these dynamics, investors are advised to stay informed through weekly updates and technical analysis provided by the Securities Investors Association (Singapore). These insights aim to equip investors with the knowledge needed to make informed decisions in the evolving market landscape.
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