US-Iran Talks Progress Boosts Asian Stocks; STI Up 0.22%
Progress in US-Iran peace talks eased concerns over a breakdown, lifting most Asian stock markets. The Singapore Straits Times Index (STI) rose 0.22% or 11.31 points on Monday (June 22) to close at 5,204.01 points.
The STI opened lower and remained volatile but rebounded sharply in the final minutes, returning above the 5,200 level.
OANDA senior market analyst Wang Suqin told Lianhe Zaobao that the STI's late recovery was mainly driven by positive news on US-Iran talks. Both sides will continue technical-level consultations and agreed on a roadmap for reaching a final agreement within 60 days.
Asian Markets Broadly Higher; Japan Stocks Hit New High
Regionally, Japan's Nikkei 225 index closed at a new record high, up 1.55% to 72,353.96 points, led by AI and semiconductor-related stocks.
Nikkei earlier reported that the Japanese government plans to spur public and private investment of 370 trillion yen (about US$2.29 trillion) in 17 areas including AI, semiconductors, and aerospace by 2040. The news boosted expectations for increased investment in growth sectors, lifting semiconductor, robotics and AI-related tech stocks.
Seoul, Shanghai, Shenzhen and Taiwan stocks also rose, with gains between 0.69% and 2.75%. Hong Kong and Sydney fell 0.65% and 0.18% respectively.
ACCM research director Glenn Yin said Monday's trading shows that AI remains the most powerful factor against geopolitical risks and high interest rates.
Nomura equity strategist Wataru Akiyama said AI-related companies again led the market rally. However, the market remains highly vigilant on developments in Iran and the Middle East.
PCE Data Approaching; STI Near-Term Still Bullish
Apart from geopolitics, Wang Suqin noted that the market is also watching the US personal consumption expenditures (PCE) data due Thursday (June 25). If core inflation reaches 3.3% or above, the Fed's monetary policy direction could turn more hawkish, strengthening the US dollar and potentially triggering profit-taking in Singapore stocks.
However, with the STI holding above its 20-day moving average, Wang remains bullish on the near-term outlook, with resistance at 5,350 points.
Local Market More Losers Than Gainers; Mixed Individual Stocks
Total trading volume on the Singapore market on Monday was 1.26 billion shares, with total turnover of S$2.01 billion. There were 270 gainers and 306 losers.
Among STI components, 12 stocks rose, three were flat, and 15 fell.
The top gainer was DFI Retail Group (DFIRG), up 3.8% to close at US$3.82. The biggest loser was Jardine Matheson Holdings (JMH), down 3.95% to close at US$62.2.
On corporate news, GuocoLand Limited's subsidiary GLL IHT Pte. Ltd. has priced S$110 million in notes at a 2.5% coupon, expected to be issued on June 30.
The notes are part of the company's S$3 billion multicurrency medium-term note program. Proceeds will be used to meet working capital needs of GuocoLand and its subsidiaries. The notes mature on September 30, 2030, paying semi-annual interest on March 30 and September 30 each year, with the first payment on March 30, 2027.
GuocoLand's share price fell 0.46% on Monday to close at S$2.18.
Apparel retailer FJ Benjamin placed 42 million new shares at S$0.0072 per share to two investors, including Eu Yee Ming, fourth-generation descendant of local traditional medicine chain Eu Yan Sang.
The company said in a statement that Eu Yee Ming subscribed 14 million shares for a total of S$100,800. The other investor, Rosslyn Leong Sou Fong, subscribed the remaining 28 million shares for S$201,600. After the placement, Eu and Leong hold 1.14% and 2.28% of the company respectively.
FJ Benjamin shares closed at S$0.008, unchanged.
