Singapore’s benchmark Straits Times Index (SGX: ^STI) closed the week on yet another 17-year high at 3,724.37, marking a solid 4.76% gain from the previous week. This surge followed the announcement that the US Federal Reserve had cut interest rates by a quarter percentage point on Thursday, bringing the benchmark overnight rate to the 4.5% to 4.75% range. We covered the impact of the interest rate cut on the stock market here.
News of Republican candidate Donald Trump’s victory in the 2024 US presidential election led to a global rally in stock markets. On Thursday, after the election results were announced, the STI rose by more than 2%.
Banks Reach New Heights
All three of Singapore’s major banks hit all-time highs following strong third-quarter earnings reports.
UOB (SGX: U11) gained 7.2% or S$2.39 at S$35.69. UOB posted a net profit of S$1.61 billion for the third quarter ended September 2024, beating Bloomberg consensus estimates.
OCBC (SGX: O39) closed at a high of $16.06 with its quarterly net profit of S$1.97 billion also beat earning estimates.
DBS (SGX: D05) hit S$42.40 as the company saw its net profit cross the S$3 billion mark for the first time and announced a share buyback programme.
Yangzijiang Shipbuilding Hits 52-Week High
In another standout performance, Maritime vessel maker Yangzijiang Shipbuilding (SGX: BS6) saw its shares hit a 52-week high. The company announced it had secured US$11.6 billion in new orders so far this year, contributing to a 74% year-to-date gain in its share price.
Genting Singapore Declines
Genting Singapore (SGX: G13) bucked the trend, hitting a 2-year low to close at S$0.79 after following disappointing third-quarter results.
US Markets Soar on Election News
Over on Wall Street, US stocks surged to record highs on November 6, driven by the outcome of the US Presidential Elections. The Dow Industrials, S&P 500, and Nasdaq Composite all hit new highs, while bank stocks, in particular, performed exceptionally well. The S&P 500 bank index rose to its highest point in two years. Tesla (NASDAQ: TSLA) also saw its stock jump 8.2%, reflecting investor optimism, partly driven by CEO Elon Musk’s vocal support for Donald Trump during the electoral campaign.
After the Fed announced the interest rates cut, U.S. stocks cruised to more records as they closed their best week in a year on Friday.
Hong Kong and Shanghai Markets Fall Amid Anticipation of Economic Stimulus
Markets in Hong Kong and Shanghai dropped as investors waited for Beijing to announce measures to boost the slowing Chinese economy after a meeting of the legislature’s Standing Committee. This was despite the Hong Kong Monetary Authority cutting its base rate to 5% from 5.25%.
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Joanna Sng owns shares of UOB, OCBC, and DBS.
