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The Star
21-07-2025
- Business
- The Star
Singapore hits record high for 14th session, sets the pace for Asian equities
A file photo of the SGX Centre in Singapore. — Bloomberg Singapore's equity benchmark scaled an all-time high for the 14th consecutive session on Monday, buoyed by strong inflows to high-yield stocks, while bourses elsewhere in emerging Asia also began the week on a largely positive note. Most regional currencies slid against the U.S. dollar: the Indonesian rupiah and the Philippine peso weakened about 0.4% each, while South Korea's won, Taiwan's dollar, and Thai baht slipped marginally. An MSCI gauge of global emerging market currencies also declined, now down more than 1% since hitting an all-time high on July 3. Singapore's FTSE Straits Times Index climbed for an 11th consecutive session, its longest winning streak on record, and rose as much as 0.9% to 4,225.790 points. The benchmark index was driven by a rally in banks, telecoms, and industrial firms. Analysts say the city-state's equity market has emerged as a relative safe-haven asset amid rising global risks, with ample liquidity, a strong local currency, and low interest rates boosting appetite for attractive dividend yield. "Low interest rates and a lack of alternative yield instruments are likely to continue supporting market activity (in Singapore)," DBS analysts said, adding that a recovery in wealth management will offer medium-term tailwind for Singapore banks. Defensive stocks are gaining appeal among global investors who seek stability amid ongoing uncertainty over U.S. trade policy and macroeconomic challenges. Singapore's economy also surprised to the upside last week, reporting faster-than-expected second-quarter growth and a 13% jump in exports for June, further reinforcing bullish sentiment. Across the rest of Southeast Asia, equities held largely firm: Indonesia's benchmark index jumped as much as 1% and continued to hover around its mid-December 2024 highs, while stocks in Manila and Seoul climbed 0.7% and 0.4%, respectively. The MSCI index of equities in emerging Asia slipped 0.2%, but has gained more than 2% this month, outperforming the broader Asia-Pacific equities index, which includes Japan, which is up only 0.3%. After last week's rate cut in Indonesia, markets are now waiting for the next catalyst, most likely growth data due early next month, said Fakhrul Fulvian, chief economist at Trimegah Securities. He warned that the absence of near-term triggers could cap further upside. Thailand's SET Index climbed nearly 1% but turned negative within an hour of opening. The gauge has risen more than 10% so far this month, outperforming its regional peers after clocking deep losses in the first half. Investors in Asia continue to keenly scrutinise tariff headlines ahead of an August 1 deadline to strike a deal with Washington. Local sentiment has improved after Vietnam and Indonesia reached an agreement on export levies, although final details are yet to be confirmed. In the Philippines, President Ferdinand Marcos Jr is set to visit the United States this week to secure a trade agreement with Washington. The U.S. earlier this month raised tariffs on exports to 20%, up from 17% threatened in April. HIGHLIGHTS: ** Indonesian 10-year benchmark yield falls 2.9 bps to 6.522% ** ST Engineering and DBS at record high, Singtel at mid-August 2016 high ** South Korea reviews various options to improve North Korea ties ** Japan's shaky government loses upper house control - Reuters
Arabian Post
21-07-2025
- Business
- Arabian Post
Singapore Channels S$1.1 bn into Stock‑Market Boost
Singapore's Monetary Authority has designated S$1.1 billion to three fund managers as the inaugural allocation of its S$5 billion Equity Market Development Programme. The scheme aims to invigorate the bourse and broaden market participation, focusing on smaller- and mid-cap equities. MAS selected Avanda Investment Management, JP Morgan Asset Management and Fullerton Fund Management for the initial round. Fullerton is part of state-owned Temasek. MAS indicated that the providers were chosen based on alignment with EQDP's goals and their capacity to enhance local asset‑management expertise. Over 100 applications were received, with MAS rolling out five‑year funding commitments in phases. The EQDP was unveiled in February in coordination with the Financial Sector Development Fund. Its mandate is to deploy capital through Singapore‑based managers investing primarily in domestic listed equities, with an emphasis on diversifying participation outside large‑cap stocks. ADVERTISEMENT Following the EQDP announcement in August last year, the Straits Times Index has surged 23.9% to July 18, 2025, according to MAS. Authorities believe that targeted investment injection could foster deeper liquidity, narrower bid‑ask spreads and more vigorous price discovery across the exchange. Analysts welcomed the move. One equity strategist said the programme signals a critical shift: 'MAS is using its balance sheet to catalyse private capital into under‑represented segments.' Market observers noted that while headline liquidity in the FTSE Straits Times Index is healthy, mid‑ and small‑cap names typically suffer from thin volume and wide spreads, deterring institutional and retail interest. JP Morgan's involvement is expected to bring global asset‑management experience to bear on local strategies. Avanda, a Singapore‑grown emerging‑markets specialist, and Fullerton, with sovereign backing, strengthen confidence that domestic competence will benefit from the infusion of global best practice. Details of each manager's mandate have not been disclosed, but MAS emphasised that performance will be measured not only by capital deployment but also progress in building domestic expertise in portfolio construction, trading infrastructure and market‑making behaviours. These elements are crucial to achieving sustainable liquidity gains. Experts point out that Singapore's programme mirrors efforts overseas, such as Japan's ETF purchases by its pension fund, but with a distinctive twist: the EQDP partners with private asset managers rather than buying equities directly. That design aims to stimulate skill transfer and innovation in execution capabilities. Further co‑investment rounds are expected later this year, with MAS reviewing submissions in stages to expedite capital deployment. The S$5 billion envelope is expected to span several tranches, signalling long‑term commitment to market enhancement. Since introducing a broad stock‑market review in August last year, MAS and its review group have identified several friction points, including limited participation by retail investors, dominance by large‑cap counters and constrained institutional activity in smaller names. EQDP is one among several initiatives aimed at remedying structural imbalances. Regulatory adjustments are also on the cards, with potential reforms covering short‑selling rules, stock‑lending frameworks and promoting algorithmic market‑making. MAS has indicated a willingness to consult key stakeholders, including retail brokerages and the Singapore Exchange, to create complementary regulatory enablers. Market participants have pointed out that EQDP funding alone may not be sufficient. A private fund‑operations specialist commented: 'Capital without market infrastructure enhancements risks being parked rather than deployed actively.' MAS' selection criteria emphasise capacity building—suggesting this concern has been taken into account. Beyond boosting trading volumes, the manoeuvre may help Singapore position itself as a regional equity hub. By fostering advanced trading strategies, tighter spreads and higher turnover, the city‑state stands to attract more international fund flows. Simultaneously, support for domestic managers reinforces Singapore's ambition to strengthen its plug‑and‑play asset‑management ecosystem. MAS confirmed that progress and outcomes will be tracked and disclosed periodically. Selected managers will have to report on liquidity metrics, investment activity and capability transfer milestones. This level of oversight reflects a strategic approach to ensure that public‑private collaboration delivers measurable structural improvements.
New Straits Times
21-07-2025
- Business
- New Straits Times
Singapore hits record high for 14th session, sets the pace for Asian equities
SINGAPORE: Singapore's equity benchmark scaled an all-time high for the 14th consecutive session on Monday, buoyed by strong inflows to high-yield stocks, while bourses elsewhere in emerging Asia also began the week on a largely positive note. Most regional currencies slid against the US dollar: the Indonesian rupiah and the Philippine peso weakened about 0.4 per cent each, while South Korea's won, Taiwan's dollar, and Thai baht slipped marginally. An MSCI gauge of global emerging market currencies also declined, now down more than 1 per cent since hitting an all-time high on July 3. Singapore's FTSE Straits Times Index climbed for an 11th consecutive session, its longest winning streak on record, and rose as much as 0.9 per cent to 4,225.790 points. The benchmark index was driven by a rally in banks, telecoms, and industrial firms. Analysts say the city-state's equity market has emerged as a relative safe-haven asset amid rising global risks, with ample liquidity, a strong local currency, and low interest rates boosting appetite for attractive dividend yield. "Low interest rates and a lack of alternative yield instruments are likely to continue supporting market activity (in Singapore)," DBS analysts said, adding that a recovery in wealth management will offer medium-term tailwind for Singapore banks. Defensive stocks are gaining appeal among global investors who seek stability amid ongoing uncertainty over US trade policy and macroeconomic challenges. Singapore's economy also surprised to the upside last week, reporting faster-than-expected second-quarter growth and a 13 per cent jump in exports for June, further reinforcing bullish sentiment. Across the rest of Southeast Asia, equities held largely firm: Indonesia's benchmark index jumped as much as 1 per cent and continued to hover around its mid-December 2024 highs, while stocks in Manila and Seoul climbed 0.7 per cent and 0.4 per cent, respectively. The MSCI index of equities in emerging Asia slipped 0.2 per cent, but has gained more than 2 per cent this month, outperforming the broader Asia-Pacific equities index, which includes Japan, which is up only 0.3 per cent. After last week's rate cut in Indonesia, markets are now waiting for the next catalyst, most likely growth data due early next month, said Fakhrul Fulvian, chief economist at Trimegah Securities. He warned that the absence of near-term triggers could cap further upside. Thailand's SET Index climbed nearly 1 per cent but turned negative within an hour of opening. The gauge has risen more than 10 per cent so far this month, outperforming its regional peers after clocking deep losses in the first half. Investors in Asia continue to keenly scrutinise tariff headlines ahead of an August 1 deadline to strike a deal with Washington. Local sentiment has improved after Vietnam and Indonesia reached an agreement on export levies, although final details are yet to be confirmed. In the Philippines, President Ferdinand Marcos Jr is set to visit the United States this week to secure a trade agreement with Washington. The US earlier this month raised tariffs on exports to 20 per cent, up from 17 per cent threatened in April.
Business Recorder
18-07-2025
- Business
- Business Recorder
Asian currencies downbeat against dollar
BENGALURU: Equities in emerging Asia advanced on Thursday, lifted by recent US trade deals with Vietnam and Indonesia and rising expectations that central banks across the region will adopt a more dovish monetary policy stance. Singapore's FTSE Straits Times Index notched a record high for the ninth straight session, marking its longest winning streak since early 2014, underscoring investor confidence in the city-state's resilience amid global trade headwinds and its favourable tariff positioning relative to peers. 'Singapore's reciprocal tariffs are not just lower than Malaysia (25%) and Vietnam (20%), but also comparable developed economies which produce high-end exports, including the EU (30%) and Japan (25%),' said Maybank analysts. Singapore ran a trade deficit with the US last year. Following stronger-than-expected growth data, Maybank analysts expect the Monetary Authority of Singapore to maintain its appreciation bias at both the July and October meetings. Both Vietnam and Indonesia have clinched trade deals with the United States before the August 1 deadline. This has raised hopes that there could be more deals coming through amid ongoing negotiations, said Christopher Wong, a currency strategist at OCBC. 'Also there remain expectations that Fed will return to easing cycle at some point later this year to next year,' Wong said. Meanwhile, recent news from both Thailand and Indonesia has helped markets lift bets on further monetary policy easing. Thailand is reportedly set to nominate Vitai Ratanakorn as its new central bank chief, a veteran banker popular for his dovish tilt. The equity benchmark in Bangkok was the top gainer among its regional peers on Thursday, rising 3.6% to its highest since late May. 'Earlier signs this week pointed to the appointment of Vitai Ratanakorn, who would have been seen as a dovish appointment and an advocate of lower rates as well as coordinated fiscal and monetary policy to revive the economy,' said analysts at Citi. Indonesia lowered interest rates on Wednesday and signalled further room for easing, pushing the equity index in Jakarta 2.2% higher over the last couple of days. Meanwhile, currency markets in Asia were on edge amid speculation over Federal Reserve Chair Jerome Powell's future. While US President Donald Trump sought to calm nerves by stating he was 'highly unlikely' to remove Powell, the uncertainty has added a layer of volatility across global markets. Indonesia's rupiah fell to its weakest in more than three weeks, while the South Korean won hovered around its late-June lows. The Thai baht, Singapore's dollar, the Philippine peso, and the Malaysian ringgit all traded lower.
The Star
17-07-2025
- Business
- The Star
Asia shares rally on easing tariff jitters, dovish cenbank bets
Equities in emerging Asia advanced on Thursday, lifted by recent U.S. trade deals with Vietnam and Indonesia and rising expectations that central banks across the region will adopt a more dovish monetary policy stance. Singapore's FTSE Straits Times Index notched a record high for the ninth straight session, marking its longest winning streak since early 2014, underscoring investor confidence in the city-state's resilience amid global trade headwinds and its favourable tariff positioning relative to peers. "Singapore's reciprocal tariffs are not just lower than Malaysia (25%) and Vietnam (20%), but also comparable developed economies which produce high-end exports, including the EU (30%) and Japan (25%)," said Maybank analysts. Singapore ran a trade deficit with the U.S. last year. Following stronger-than-expected growth data, Maybank analysts expect the Monetary Authority of Singapore to maintain its appreciation bias at both the July and October meetings. Both Vietnam and Indonesia have clinched trade deals with the United States before the August 1 deadline. This has raised hopes that there could be more deals coming through amid ongoing negotiations, said Christopher Wong, a currency strategist at OCBC. "Also there remain expectations that Fed will return to easing cycle at some point later this year to next year," Wong said. Meanwhile, recent news from both Thailand and Indonesia has helped markets lift bets on further monetary policy easing. Thailand is reportedly set to nominate Vitai Ratanakorn as its new central bank chief, a veteran banker popular for his dovish tilt. The equity benchmark in Bangkok was the top gainer among its regional peers on Thursday, rising 3.6% to its highest since late May. "Earlier signs this week pointed to the appointment of Vitai Ratanakorn, who would have been seen as a dovish appointment and an advocate of lower rates as well as coordinated fiscal and monetary policy to revive the economy," said analysts at Citi. Indonesia lowered interest rates on Wednesday and signalled further room for easing, pushing the equity index in Jakarta 2.2% higher over the last couple of days. Meanwhile, currency markets in Asia were on edge amid speculation over Federal Reserve Chair Jerome Powell's future. While U.S. President Donald Trump sought to calm nerves by stating he was "highly unlikely" to remove Powell, the uncertainty has added a layer of volatility across global markets. Indonesia's rupiah fell to its weakest in more than three weeks, while the South Korean won hovered around its late-June lows. The Thai baht, Singapore's dollar, the Philippine peso, and the Malaysian ringgit all traded lower. HIGHLIGHTS: ** Indonesian 10-year benchmark yield edges higher to 6.583% ** Thailand central bank says worried about flood of cheap imports into country - Reuters
