US-Iran Talks Progress Boost Asian Markets STI Up 0.22%
Progress in peaceful talks between the US and Iran eased market fears of a breakdown in negotiations, lifting most Asian stock markets. The Straits Times Index rose 0.22% or 11.31 points on Monday (June 22) to close at 5204.01 points.
The STI opened lower and traded in a volatile range, but rebounded sharply in late trade, returning above the 5200 level.
OANDA senior market analyst Wang Suiqin told Lianhe Zaobao that the STI's late recovery was mainly driven by positive news on US-Iran talks. The two sides will continue technical-level consultations and have agreed on a roadmap to reach a final agreement within 60 days.
Regional Markets Mostly Higher Japan Hits New High
In regional markets, Japan's Nikkei 225 index set a new closing high, rising 1.55% to 72,353.96. Leading the gains were AI and semiconductor-related stocks.
The Nikkei reported earlier that the Japanese government plans to drive public and private investment totaling 370 trillion yen (about US$2.29 trillion) by 2040 in 17 areas including AI, semiconductors, aerospace, and aviation. The news boosted expectations of increased investment in growth sectors, lifting semiconductor, robotics, and AI-related technology stocks.
Stock markets in Seoul, Shanghai, Shenzhen, and Taiwan also rose, with gains ranging from 0.69% to 2.75%. Hong Kong and Sydney fell 0.65% and 0.18% respectively.
ACCM research director Glenn Yin said Monday's trading showed that AI remains the strongest factor against geopolitical risks and high interest rates.
Nomura equity strategist Wataru Akiyama said AI-related companies once again led the market rally. However, markets remain highly vigilant about developments in Iran and the Middle East.
Markets Eye US PCE STI Short-Term Still Bullish
Besides geopolitics, Wang Suiqin believes the market is also focusing on the US Personal Consumption Expenditures (PCE) data due on Thursday (25th). If core inflation reaches above 3.3%, the Fed's policy direction may turn more hawkish, strengthening the US dollar and possibly triggering profit-taking in Singapore stocks.
However, given that the STI remains above the 20-day moving average, Wang Suiqin remains bullish on the short-term outlook, with resistance at 5350 points.
Local Market: More Losers Than Gainers Stock Divergence
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 constituent stocks, 12 advanced, 3 were flat, and 15 declined.
Leading the gains was DFI Retail Group (DFIRG), up 3.8% to close at US$3.82. The biggest decliner was Jardine Matheson Holdings (JMH), down 3.95% to close at US$62.2.
In corporate news, GuocoLand Limited's subsidiary GLL IHT Pte. Ltd has completed pricing for S$110 million notes with a 2.5% coupon, expected to be issued on June 30.
The notes are part of the company's S$3 billion multi-currency medium-term note program. Proceeds will be used for working capital needs of GuocoLand and its subsidiaries. The notes mature on September 30, 2030, with semi-annual interest payments on March 30 and September 30 each year, starting March 30, 2027. GuocoLand shares fell 0.46% to close at S$2.18.
Fashion retailer FJ Benjamin placed 42 million new shares at S$0.0072 per share to two investors, including Eu Yi Ming, fourth-generation descendant of local Chinese medicine chain Eu Yan Sang.
The company said in a filing that Eu Yi Ming subscribed for 14 million shares, totaling S$100,800. The other investor, Rosslyn Leong Sou Fong, subscribed for the remaining 28 million shares, totaling S$201,600. After the placement, Eu Yi Ming and Rosslyn Leong hold 1.14% and 2.28% of the company's shares respectively. FJ Benjamin shares closed at S$0.008, unchanged.
