US-Iran Talks Progress Boost SGX Stocks: STI Up 0.22%
Progress in US-Iran peace talks eased market concerns of a breakdown, lifting most Asian stock markets. The Straits Times Index rose 0.22% or 11.31 points on Monday (June 22) to close at 5,204.01 points.
The STI opened lower and traded in a volatile range but rebounded sharply in the final stretch, returning to the 5,200-point level.
OANDA Senior Market Analyst Wang Suiqin told Lianhe Zaobao that the late-session rebound was mainly fueled by positive news from the 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.
In the region, Japan's Nikkei 225 index hit another record closing high, rising 1.55% to 72,353.96 points, led by artificial intelligence (AI) and semiconductor-related stocks.
The Nikkei reported earlier that the Japanese government plans to drive a combined public and private investment of 370 trillion yen (about US$2.29 trillion) in 17 fields including AI, semiconductors, and aerospace by 2040. 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 Securities equity strategist Wataru Akiyama noted that AI-related companies are again driving the market rally. However, the market remains highly alert to developments in Iran and the Middle East.
Besides geopolitics, Wang said the market is also focusing on the US Personal Consumption Expenditure (PCE) data due Thursday (June 25). If core inflation exceeds 3.3%, the Fed's policy direction could turn more hawkish, strengthening the US dollar and possibly triggering profit-taking in the Singapore market.
However, given that the STI remains above its 20-day moving average, Wang is bullish on the near-term outlook, with resistance at 5,350 points.
Singapore Trading and Local Stock Performance
Total trading volume on the Singapore market Monday was 1.26 billion shares, with a total transaction value of S$2.01 billion; 270 stocks rose and 306 fell.
Local Stocks Fell More Than They Rose
Among STI component stocks, 12 rose, 3 flat, and 15 fell.
Top gainer was DFI Retail Group (DFIRG), up 3.8% to US$3.82. The biggest decliner was Jardine Matheson Holdings (JMH), down 3.95% to US$62.2.
SGX Company Updates: Notes Pricing and New Share Placement
In corporate news, GuocoLand Limited's subsidiary GLL IHT Pte. Ltd. has completed pricing of S$110 million in notes with 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 for GuocoLand and its subsidiaries' operating expenses. 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 closed at S$2.18 on Monday, down 0.46%.
FJ Benjamin Holdings placed 42 million new shares at S$0.0072 per share to two investors, including Eu Yee Ming, the fourth-generation descendant of local traditional Chinese medicine chain Eu Yan Sang.
The company said in a statement that Eu Yee Ming subscribed to 14 million shares for S$100,800. Another investor, Rosslyn Leong Sou Fong, subscribed to 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.
