STI tops 5,000 in post-holiday rally, but volatility looms

The Singapore stock market escaped a bout of post-close volatility on Feb 20.

- Kang Wan Chern

DBS Bank and OCBC Bank were among the biggest contributors to last week's rally, with DBS closing just under $58 on Feb 20, from $56.92 before the break. OCBC rose from $21.11 before the holiday to end the week at $21.72. ST FILE PHOTO

(ST FILE PHOTO)

However, it may see renewed turbulence in the week ahead after US President Donald Trump's imposition of a 15 per cent global tariff on imports into the US, announced on Truth Social on Feb 21. Mr Trump had earlier announced a 10 per cent global levy under a separate legal provision after a 6-3 Supreme Court ruling on Feb 20 rejected his authority to impose tariffs under a 1977 economic emergency powers law.The Singapore stock market rallied after a two-day Chinese New Year break on Feb 17 and 18, with the Straits Times Index (STI) opening above 4,986 points when trading resumed on Feb 19. This was up from about 4,938 before the holiday. The index extended gains to close above 5,017 on Feb 20.

DBS Bank and OCBC Bank were among the biggest contributors to the rally. DBS ended the week just shy of $58, up from $56.92 before the break. Singapore's largest bank had touched a record high of $59.79 in January. OCBC rose from $21.11 before the holiday to close the week at $21.72.

Other major movers on the index included Singtel, which climbed from $4.85 at the close of Feb 16 to a record high of $5.09 on Feb 20, before ending the week at $5.04.

Yangzijiang Shipbuilding advanced from $3.47 before the break to $3.73 by Feb 20, while Genting Singapore finished the week at 81 cents, a one-year high.

The rally was not confined to blue-chip counters, with trading momentum spilling over into the broader market.

Australia-based engineering company Civmec closed Feb 20 at a record high of $1.49, up by more than 10 per cent through the week.