Straits Times (STI) Index mid-week stock recap: June 10, 2020

Singapore’s blue-chip stock benchmark Straits Times Index (STI Index) has had a relatively quiet week so far, as it remained largely unchanged in the week’s first three sessions, save for a brief spike on Tuesday.

As at the close of Wednesday 10 June 2020, the STI is trading at 2795 points – on par with Monday’s opening price, IG data showed.

Of the 30 companies tracked by the STI Index on Wednesday, 17 posted gains for the day.

Markets taking stock of recent rallies

Although Asia’s stock markets managed to retain much of last week’s gains, as global investor sentiments continued to be buoyed by the reopening of businesses following months of movement restrictions and lockdowns, new headwinds are putting a temporary damper on things.

IG Asia analyst Pan Jingyi noted in a morning note that there had been some apprehension in the US markets on Tuesday regarding the latest equity price rallies.

‘Profit taking following the good run for the US equity market appears to have finally unfolded with some concerns gathering as to whether prices have overrun itself with the rally, though the indications with the moderate declines across US indices have shown this to be mild,’ she wrote.

This had evidently spilled over into Asia-Pacific, with the ASX 200 and the Nikkei 225 seeing a ‘mild’ descent of 0.1% and 0.3% respectively in the earlier session, Pan added.

Singapore’s STI also declined as much as 0.81% on Wednesday morning, before recovering quickly in the afternoon.

For now, all eyes are turned to the US Federal Reserve’s meeting on Wednesday, during which the overwhelming expectation appears to be for the monetary policy to be left unchanged.

Here are the Singapore Exchange's (SGX) best performing equities so far this week:

1. SATS share price (+2.74%)

Aviation ground service provider SATS'' shares are up 10.9% so far this week. The stock closed at S$3.37 a share on Wednesday.

2. CapitaLand Commercial Trust share price (+2.14%)

Commercial real estate investment trust CapitaLand Commercial Trust's shares are up 4.9% so far this week. The stock concluded Wednesday at S$1.91 per share.

3. UOB share price (+1.94%)

Money lender United Overseas Bank's shares are up 6.9% this week. Shares traded at S$23.10 apiece at the close of Wednesday.

4. Thai Beverage share price (+1.39%)

Beverage producer and distributor Thai Beverage's shares are up 2.1% this week. The stock concluded Wednesday’s session at S$0.73 a share.

5. Wilmar International share price (+1.3%)

Share price of agriculture product manufacturer Wilmar International is up 1% this week, ending Wednesday at S$4.04 per share.

How to trade Singapore stocks with IG

Are you feeling bullish or bearish on UOB, SATS, ThaiBev and other Straits Times Index (STI Index) stocks? Either way you can buy (long) or sell (short) the asset using derivatives like CFDs offered on IG's world-class trading platform in a few easy steps:

• Create a live or demo IG Trading Account or log in to your existing account
• Enter <company name> or <ticket code> in the search bar and select it
• Choose your position size
• Click on ‘buy’ or ‘sell’ in the deal ticket
• Confirm the trade