Morning Wrap | Singapore Index Peaks; US Markets Climb on FOMC Outlook

Singapore shares opened lower on Thursday:

Today's Volume / Value: 31.58M / S$85.61M

Advancers / Decliners: 44 / 65

The market swung into a climb late Wednesday, in part after the FOMC meeting minutes showed members believed the rate tightening cycle was nearing its end, signaling a hope that rates have only one direction to go: down. The S&P 500 officially climbed for the first five trading sessions of the new year, a trend that historically signals an 83% likelihood of the market climbing in the year. Since 1950, the S&P 500 has climbed 73% of years.

Singapore's stock index reached a new record high, driven by rising bank stocks DBS, OCBC, and UOB. The government's initiatives to rejuvenate the equity market have positively influenced market sentiment. This milestone was achieved on Wednesday, with the benchmark closing at its highest level ever due to the strong performance in the banking sector.

The Johor-Singapore Special Economic Zone (SEZ) aims to attract 100 projects over the next decade, significantly benefiting banking, gaming, industrials, technology, and telecommunications. The initiative will capitalize on Johor’s strategic position to attract investments and strengthen its role as a data hub.

Additionally, industrial and technological sectors will benefit from green initiatives and competitive costs, while easier cross-border travel will boost the gaming sector. The SEZ strategy also includes improving operational efficiencies and shifting supply chains toward Southeast Asia, enhancing Singapore’s equity market and supporting multinational expansions with streamlined operations.