SET Index strengthens at midday as progress in U.S.-Iran talks lifts Asian markets
Progress in peace talks between the United States and Iran eased market fears of a breakdown, lifting most Asian stock markets. Singapore’s Straits Times Index rose 0.22%, or 11.31 points, to close at 5,204.01 on Monday (June 22).
The STI fell at the open and traded choppily, but rebounded sharply near the close to return to the 5,200 level.
OANDA senior market analyst Wang Suiqin told Lianhe Zaobao that the late recovery in the STI was mainly supported by news of positive progress in the U.S.-Iran talks. The two sides will continue technical-level consultations and have agreed on a roadmap for reaching a final deal within 60 days.
Japan hits another record close: AI and semiconductors lead
In regional markets, Japan’s Nikkei 225 set another record closing high, rising 1.55% on the day to 72,353.96 points. Leading the gains were artificial intelligence (AI) and semiconductor-related stocks.
Earlier, the Nihon Keizai Shimbun reported that the Japanese government plans to drive combined public and private investment of 370 trillion yen (about US$229 billion) by 2040 in 17 fields, including AI, semiconductors, and aerospace. After the news broke, markets expected stronger investment in growth sectors, pushing up semiconductor, robotics and AI-related tech stocks.
Markets in Seoul, Shanghai and Shenzhen also rose, with gains ranging from 0.69% to 2.75%. Hong Kong and Sydney closed down 0.65% and 0.18% respectively.
Funds and risks: AI still a hedge, PCE and geopolitics in focus
ACCM research director Glenn Yin said Monday’s trading showed that AI remains the strongest factor cushioning geopolitical tensions and high interest rates.
Nomura Securities equity strategist Watanabe Akiyama said AI-linked companies once again became the main force behind the market’s rise. Still, the market remains highly alert to developments in Iran and the Middle East.
Beyond geopolitics, Wang Suiqin said investors are also watching U.S. personal consumption expenditures (PCE) data due Thursday (25th). If core inflation reaches above 3.3%, the Federal Reserve’s policy stance may turn more hawkish, pushing up the U.S. dollar and potentially triggering profit-taking in Singapore stocks.
However, as the STI remains above its 20-day moving average, Wang Suiqin remains bullish on its short-term outlook, with resistance at 5,350 points.
Singapore trading data and stock moves
Singapore stocks traded 1.26 billion shares on Monday, with turnover of S$2.01 billion; 270 stocks rose and 306 fell.
Among STI constituents, 12 rose, three were unchanged and 15 declined.
Leading the gains was DFI Retail Group (DFIRG), up 3.8% to close at US$3.82. The biggest loser was Jardine Matheson Holdings (JMH), down 3.95% to close at US$62.20.
On individual stocks, GuocoLand Limited subsidiary GLL IHT Pte. Ltd. has priced notes of S$110 million at a 2.5% coupon, with issuance expected on June 30.
The notes are part of the company’s S$3 billion multicurrency medium-term note programme. Proceeds will be used to cover operating expenses for GuocoLand and its subsidiaries. The notes mature on September 30, 2030 and pay interest semiannually on March 30 and September 30 each year, with the first payment date on March 30, 2027.
GuocoLand shares fell 0.46% on Monday to close at S$2.18.
Apparel retailer FJ Benjamin placed 42 million new shares at 0.72 cent each to two investors, one of whom is Yu Yiming, a fourth-generation heir of local TCM chain Eu Yan Sang.
In a statement, the company said Yu subscribed for 14 million shares for S$100,800. The other investor, Rosslyn Leong Sou Fong, subscribed for the remaining 28 million shares worth S$201,600. After the placement, Yu Yiming and Rosslyn Leong Sou Fong hold 1.14% and 2.28% of the company respectively.
FJ Benjamin closed at 0.8 cent, unchanged.
