Singapore’s STI lifted by three banks, ends up 1.2% on Monday

THE Straits Times Index ended Monday (Sep 9) at 3,496.53 points, up 1.2 per cent or 42.06 points, thanks to upward movements at all three local banks.

OCBC was the biggest winner, rising 2.5 per cent or S$0.37 to close the day at S$15. DBS closed up 1.8 per cent or, S$0.66, at S$37.19. UOB closed at S$31.89, up S$0.43 or 1.4 per cent.

Their outperformance helped reverse a fall in morning trading that had been negatively impacted by weak jobs data out of the United States on Friday last week. The general market direction remained weak, however, with decliners edging out gainers 298 to 244.

Geotechnical engineering company CSC Holdings was in play following contract wins. The counter was the most heavily traded by volume, with 40.2 million shares changing hands.

CSC announced on Friday last week, after the close of trading, that it has secured over S$150 million worth of contracts since the start of its financial year on Apr 1.

As at Aug 31, its order book was worth S$320 million. “The bulk of orders” are to be delivered within the next 12 months, CSC said in its statement. Shares of CSC closed at S$0.009, up S$0.002 or 28.6 per cent.

Paul Chew, head of research at Phillip Securities Research, wrote in a note to clients on Monday: “In Singapore, the hottest sector is likely construction.”

Chew noted that jobs awarded in July almost trebled year on year, and and contracts awarded over the past 12 months have reached the highest figure in a decade.

“The next two years will be especially buoyant,” he added, pointing to scheduled works with Chang Airport’s fifth terminal and expansion of the two integrated resorts. “The entire construction sector is a ‘buy’, but our strategy has been the ‘picks and shovels’ – building materials suppliers with huge market share.”