Singapore’s benchmark index climbed 38 points, or 0.8%, to 4,985 on Wednesday, marking a third consecutive session of gains and reaching a three-week high. Sentiment was buoyed by April foreign exchange reserves, which rose to a four-year peak of SGD 544 billion. Investor optimism was further supported by anticipation of President Trump’s state visit to China from Wednesday to Friday—his first since 2017—which raised hopes for a reset in Sino-U.S. relations.
Upside momentum, however, was constrained by expectations of weaker tourism spending this year, as ongoing conflicts in the Middle East weigh on consumer and business confidence. On the policy front, the central bank tightened monetary settings in April and cautioned that an energy shock stemming from a potential Iran war could fuel core inflation. At the same time, the government introduced a support package to help mitigate the impact.
Gains were driven by the process industries, industrial services, and utilities sectors, while consumer non-durables and retail trade lagged. Among notable movers were DBS Group (up 0.7%), OCBC (1.7%), Singtel (1.1%), and Wilmar International (2.7%).
