The Straits Times Index (STI) advanced 23 points, or 0.5%, to 5,292 in Thursday morning trade, rebounding from a largely flat performance in the previous session. The move tracked overnight gains on Wall Street after the Democrats regained control of Congress. The broader market pulled away from its lowest level since July 6, which had been hit over the prior two sessions on the back of disappointing earnings from major banks.
Sentiment was also supported by moderating oil prices, which helped ease inflation concerns and tempered expectations of further interest rate hikes. Financials, technology services, and consumer services led the rise in the STI, with notable gains in DFI Retail Group (up 4.3%), UOL Group (up 4.1%), SATS (up 3.1%), and Singapore Airlines (up 2.9%).
In contrast, UOB extended its decline, slipping 2.1% after reporting a 182% year-on-year surge in Q3 net profit that nonetheless fell short of market expectations. DBS Group eased 0.6% following a 5% year-on-year drop in net profit. Investors were also positioning ahead of Q3 results from fellow banking heavyweight OCBC, which is scheduled to report on Friday.
