Singapore shares hit 17-year high on market revival efforts
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Singapore stocks hit highest level since Nov 2007
Ringgit rises 0.3%, Taiwan dollar gains 0.2%
By Sneha Kumar
Nov 19 (Reuters) -Singapore shares jumped to a 17-year high on Tuesday, powered by a rally in index heavyweight financials, as the city-state ramps up efforts to revive its stock market.
The Straits Times Index .STI, comprising 30 biggest companies in the city-state, rose as much as 0.9% to touch a level unseen since November 2007. It has gained 16% so far this year, outperforming most of its rivals in the region.
In August, the Monetary Authority of Singapore (MAS) said it had formed a review group to recommend steps to strengthen the development of the equities market in the island country, which hosts more than $4 trillion of assets under management.
"The combination of seemingly stronger political will and low market expectations drives our conviction that soon-to-be announced initiatives will likely have a meaningfully positive market impact, even if their exact details are still to be fleshed out," Morgan Stanley analysts said in a note.
DBS Group DBSM.SI, Oversea-Chinese Banking Corp OCBC.SI and United Overseas Bank UOBH.SI rose between 0.4% and 0.6%.
The Singapore dollar SGD= traded largely flat.
Among other stock markets in Southeast Asia, Thailand .SETI and Taiwan .TWII rose 0.9% and 1.4%, respectively.
On Monday, Thailand reported better-than-expected economic growth for the July-September period, although rising government spending and slowing private consumption remain a concern.
The latest economic data is expected to maintain pressure on the central bank to lower interest rates further, helping Thai stocks rise to their highest since Nov. 8.
"Considering uncertainty surrounding the growth outlook, the still elevated real policy rate, and weak credit growth, it is too early to rule out further monetary policy easing in 2025," ANZ analysts said in a note.
Among currencies in the region, the Taiwan dollar TWD=TP and the Malaysian ringgit MYR= gained 0.2% and 0.3%, respectively, against an easing U.S. dollar.
The ringgit is the only Asian currency that has gained so far this year, as the Malaysian economy stays on track to meet official forecasts, reflecting a jump in investments and boost in domestic spending.
HIGHLIGHTS:
** Bank Indonesia to keep rates steady on Nov. 20 to stabilise battered rupiah
** Philippine central bank signals more rate cuts ahead
** Thai Q3 GDP growth beats forecast, but risks seen ahead
Asian currencies and stocks as of 0357 GMT | ||||||
COUNTRY | FX RIC | FX DAILY % | FX YTD % | INDEX | STOCKS DAILY % | STOCKS YTD % |
Japan | JPY= | +0.31 | -8.50 | .N225 | 0.73 | 15.66 |
China | CNY=CFXS | +0.00 | -1.85 | .SSEC | -0.39 | 11.30 |
India | INR=IN | -0.02 | -1.41 | .NSEI | 0.32 | 8.27 |
Indonesia | IDR= | +0.22 | -2.62 | .JKSE | 0.99 | -0.93 |
Malaysia | MYR= | +0.34 | +2.85 | .KLSE | 0.20 | 10.49 |
Philippines | PHP= | +0.07 | -5.56 | .PSI | 0.40 | 5.25 |
S.Korea | KRW=KFTC | +0.24 | -7.34 | .KS11 | 0.30 | -6.74 |
Singapore | SGD= | +0.04 | -1.41 | .STI | 0.82 | 16.13 |
Taiwan | TWD=TP | +0.24 | -5.30 | .TWII | 1.36 | 27.45 |
Thailand | THB=TH | -0.10 | -1.22 | .SETI | 0.90 | 3.53 |
Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
Asian stock markets https://tmsnrt.rs/2zpUAr4
Reporting by Sneha Kumar in Bengaluru; Editing by Subhranshu Sahu
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