Singapore's stocks are poised for a six-year high thanks to a revival in bank shares as optimism rises ahead of the upcoming earnings season.
Bloomberg reported today that the Straits Times Index climbed as much as 0.7% on Wednesday, set for the highest close since June 2018. Mapletree Pan Asia Commercial Trust and DBS Group Holdings Ltd. were among the biggest gainers on the gauge.
Banks have been a winner in the city-state's market in recent weeks, with shares touching record highs, thanks to strong dividend expectations. Lenders are expected to post strong earnings thanks to higher interest rates.
DBS, Oversea-Chinese Banking Corp. and United Overseas Bank Ltd. are expected to report second quarter results early August.
The bank shares "will continue to take the market higher in the short term due to their positive fundamentals including return on equity and payouts," said John Foo, founder of Valverde Investment Partners Pte.
Still, banks may face a reversal in fortunes once the Federal Reserve begins policy easing. Fed chairman Jerome Powell has remained careful not to offer a timeline for interest-rate cuts, though investors are now betting they will begin in September.
The "STI offers some of the best dividend yields in Asia," said Nirgunan Tiruchelvam, an analyst at Aletheia Capital. "As rates fall, the STI will stand out as a beacon," given that many of the companies provide regular income. They include the Real Estate Investment Trusts and Temasek Holdings Pte-linked firms.
新加坡股市有望創六年高點,這要歸功於銀行股的回升,因爲在即將到來的業績期來臨之前,樂觀情緒有所上升。
彭博社今天報道說,海峽時報指數週三上漲0.7%,創下2018年6月以來的最高收盤價。豐樹泛亞商業信託和星展集團控股有限公司是該指數中漲幅最大的股票。
最近幾周,銀行一直是該城市州市場的贏家,股價創歷史新高,這要歸功於強勁的股息預期。由於利率的提高,預計貸款機構將公佈強勁的收益。
星展銀行、華僑銀行和大華銀行有限公司預計將在8月初公佈第二季度業績。
Valverde Investment Pte創始人約翰·富表示,銀行股票 “由於其積極的基本面,包括股本回報率和派息,將在短期內繼續推動市場走高。”
儘管如此,一旦聯儲局開始放鬆政策,銀行仍可能面臨命運逆轉。聯儲局主席傑羅姆·鮑威爾一直謹慎行事,不要提供降息的時間表,儘管投資者現在押注降息將在9月開始。
Aletheia Capital的分析師尼爾古南·蒂魯切爾瓦姆表示:“STI的股息收益率是亞洲最好的。”鑑於許多公司提供固定收入,“隨着利率的下降,STI將脫穎而出。”它們包括房地產投資信託基金和淡馬錫控股私人交易所關聯公司。