US-Iran Talks Boost Asian Stocks; STI Up 0.22%
Progress in US-Iran peace talks eased market concerns over a breakdown, boosting most Asian markets. The Straits Times Index rose 0.22% or 11.31 points on Monday (June 22) to close at 5,204.01 points.
The STI opened lower and fluctuated, but rebounded in late trade to return to the 5,200 level. OANDA Senior Market Analyst Wang Suiqin said the late rebound was mainly driven by positive news on US-Iran talks. Both sides agreed to continue technical-level consultations and reached consensus on a roadmap for a final agreement within 60 days.
In regional markets, Japan's Nikkei 225 closed at a new all-time high, rising 1.55% to 72,353.96 points, led by AI and semiconductor-related stocks. Nikkei earlier reported that the Japanese government plans to invest a total of 370 trillion yen (about $2.29 trillion) in 17 areas including AI, semiconductors, and aerospace by 2040. The news boosted expectations of increased investment in growth sectors, lifting semiconductor, robotics, and AI tech stocks.
Seoul, Shanghai, and Shenzhen markets also rose, with gains ranging from 0.69% to 2.75%. Hong Kong and Sydney fell 0.65% and 0.18% respectively. Glenn Yin, Research Director at ACCM, said Monday's trading showed AI remains the strongest factor against geopolitics and high interest rates. Nomura equity strategist Wataru Akiyama said AI-related companies again led the rally, but the market remains highly alert to Iran and Middle East developments.
Besides geopolitics, Wang Suiqin believes the market also awaits the US PCE data due Thursday (June 25). If core inflation reaches 3.3% or higher, the Fed's monetary policy could turn more hawkish, strengthening the dollar and possibly triggering profit-taking in Singapore stocks. However, with the STI staying above its 20-day moving average, Wang remains bullish on the short-term outlook, with resistance at 5,350 points.
Local Stocks: More Declines Than Gains
Singapore stocks had a total trading volume of 1.26 billion shares and total turnover of S$2.01 billion on Monday. There were 270 gainers and 306 losers. Among STI components, 12 rose, three were flat, and 15 fell. DFI Retail Group (DFIRG) led gainers, up 3.8% to close at US$3.82. Jardine Matheson Holdings (JMH) fell the most, down 3.95% to close at US$62.20.
In corporate news, GuocoLand subsidiary GLL IHT Pte. Ltd. priced S$110 million notes with a 2.5% coupon, expected to be issued on June 30. The notes are part of the company's S$3 billion multi-currency medium-term note programme, with proceeds for operating expenses of GuocoLand and its subsidiaries. The notes mature on September 30, 2030, with semi-annual interest payments on March 30 and September 30 each year, starting March 30, 2027. GuocoLand shares fell 0.46% to S$2.18 on Monday.
Fashion retailer FJ Benjamin placed 42 million new shares at S$0.0072 per share to two investors, including Eu Yan Sang fourth-generation heir Eu Yee Ming. The company said Eu Yee Ming subscribed for 14 million shares worth S$100,800. Another investor, Rosslyn Leong Sou Fong, subscribed for the remaining 28 million shares worth S$201,600. After placement, Eu holds 1.14% and Rosslyn holds 2.28% of the company. FJ Benjamin shares closed at S$0.008, unchanged.
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