Post by : Badri Ariffin

Singapore shares finished higher on Wednesday (Jul 22), supported by a rebound in global semiconductor stocks. Strong gains in chip-related counters helped push the benchmark Straits Times Index (STI) higher, while local banks also ended the day in positive territory.

The market also marked an important development with the launch of the Singapore Exchange's (SGX) first US Singapore Depository Receipts (SDRs), giving local retail investors easier access to selected global companies.

STI Climbs 1.2% as Gainers Outnumber Losers

The benchmark Straits Times Index (STI) rose 68.70 points, or 1.2%, to close at 5,595.42.

Across the broader market, 290 stocks advanced while 279 declined. A total of 1.2 billion securities worth S$2.4 billion changed hands during the trading session.

The gains came as semiconductor-related shares recovered, following stronger sentiment across global chip stocks.

Yangzijiang Shipbuilding Leads Blue-Chip Gainers

Among the STI's constituent stocks, Yangzijiang Shipbuilding recorded the strongest performance of the day.

The stock climbed 5.6%, gaining S$0.21 to finish at S$3.94, making it the top-performing blue-chip counter on Wednesday.

Singapore Airlines Ends as Biggest Loser

While most major stocks advanced, Singapore Airlines was the weakest performer among the STI constituents.

Its shares fell 1.8%, or S$0.14, to close at S$7.65.

Local Banks Finish the Day Higher

Singapore's three major banks all posted gains.

• DBS rose 2.3%, adding S$1.66 to close at S$73.66.
• OCBC gained 1.9%, increasing S$0.54 to finish at S$29.18.
• UOB advanced 0.7%, up S$0.32 to end at S$43.04.

Their positive performance contributed to the overall strength of the Singapore market.

Next 50 Index Shows Mixed Performance

Within the iEdge Singapore Next 50 Index, ValueMax emerged as the strongest performer.

The stock gained 4.8%, rising S$0.045 to close at S$0.99.

Meanwhile, CSE Global recorded the biggest decline in the index, falling 3.8%, or S$0.05, to finish at S$1.25.

Regional Markets Deliver Mixed Results

Stock markets across Asia ended the day with mixed performances.

Hong Kong's Hang Seng Index declined 1%, while Japan's Nikkei 225 slipped 0.2%. Malaysia's FTSE Bursa Malaysia KLCI fell 0.5%, whereas South Korea's Kospi gained 0.7%.

TSMC Price Reports Support Chip Sector

James Ooi, market strategist at Tiger Brokers, said reports suggesting that major chip manufacturer TSMC could increase chipmaking prices by up to 10% in 2027 were viewed positively by investors.

According to Ooi, the reports were interpreted as "signs of sustained demand and continued industry pricing power."

SGX Launches First US Singapore Depository Receipts

Wednesday also marked the debut of SGX's first US Singapore Depository Receipts (SDRs).

The newly listed SDRs cover Sea, Grab and SpaceX, providing retail investors with a simpler way to gain exposure to these companies while trading in Singapore dollars.

Trading activity remained relatively subdued on the first day.

• The SpaceX US SDR (100 to 1) opened at S$1.63 and closed at S$1.61.
• The Grab US SDR (2 to 1) started at S$2.30 before ending at S$2.27.
• The Sea US SDR (50 to 1) opened at S$2.78 and finished at S$2.74.

Market Strategist Sees Positive Milestone

Despite the muted trading performance, Ooi described the SDR launch as a "positive milestone" for Singapore's equity market.

He said, "The addition of high-profile technology stocks is expected to broaden market participation by attracting younger and growth-oriented investors, while further broadening investment themes in Singapore's equity market beyond established income-focused offerings."

Ooi also said that expanding the range of SDRs could increase overall market activity and create positive spillover effects for liquidity across Singapore's broader equity market.

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