Singapore stocks rebound on optimism over Iran war resolution; STI up 1.8%

[SINGAPORE] Stocks on the local bourse closed higher on Wednesday (Apr 1), tracking regional gains as optimism grew over the possibility of the Iran conflict coming to an end.

The benchmark Straits Times Index (STI) advanced 1.8 per cent or 90.38 points to finish at 4,975.83.

Jardine Matheson led the gainers on the blue-chip index, rising 4.8 per cent or US$3.40 to US$74.55. The sole decliner among STI constituents was Wilmar International , which fell 0.3 per cent or S$0.01 to S$3.84.

All three local banks ended Wednesday higher. DBS gained 1.2 per cent or S$0.66 to S$57.56, and UOB was up 1 per cent or S$0.38 at S$37.03. OCBC gained 2.6 per cent or S$0.58 to S$22.55, pushing the bank’s market capitalisation past the S$100 billion mark.

The iEdge Singapore Next 50 Index lost 0.3 per cent or 3.92 points to 1,449.14.

Pan-United Corporation was the index’s top gainer, rising 6.5 per cent or S$0.10 to S$1.65. Golden Agri-Resources was the biggest decliner, falling 1.6 per cent or S$0.005 to end the session at S$0.30.

Across the broader market, gainers outnumbered decliners 468 to 176, after 1.7 billion securities worth S$2.3 billion changed hands.

Key regional indices closed higher, driven by growing optimism over the potential resolution of the Iran conflict. Hong Kong’s Hang Seng Index gained 2 per cent, Japan’s Nikkei 225 rose 5.2 per cent, South Korea’s Kospi surged 8.4 per cent, and the FTSE Bursa Malaysia KLCI advanced 1.1 per cent.

“Hope that the Iran war could end soon fuelled optimism yesterday,” said Swissquote senior analyst Ipek Ozkardeskaya.

This came after US President Donald Trump “announced willingness to pull back and Iran State News reported a phone call between an EU councillor and Iran’s president suggesting ‘necessary will to end the war’ if guarantees are met”, she noted.

“Moving forward, all eyes will be on the next earnings season and the impact of the Iran war and higher energy prices across industries.”