Investors in Singapore are likely eyeing the release of important local economic data at the end of the week but sentiment has been cushioned by a rally over the past week.
Singapore’s third-quarter economic data is due on Thursday while industrial production numbers will be released on Friday.
Both sets of figures are coming out amid a slew of gloomy economic signs, which has had some forecasters warning that a technical recession might be possible.
However, this seemed far from the minds of local investors, who pushed the benchmark Straits Times Index up 0.85 per cent this past week by snapping up oversold banking and commodity counters.
They were likely buoyed by Wall Street, which had rallied to record highs following Donald Trump’s shock victory in the United States presidential election on Nov 8.
However, the election-fuelled rally moderated on Friday, which may signal a pullback in Asia when markets open today.
Regional investors also had their eyes on the Asia-Pacific Economic Cooperation summit in Peru, for signs of what regional leaders would do, now that the fate of the Trans-Pacific Partnership hangs in the balance.
Mr Trump has said he would scrap the massive trade deal involving 12 countries.
Financial counters powered most of the gains last week, both on Wall Street and at home.
DBS Group has rallied 9.1 per cent since Nov 9, OCBC gained nearly 5 per cent and UOB rose 6.2 per cent.
The commodity sector is also picking up investor interest, noted CMC Markets analyst Margaret Yang.
“There’s speculation of more merger and acquisition deals in distressed oil and gas companies. The valuation of the Singapore stock market is now among the lowest in Asia, which makes it attractive to value investors as well as overseas buyers,” she added.
The US dollar, seen a safe haven currency in times of uncertainty, has been strengthening steadily against Asian currencies since the election.
gleong@sph.com.sg
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