Singapore Stocks Set for Record as Banking Sector Drives Rally

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Finance Nouvelles

Singapore Stocks,Straits Times Index,Banking Sector

Singapore's stock market is on track to hit a record high, powered by optimism in the banking sector. The Straits Times Index (STI) has risen 0.9 per cent, with banking stocks leading the way. The STI's 18 per cent gain this year makes it the top performer in South-east Asia.

Singapore stocks are heading towards a record high, buoyed by renewed optimism in the city-state’s banking sector. The benchmark Straits Times Index (STI) surged 0.9 per cent on Dec 5, poised to surpass its previous record from October 2007. Major gains in DBS Group Holdings and other banking stocks have driven the market rally, with analysts noting the resilience of lenders in maintaining profitability amid anticipated lower interest rates.

The STI's impressive performance of 18 per cent this year makes it the top-performing stock market in South-east Asia. While banks face narrowing net interest margins, steady loan growth and deposit cost management have helped to counter some of the adverse effects. The Monetary Authority of Singapore has maintained its monetary policy unchanged for the year, but there are growing expectations of a future easing

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