Singapore shares up 0.2% amid mixed regional showing

[SINGAPORE] Singapore shares edged up on Thursday (Jul 3) amid a mixed showing by regional bourses after Vietnam inked a trade deal with the United States.

The blue-chip benchmark index, Straits Times Index, rose 8.8 points or 0.2 per cent to 4,019.57 points. This came after Vietnam became the first Asian country to secure a trade settlement with the US, avoiding the punitive reciprocal tariffs of 46 per cent initially imposed on it in April. However, it is still subject to a 40 per cent duty for transshipments. 

Deepali Bhargava, regional head of research for the Asia-Pacific at financial institution ING, said: “While the outcome isn’t as favourable as the current 10 per cent tariff rate, it’s still better than the potential 46 per cent reciprocal tariff Vietnam might have faced after the 90-day tariff pause ends on Jul 9. Therefore, it’s a bit of a mixed result.”

Investors, concerned that only three countries have made a trade pact with the US as the deadline looms, are wary of market turmoil if no deals are made by Jul 9 to annul the reciprocal tariffs imposed by President Donald Trump.

Over in Singapore, gainers led decliners 277 to 215 across the broader market amid heavy trading of 1.6 billion securities valued S$1.2 billion in total.

The counter of Oiltek International rose by S$0.03 or 5.4 per cent to S$0.59, after the mainboard-listed vegetable and edible oil processing company announced on Thursday that it is in talks to support a sustainable aviation fuel pilot plant programme by Sarawak Economic Development Corporation Energy, though no definitive agreements have been entered into.

Meanwhile, CapAllianz has been the most active counter this week, with 576.2 million shares transacted on Thursday. It finished flat at S$0.003. The Catalist-listed investment holding firm – which owns a subsidiary engaging in software development and IT consulting and holds a 20 per cent stake in oil concessions – recently booted some of its directors out.