US-Iran Talks Progress Boost Asian Stocks; STI Up 0.22%

Progress in US-Iran peace talks eased market concerns over a breakdown, lifting most Asian stock markets. Singapore's Straits Times Index rose 0.22% or 11.31 points on Monday (June 22) to close at 5204.01 points.

The STI opened lower and fluctuated but rebounded in late trade, returning to the 5200 level.

OANDA Senior Market Analyst Wang Suiqin told Lianhe Zaobao that the late rebound was mainly driven by positive news from US-Iran talks. Both sides will continue technical-level consultations and agreed on a roadmap to reach a final agreement within 60 days.

Regionally, Japan's Nikkei 225 hit a new closing high, up 1.55% to 72,353.96 points, led by AI and semiconductor-related stocks.

Nikkei earlier reported that the Japanese government plans to drive a combined 370 trillion yen (about $2.29 trillion) investment from public and private sectors in 17 fields including AI, semiconductors, and aerospace by 2040. The news boosted expectations for increased investment in growth sectors, lifting semiconductor, robotics, and AI-related tech stocks.

Seoul, Shanghai, Shenzhen markets also rose, with gains between 0.69% and 2.75%. Hong Kong and Sydney fell 0.65% and 0.18% respectively.

ACCM Research Director Glenn Yin said Monday's trading showed AI remains the strongest factor against geopolitics and high interest rates.

Nomura equity strategist Wataru Akiyama said AI-related companies again led the rally, but markets remain vigilant on Iran and Middle East developments.

Apart from geopolitics, Wang Suiqin noted markets are also watching US PCE data due Thursday (25th). If core inflation exceeds 3.3%, Fed policy may turn more hawkish, boosting the dollar and triggering investor profit-taking in Singapore stocks.

However, with the STI staying above its 20-day moving average, Wang remains bullish on short-term outlook, with resistance at 5350 points.

Singapore Market Trading and Index Component Performance

Total trading volume on Monday was 1.26 billion shares, total value SGD 2.01 billion. 270 stocks rose, 306 fell.

Among STI constituents, 12 rose, 3 flat, 15 fell.

Top gainer was DFI Retail Group (DFIRG), up 3.8% to USD 3.82. Top loser was Jardine Matheson Holdings (JMH), down 3.95% to USD 62.2.

Corporate Updates: Note Pricing and Share Placement

On corporate news, GuocoLand subsidiary GLL IHT Pte. Ltd. priced notes of SGD 110 million with a 2.5% coupon, expected to be issued on June 30.

The notes are part of the SGD 3 billion multi-currency MTN program, proceeds for working capital. Notes mature Sept 30, 2030, semi-annual interest on March 30 and September 30 each year, first payment March 30, 2027.

GuocoLand shares fell 0.46% to SGD 2.18.

FJ Benjamin placed 42 million new shares at SGD 0.0072 per share to two investors, including Eu Yan Sang fourth-generation descendant Eu Yi Ming.

The company stated that Eu Yi Ming subscribed 14 million shares (SGD 100,800). Another investor Rosslyn Leong Sou Fong subscribed the remaining 28 million shares (SGD 201,600). After placement, Eu Yi Ming and Rosslyn Leong each hold 1.14% and 2.28% of the company respectively.

FJ Benjamin shares closed flat at SGD 0.008.