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STI Gains 0.63% to 5,437.99 as Venture Jumps 2.21%, Thai Beverage Falls 2.35%

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The Straits Times Index rose 0.63% to 5,437.99, driven by gains in property developers and REITs, alongside a recovery in local banks. Venture Corporation led the rally with a 2.21% increase following BlackRock's stake adjustment, while Thai Beverage fell 2.35% despite positive corporate developments. Broad market sentiment was positive, with advancers outnumbering decliners significantly.

The Straits Times Index rose 33.97 points, or 0.63%, to close at 5,437.99 on Wednesday, trading between 5,404.87 and 5,458.29 during the session. Advancers outnumbered decliners 22 to 4 across the 30-member basket, with four names unchanged, as broad gains across property, REIT and banking counters outweighed a single decline of note in Thai Beverage.

The rally was broad rather than led by a single catalyst: property developers UOL, City Developments and Hongkong Land each added more than 1.5%, while Ascendas REIT paced a rebound across real estate investment trusts that had closed broadly lower for much of October. The three local banks also reversed Tuesday's rare synchronized slip, with UOB, OCBC and DBS all finishing higher, albeit with more modest gains than the session's property and REIT leaders. Thai Beverage was the one significant drag, slipping 2.35% with no fresh negative company disclosure behind it.

Session Movers

Venture Corporation (V03.SG, +2.21%) rose to $15.75 after BlackRock disclosed Wednesday that it had ceased to be a substantial shareholder, with its stake falling to 4.87% from 5.31% — a reduction of 13,982,288 shares tied to a decrease in shares held as collateral — a day after a separate filing had shown the opposite move, with BlackRock's deemed stake rising to 5.31% from 4.8%. The swing looks technical rather than directional. Shares trade at 18.98 times earnings, cheaper than roughly 78% of the past year, with a consensus Buy rating and a target implying about 23% upside.

Thai Beverage (Y92.SG, -2.35%) fell to $0.42 even as its InterBev unit disclosed the formation of VinaBeCo, a wholly owned Vietnam subsidiary capitalized with VND1.2 billion to expand the group's local operations; the decline came with no negative company disclosure behind it. Shares trade at 10.78 times earnings, cheaper than 97% of the past five years, with a consensus Buy rating implying about 21% upside.

UOB (U11.SG, +1.4%) rose to $42.00, continuing the local banks' reversal from Tuesday's synchronized decline, with the lender's confirmed November 4 release of third-quarter performance highlights — announced October 15 — the sector's next scheduled catalyst. Shares trade at 1.38 times book, above what the valuation measure flags as a reasonable range and cheaper than just 6.75% of the past five years, with a consensus Hold rating implying about 4% upside.

CICT (C38U.SG, +1.36%) rose to $2.23, bucking a REIT sector that had closed lower across all seven of its basket counters a day earlier amid pressure from elevated US Treasury yields; no fresh company disclosure accompanied Wednesday's gain. Shares trade at 1.02 times book, within a reasonable range and cheaper than about 36% of the past five years, with a consensus Buy rating implying nearly 19% upside.

One point worth noting

Property and REIT counters led Wednesday's advance while the three local banks posted more modest gains of 0.3% to 1.4% apiece. The divergence shows up in valuation too: UOB trades at 1.38 times book, above its own reasonable range and cheaper than just 6.75% of the past five years, with only about 4% upside to its Hold-rated consensus target. CICT, which closed higher despite a REIT sector that had fallen across the board a day earlier, trades at 1.02 times book — within its reasonable range — with a Buy rating implying nearly 19% upside.

Source: SGX Close Recap The copyright of this article belongs to the original author/organization.

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