Image Credits: Yahoo Finance
On August 13, the Straits Times Index (STI) witnessed a notable uptick of 0.7%, closing at 3,258.57 points, driven largely by gains in Yangzijiang Shipbuilding. The shipbuilder’s shares surged by 14.7%, ending the day at S$2.73, following the company’s impressive financial results and positive outlook.
Yangzijiang Shipbuilding reported a robust 77% increase in profit for the six months ending June 30, reaching 3.1 billion yuan (S$572 million). Revenue for the period also saw a substantial rise of 15%, totaling 13 billion yuan. The company’s strong performance was underpinned by a record-high order backlog, which DBS Bank analyst Ho Pei Hwa cites as a key factor for sustained earnings visibility through 2026. Hwa’s research note highlights the shipbuilder’s strategic shift towards cleaner vessel technologies, such as dual-fuel container ships and gas carriers, which now make up approximately 70% of its order book. This pivot is expected to attract further interest from Environmental, Social, and Governance (ESG) funds.
The broader Singapore market reflected a positive sentiment, with 347 stocks advancing compared to 179 decliners, on a trading volume of 1.03 billion securities valued at S$1.29 billion. Among local banks, OCBC Bank remained stable at S$13.83, UOB edged up by 0.2% to S$29.36, and DBS Bank rose 0.4% to S$34.12. However, Keppel Corp lagged, falling 2.5% to S$5.80.
Regional markets also experienced gains on August 13, with Japan’s Nikkei 225 Index rising by 3.5%, Hong Kong’s Hang Seng Index up by 0.4%, and South Korea’s Kospi Composite Index inching up by 0.1%.
Mathieu Racheter, Head of Equity Strategy Research at Julius Baer, commented on the renewed attractiveness of equities, noting that strong second-quarter earnings have made stocks appealing again. Racheter advised investors to begin assembling an “equity shopping list,” reflecting a positive shift in market sentiment and investment strategy.