S’pore stocks erase Covid loss as reopening, value take hold

The cyclicals-heavy Straits Times Index has been hovering close to its January 2020 high of 3,281.03 since Friday. The gauge has risen 5% this year with lenders such as United Overseas Bank Ltd and restructured firms such as Sembcorp Industries Ltd among gainers.

SINGAPORE: Singapore’s equity benchmark has erased losses accrued during the pandemic thanks to the nation’s policy of living with the virus and a global rotation toward value stocks.

The cyclicals-heavy Straits Times Index has been hovering close to its January 2020 high of 3,281.03 since Friday. The gauge has risen 5% this year with lenders such as United Overseas Bank Ltd and restructured firms such as Sembcorp Industries Ltd among gainers.

While Singapore has lagged behind many regional peers including tech-heavy South Korea and Taiwan in erasing losses triggered by the pandemic, a gamut of factors are putting the city-state in the driver’s seat for 2022.