GAINS in Singtel, Thai Beverage and the banks helped propel the Straits Times Index (STI) up 26.2 points or almost one per cent to 2,945.74 on Wednesday.
Turnover rose from Tuesday's S$935 million to 1.2 billion units worth S$1.2 billion, boosted not just by active trading of Singtel but also heavy selling of Wilmar International, which said it expects a loss of US$230 million for its second quarter ended June 30.
Although the STI turned in a strong showing, the broad market did not, recording an advance-decline score of 238-150 excluding warrants.
Wall Street's sixth consecutive all-time high on Tuesday probably played some part in elevating sentiment here, although the Dow futures on Wednesday traded marginally in the red.
Wilmar's S$0.19 or 5.7 per cent plunge to S$3.16 came with 62.3 million shares traded and accounted for S$193 million in dollar value. With Singtel's S$0.06 rise to S$4.30 on volume of 27.6 million valued at S$119 million, the two stocks contributed 26 per cent of the whole market's turnover.
OCBC Investment Research said that after adjusting for Wilmar's expected Q2 loss, it has reduced its FY16 earnings estimate by 25 per cent and FY17 by 5 per cent and this lowers its fair value for Wilmar from S$3.34 to S$3.05. "We also downgrade our call from Hold to Sell and would probably re-engage closer to S$2.85," said the broker.
Deutsche Bank, in the meantime, maintained a "hold'' on Wilmar with S$3.50 target while RHB cut its target price from S$3.99 to S$3.28.