Singapore stocks advance after Nasdaq ends at record high; STI up 0.4% at open

SINGAPORE shares opened higher on Wednesday, following a strong lead from Wall Street overnight on optimism over US stimulus talks.

The Straits Times Index (STI) advanced 9.95 points or 0.4 per cent to 2,866.67 as at 9.01am. Gainers outpaced losers 108 to 27, after 103.1 million securities worth S$61.1 million changed hands.

Among the index stocks, the most heavily traded counter was Singtel, which was flat at S$2.36, with 1.9 million shares traded.

Meanwhile, Genting Singapore gained 1.5 Singapore cents or 1.8 per cent to 87 cents, with 1.8 million shares changing hands.

Maybank Kim Eng (MKE) has upgraded its recommendation on the integrated resort operator to "buy" from "hold", and raised its target price to S$0.95, from S$0.78 previously. In a research note on Tuesday, MKE analyst Yin Shao Yang noted that Phase Three of Singapore's reopening will be positive for Genting Singapore, marking the start of its recovery.

The trio of local lenders were up in early trade. DBS gained S$0.06 or 0.2 per cent to S$25.52, OCBC added S$0.05 or 0.5 per cent to S$10.16, while UOB edged up S$0.02 or 0.1 per cent to S$22.91.

Other active securities include Nanofilm Technologies International, which jumped S$0.15 or 3.4 per cent to S$4.54. Earlier this week, CGS-CIMB initiated coverage on Nanofilm with an "add" rating and a S$5.52 target price. This is given its proprietary technology and sole supplier status to major customers, CGS-CIMB said.

Over on Wall Street, US stocks climbed on Tuesday as investors welcomed signs of progress in negotiations over a federal spending package.

All three major indices finished solidly higher, with the tech-focused Nasdaq powering to a fresh record, gaining 1.3 per cent to 12,595.06. The Dow Jones Industrial Average rose 1.1 per cent to close at 30,199.31, while the broad-based S&P 500 climbed 1.3 per cent to 3,694.62.

European shares rose on Tuesday, after the European Union moved up the date to approve a Covid-19 vaccine, while London's blue-chips lost as stricter Covid-19 restrictions tied in with a higher pound on Brexit trade deal hopes. The pan-European Stoxx 600 index added 0.3 per cent, while Germany's DAX jumped 1 per cent for its best day in three weeks.

Elsewhere in Asia, Tokyo stocks opened higher on Wednesday as investors took heart from rallies on Wall Street. The benchmark Nikkei 225 index advanced 0.7 per cent or 178.58 points to 26,866.42 in early trade, while the broader Topix index was up 0.7 per cent or 12.80 points at 1,794.85.