Singapore stocks open higher on Tuesday; STI up 0.8%

SINGAPORE shares opened higher on Tuesday as investors continue to place their bets on a strong economic recovery from the Covid-19 pandemic.

The Straits Times Index (STI) advanced 25.85 points or 0.8 per cent to 3,097.01 as at 9.02am.

Gainers outnumbered losers 99 to 49, after 75.4 million securities worth S$210 million changed hands.

The most heavily traded counter by volume was Shen Yao, with 30.2 million shares worth S$90,000 changing hands. The counter fell 25 per cent or 0.1 Singapore cent to 0.3 cent as at 9.36am.

The most heavily traded counter by value was DBS, with 1.2 million shares worth S$34.1 million changing hands. The counter was trading almost 2 per cent or S$0.56 higher at S$28.96 as at 9.01am.

Singapore Airlines climbed 1.2 per cent or S$0.06 to S$5.21, after the airline announced that its International Air Transport Association's Travel Pass software was in the trials. The trial's success could potentially remove the need for stay-home notices or quarantine for travellers in the future.

Shares of Jardine Matheson gained 0.3 per cent or US$0.20 to US$62.20, after analysts noted that the offer price of US$33 per share for Jardine Strategic is at a significant discount to its net asset value.

All three local banks were up in early trade. DBS rose 2 per cent or S$0.56 to S$28.96, OCBC gained 1.6 per cent or S$0.18 to S$11.80, while UOB advanced 0.9 per cent or S$0.23 to S$25.91 as at 9am.

Over on Wall Street, investors continued to bet on a strong recovery in industrial and travel companies, as well as other likely winners of the post-pandemic economy. After surging to all-time records during the session, the Dow Jones Industrial Average pulled back at the close, but still finished 1 per cent higher at 31,802.44. However, the tech-rich Nasdaq Composite Index tumbled 2.4 per cent to 12,609.16, while the broad-based S&P 500 declined 0.5 per cent to 3,821.35.

Meanwhile, European shares closed higher on Monday, lifted by banks and automakers as investors eye an economic rebound ahead. The pan-European Stoxx 600 index gained 2.2 per cent, its best one-day performance since early November.

Elsewhere in Asia, Tokyo shares opened lower on Tuesday after a mixed session on Wall Street. The benchmark Nikkei 225 index was down 0.3 per cent or 81.75 points at 28,661.50 in early trade, while the broader Topix index gained 0.2 per cent or 2.94 points to 1,896.52.