STI 0.8% higher following Wall Street gains; glove-maker stocks among biggest losers

SINGAPORE stocks ended Tuesday higher, following a coronavirus-fuelled stock market rally in which Wall Street booked gains, with investors buoyed by news of a newly-approved Covid-19 vaccine, as well as the potential easing of US-China trade tensions.

The Straits Times Index edged up 0.8 per cent or 20.42 points to close at 2,559.03. Advancers outnumbered decliners 243 to 200, after some 2.97 billion securities worth S$1.4 billion changed hands.

Stephen Innes, chief global markets strategist at AxiCorp, said that the news of a vaccine "opens the door wide to a rotating carousel of stocks" and "continues to underpin better sentiment" among investors.

He said: "While riding the high percentage of pandemic winners, the positive healthcare news flows will offer investors the luxury of buying into and waiting for the rest of the pack to play catch-up over the coming months and years."

QT Vascular was the most heavily traded stock of the day, with 527.3 million shares changing hands. Investors reacted to the news of the company's reverse takeover (RTO) plans through the acquisition of Tengri Coal and Energy (TCE).

Healthcare stocks were among the biggest decliners of the day. Glove makers such as Top Glove shed S$0.75 or 8.22 per cent to close at S$8.38; UG Healthcare lost S$0.26 or 10.16 per cent to S$2.30. Riverstone Holdings, too, ended the day S$0.19 or 4.58 per cent down at S$3.96. Medical apparel maker Medtecs International's share price slid S$0.26 or 15.48 per cent to S$1.42.

Among the constituent stocks, Singapore Airlines emerged the top gainer, adding S$0.12 or 3.26 per cent to close at S$3.80. The state's gradual reopening of its borders fuelled investor sentiment, with some 13.2 million shares traded over the course of the day.

Airline gateway services provider SATS saw its share price gain S$0.02 or 0.65 per cent to S$3.10 after CGS-CIMB upgraded its call on the company to a hold. The brokerage said the worst could be over for the group, and that it could look forward to better freight rates on the back of stronger demand for perishable and medical supplies.

Banks ended the day in positive territory. DBS gained S$0.20 or 0.96 per cent to S$20.99; OCBC added S$0.13 or 1.51 per cent to S$8.74. UOB closed S$0.21 or 1.06 per cent higher at S$20.06.

Elsewhere in Asia, the FTSE Bursa Malaysia KLCI Index slipped 0.87 per cent or 13.62 points to close at 1,554.96 points; the Nikkei 225 Index gained 1.35 per cent or 311.26 points. The Hang Seng Index lost 0.26 per cent or 65.36 points.