STI closes marginally higher by 0.13%, with all eyes on Budget 2021

SINGAPORE shares extended marginal gains for the second straight day as all eyes were on the nation's Budget 2021, which, among other things, extended the much-needed wage support to the hardest-hit sectors in the pandemic, and provided households more spending power.

The key Straits Times Index finished at 2,935.34 after advancing 3.82 points or 0.13 per cent. Key regional gauges in Japan, Hong Kong, South Korea and Australia also chalked up gains; Malaysia bucked the general trend and finished in the red.

Sentiments in equities stayed upbeat, owing to the same confluence of factors from US stimulus package, dovish central banks and vaccine roll-outs that have picked up pace. Also, while Wall Street had an off-day on Monday with the Presidents' Day holiday, the futures indicated continued gains as it starts the week on Tuesday, adding to the cheery mood.

On the local bourse, turnover stood at 2.69 billion worth S$1.12 billion. Gains were led by DBS, Singtel and Wilmar International.

ComfortDelGro fell one Singapore cent or 0.6 per cent to S$1.57. DBS Group Research issued a "buy" rating on the counter with a 12-month target price of S$1.99, saying that a recovery is on the cards and the current price seems "unjustifiably low". This followed the land transport operator's FY2020 results, in which it announced a 77 per cent drop in net profit to S$61.8 million from a year ago, as revenue fell 17 per cent to S$3.22 billion owing to pandemic-led lockdowns across the countries where it operates.

Mapletree Logistics Trust (MLT) closed unchanged at S$1.95. MLT manager announced late on Monday that it has acquired five freehold logistics properties in South Korea for 280 billion won (S$336 million).