Singapore shares advance with Asia despite rising virus infections

SINGAPORE shares advanced on Tuesday in a bargain-hunting session as investors dismissed rising infections in the region and a retreat on Wall Street.

The Singapore Straits Times Index ( *STI ) rose 2.04 per cent or 62.94 points to 3,142.63. Across the broader market, gainers outnumbered losers 384 to 120, after 2.21 billion securities worth S$1.63 billion changed hands.

"Singapore's latest social restrictions to battle a new wave of Covid-19 infections is unlikely to derail growth, in our view. The gross domestic product contribution of the most affected domestic sectors is limited and these are better prepared to respond to lockdowns than a year ago," Maybank Kim Eng analysts noted in a report.

Still, the news flow of rising rates of infections could raise market volatility, the analysts added.

Elsewhere in Asia, sentiment was upbeat as well with key benchmark indices ending the day higher. Japan's Nikkei 225 led gains in the region, climbing 2.09 per cent. Hong Kong's Hang Seng Index was up 1.42 per cent; Seoul's Kospi rose 1.23 per cent; the Kuala Lumpur Composite Index gained 0.50 per cent while the Jakarta Composite Index eked out 0.01 per cent.

The best-performing stock on the STI was Frasers Logistics & Commercial Trust ( BUOU ), which ended the day up 5.8 per cent or S$0.08 at S$1.46.

Transport-related stocks also fared well, emerging among the top-performing counters on the blue-chip index. Singapore Airlines (C6L) rose 4.7 per cent or S$0.22 to S$4.86. Meanwhile, ComfortDelGro ( C52 ) ended the day at S$1.66, up 3.8 per cent or S$0.06.

Thai Beverage ( Y92 ) registered the least gains among the 30 STI constituents, which all ended the day in the black. It rose 0.7 per cent or half a Singapore cent to end the day at 70 cents. It was, however, the most heavily traded on the index with over 66 million shares changing hands.