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Singapore shares gain 0.7% on Tuesday after Monday's sell-off
THE Singapore market - like most in Asia - posted a recovery during Tuesday's trading session following Monday's sell-off.
While the local market was not oversold on Monday, market watchers noted that investors were spooked by US President Donald Trump's tweets on Sunday, which had resulted in a knee-jerk reaction.
That said, markets in Asia were also lifted by news that Chinese Vice-Premier Liu He will go ahead with a visit to the US on Thursday for trade talks, after efforts to reach a deal to end the trade war were thrown into doubt by Mr Trump's vow to impose new tariffs.
In Singapore, the Straits Times Index (STI) reversed some of Monday's 3 per cent slide to close at 3,312.52, up 21.90 points or 0.67 per cent.
Trading clocked in at 1.05 billion securities, 83 per cent of the daily average over the first three months of 2019. Total turnover came to S$1.15 billion, 12 per cent more than the January-to-March daily average. Across the market, advancers outpaced decliners 279 to 142.
Compared to the broader market, the benchmark index fared better on the day, with 27 of the STI's 30 components ending in the black.
Among them, Genting Singapore was the blue-chip index's most traded, closing flat at S$0.95 with 33 million shares changing hands.
The casino operator is due to release its first-quarter earnings on May 9 after market close.
On the Singapore bourse, defensives such as utilities and telecommunications were among the big gainers on the day. China Everbright Water shares gained two Singapore cents or 4.8 per cent to end at 43.5 cents, while telco Singtel advanced six cents or 1.9 per cent to close at S$3.16.
IG market strategist Pan Jingyi told The Business Times that due to uncertainties revolving around the outcome of trade talks, "it would not be surprising if investor interest in such sectors continues this week".
Global Invacom Group (GInva) was the most traded on the day. The counter surged by as much as 16 per cent during early trading before the satellite communications equipment provider said that it had won US$6 million in contracts to supply direct-to-home satellite units. GInva closed at 8.5 Singapore cents, up 2.3 cents or 37.1 per cent, with 50 million shares traded.