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Singapore shares rise 0.4% on Tuesday amid cautious optimism
SINGAPORE stocks on Tuesday reversed the previous day's losses as US economic data topped expectations and tensions eased on the trade front.
The Straits Times Index gained 0.39 per cent or 12.22 points to close at 3,155.46, in line with most Asian markets. Gainers outnumbered losers 225 to 146, or about two up for every one down, although activity remained subdued.
Total turnover was S$909.82 million, with a total of 807.03 million shares traded.
The cautious optimism comes as Chinese importers bought 600,000 tonnes of US soybeans following last week's trade negotiations between the two economic powerhouses.
The US also confirmed Oct 7 as the date for the next round of Sino-US trade talks, with Chinese Vice-Premier Liu He due to fly to Washington.
But traders remain on edge as they wait for more developments in the trade stand-off.
"Risk markets are not exactly jumping up and down with joy on Beijing's soybean concession knowing President Trump's latest 'not interested in an interim deal' trade stance," said Stephen Innes, Asia-Pacific market strategist at AxiTrader.
"Mind you, that too could change as quickly as it happened," he added.
Phillip Futures investment analyst Samuel Siew also advised investors to be wary of trading on headlines.
Pointing to Tuesday's rebound, he said: "Trade headlines have given markets nothing but volatility of late, with the statements tending to have drastic turns."
On the local bourse, some of the biggest advances on Tuesday came from Jardine Cycle & Carriage (Jardine C&C), Singapore Exchange (SGX) and Shinvest Holding.
Jardine C&C closed at S$30.95, up 1.71 per cent or S$0.52. The conglomerate announced in the evening that it would be launching a public tender offer to acquire up to 10.11 per cent of shares in Vietnam-based Refrigeration Electrical Engineering Corporation.
Meanwhile, SGX, trading cum dividend, closed up 2.17 per cent or S$0.18 at S$8.47. The exchange is due to report its Q1 FY2020 results next month.
Precision manufacturing firm Shinvest finished the day at S$1.96, up 8.89 per cent or S$0.16 after an earlier spike in its share price. There were no announcements from the company.
Other gains came from Metech International and Keppel Corporation. Catalist-listed Metech rose 20.42 per cent or S$0.029 to S$0.171, following news that its wholly-owned Chinese unit, Nolash Tech, has inked agreements with five companies to exclusively provide technical, operation and procurement services.
On Tuesday morning, Keppel Corp said its property arm is looking to buy a 30 per cent stake in Win Up Global which will ultimately own Westmin Plaza, an office and retail development in Guangzhou. News of the deal boosted its share price by 1.66 per cent or S$0.10 to S$6.14.