Singapore stocks end higher on Tuesday, STI up 0.7%

LOCAL shares advanced on Tuesday as investor optimism was boosted by news that private-sector economists further raised their full-year outlook for Singapore's gross domestic product to a growth of 6.5 per cent, up from 5.8 per cent in the March edition of the survey.

The benchmark Straits Times Index rose 0.7 per cent or 21.73 points to finish on Tuesday at 3,174.87. Across the broader market, advancers inched past decliners 274 to 239, with 2.47 billion securities worth S$1.31 billion changing hands.

Olivier d'Assier, Qontigo's head of applied research for the Asia-Pacific, noted that market sentiment across the globe continues to be closely linked to quantitative easing programmes by the central banks of various countries.

"After weeks spent in the neutral zone, worrying that higher interest rates could chew ravenously at the core of the US and global economic recoveries, investors are walking over the line of ambivalence accepting the Fed's pitch that growth and inflation can co-exist, if you continue to have easy money," he said.

The trio of local lenders were among the biggest gainers on Tuesday, reversing from Monday, when they were among the biggest decliners on the Singapore bourse. DBS came out tops, adding 1.4 per cent or S$0.41 to close at S$30.07. UOB gained 0.5 per cent or S$0.13 to S$26.11; OCBC rose 0.8 per cent or S$0.10 to S$12.33.

Singapore Exchange was another advancer, gaining 2.5 per cent or S$0.27 to S$10.98.

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On the other end of the spectrum, Jardine Matheson Holdings was the biggest loser. The counter closed at US$62.58 on Tuesday, down 0.3 per cent or US$0.19.

Aviation-related counters were also among the biggest decliners. Singapore Airlines fell 1 per cent or S$0.05 to S$5.08; Sats shed 1.2 per cent or S$0.05 to S$4.05.

Gold miner and explorer Shen Yao Holdings was the most heavily traded stock on Tuesday. The stock ended the day flat at 0.7 Singapore cent, with 301.3 million shares having changed hands.

Electronic parts distributor Serial System was again among the actively traded stocks. Its share price rose more than 40 per cent on Monday on heavy trading, following an announcement last Friday that the company's founder and chief executive Derek Goh had acquired shares in the company. The counter ended Tuesday at 15.3 Singapore cents, up 5.5 per cent or 0.8 cent.

Other heavily traded counters included F J Benjamin Holdings, Golden Agri-Resources and Hanwell Holdings.

Across the region, markets were a mixed bag of results at Tuesday's close. The Nikkei 225 rose 1 per cent; the Kospi added 0.2 per cent, and the Jakarta Composite Index gained 0.1 per cent. The KLCI fell 0.1 per cent, while the Hang Seng Index slipped 0.7 per cent.