Singapore stocks extend gains on Thursday, STI up 0.6%

LOCAL shares rose on Thursday after a break on Wednesday due to Vesak Day, amid news that the decline in receipts for Singapore's services industry had eased further to a dip of 1.5 per cent year on year for the first quarter. This is an improvement from the revised 7.6 per cent decline recorded in Q4.

The benchmark Straits Times Index rose 0.6 per cent or 18.73 points to finish the day at 3,164.82. Advancers outnumbered decliners 297 to 195, with 2.61 billion securities worth some S$3.39 billion changing hands.

Across the region, key markets were a mixed bag. The Nikkei 225 fell 0.3 per cent; the Hang Seng Index shed 0.2 per cent, while the Kospi lost 0.1 per cent. On the other end of the spectrum, the KLCI added 1 per cent, and the Jakarta Composite Index, 0.5 per cent.

Ramkumar Rasaratnam, head of sustainable equity at Rosenberg Equities, noted that while the global markets are optimistic on the back of the emergence of Covid-19 vaccines, the potential for new strains and any hindrance to economies fully reopening is "likely to temper investor sentiment".

He said: "As we move through 2021 and into 2022, the role of stimulus should shift from recession-mitigation to growth-generation across a broad range of economic segments.

"We expect the recent support for low-quality investments to be short-lived once the initial vaccine euphoria fades."

On the local bourse, Jardine Matheson Holdings was the biggest gainer on Thursday. The counter rose 0.7 per cent or US$0.43 to US$64.49.

Tech names were also among the advancers. Venture Corporation added 2 per cent or S$0.37 to S$19.07; iFast gained 4.7 per cent or S$0.36 to S$8.03, and Nanofilm Technologies rose 4.6 per cent or S$0.24 to close at S$5.41.

Southern Alliance Mining was again the top loser of the day, booking the biggest losses on the bourse on Tuesday. The counter closed at S$0.90, down 8.6 per cent or 8.5 cents.

Other decliners for the day included Great Eastern, which fell 0.3 per cent or S$0.06 to S$22.70, and Spindex Industries, which slipped 5 per cent or S$0.06 to S$1.15.

Sembcorp Marine was the most heavily traded stock on Thursday. The counter rose 6.2 per cent or 1.2 Singapore cents to close at 20.5 cents, with some 174.5 million shares changing hands over the course of the day.

Other stocks that saw heavy trading included SinoCloud, QT Vascular and Singtel.