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Singapore stocks: STI resumes Monday trading at 3,363.45, up 1.3% on day

SINGAPORE stocks resumed trading in positive territory on Monday, with the Straits Times Index gaining 41.8 points or 1.3 per cent to 3,363.45 as at 1.01pm. 

This comes as the G-20 summit in Osaka fuelled optimism that trade tensions between the US and China will ease, sending Asian markets higher, and paving the way to a strong opening for Wall Street. 

Noted IG market strategist Pan Jingyi: "Asia markets will have the trade truce relief to induce buying interests… For the day ahead, China's Caixin manufacturing PMI and the US ISM manufacturing index will be two key pieces of data to track today, but look to the positive sentiment stemming from the weekend political events to keep markets in green."

On the Singapore bourse, advancers outnumbered decliners 235 to 91, after about 422.9 million securities worth S$550.1 million exchanged hands. 

Among the most heavily traded by volume, Indofood Agri gained 16.1 per cent, or 4.5 Singapore cents to 32.5 cents, with 43.6 million shares traded, while Thomson Medical added 3.1 per cent, or 0.2 cent to 6.6 cents, with 19.3 million shares traded. 

Also buttressing the index on Monday were the financials - DBS jumped 2.3 per cent, or S$0.60 to S$26.56, UOB gained 1.9 per cent, or S$0.50 to S$26.63, and OCBC rose 1.4 per cent, or S$0.16 to S$11.56. 

In a research note on Monday, DBS Equity Research highlighted Singapore banks as a trending sector, citing strong loan growth momentum, and the fact that Singapore is set to issue up to five new digital banking licenses. 

DBS Equity Research has also removed NetLink NBN Trust and instead added Keppel Corp to its equity picks under the blue chips category. Keppel Corp shares were trading at S$6.77 on Monday afternoon, up 1.7 per cent, or S$0.11, while units in Netlink NBN Trust were flat at S$0.89. 

Other active stocks included AEM which was up 4.9 per cent, or five cents to S$1.08, and CapitaLand which gained 2.6 per cent, or nine Singapore cents to S$3.62. Mainboard-listed property heavyweight CapitaLand on Sunday noted that its S$11 billion buyout of Ascendas-Singbridge has been completed, and that the enlarged group will operate as a unified entity from July 1. 

Elsewhere in Asia, equities also rallied, led by gains in China. The Shanghai Composite Index was up 1.9 per cent, while Hong Kong markets were closed for a public holiday. Japan's Nikkei 225 Index rose 1.8 per cent and Australia stocks ticked up 0.6 per cent.