Singapore share prices closed at a new record high on Tuesday, boosted by Wall Street's stronger finish and hopes of better US economic data, dealers said. Investor confidence also rose on expectations Singapore may lower its corporate tax rate as it pushes ahead with a hike in consumption tax next year, they said.
The Straits Times Index closed 12.64 points or 0.46 percent higher at 2,759.88 points, eclipsing the previous record of 2,749.22 set on November 7. Volume totalled 1.47 billion shares worth 1.21 billion Singapore dollars (781 million US). There were 399 rising issues, 230 losers and 694 issues were even.
"The latest taxation news, while rather unexpected, should be neutral to bullish for the stock market with investors likely to welcome the potential corporate tax cut even as consumers will have to brace themselves for a higher cost of living from higher GST," Fraser Securities research head Najeeb Jarhom said in a note.
Singapore will raise its goods and services consumption tax from five to seven percent next year to fund social programmes for its lower income households, Prime Minister Lee Hsien Loong was quoted as saying.
Banks led the market's ascent with DBS Group Holdings up 0.20 at 20.30 and Oversea-Chinese Banking Corp rising also by 0.20 to 7.30. OCBC reported its three months to September net profit rose seven percent on the year, beating forecasts on the back of higher revenues. United Overseas Bank was down 0.10 to 17.70.
Phillip Securities senior dealing director Gabriel Yap said strong overall corporate earnings seen during the current reporting season has provided additional buying impetus.
Yap said interest rates are peaking in Europe and the United States, opening the possibility of a rate cut and resulting boost in the earnings potential of Singapore firms. "All these are sufficient reasons to ensure that the market will continue its uptrend," Yap said.
For the blue chips, Singapore Telecommunications climbed 0.01 to 2.84, Singapore Airlines added 0.10 to 15.60 but ST Engineering was steady at 3.06. Technology stocks were also higher as Creative Technology closed 0.10 higher at 10.60, STATS ChipPAC gained 0.005 at 0.975 and United Test Assembly Center advanced 0.005 to 0.695. Among property stocks, Keppel Land gained 0.10 to 6.05, CapitaLand was up 0.10 at 5.85 but City Developments held steady at 11.60.