Singapore shares gained 0.25 percent on Thursday after the government announced unprecedented measures to confront what is likely its worst recession ever. The blue chip Straits Times Index rose 4.25 points to 1,708.77 on volume of 863 million shares worth 972 million Singapore dollars (650 million US). Losers led gainers 208 to 159 with 903 issues unchanged.
"If you look at the stock market's performance on the day of the budget in the last two years, the market went up even before the measures were announced. This year is no exception, especially since the prime minister has said it will not be an ordinary budget," said one senior trader.
In the national budget, Singapore announced a stimulus package of more than 13 billion US dollars to confront the recession, and said it would make an unprecedented dip into the country's national reserves to fund part of the measures.
Finance Minister Tharman Shanmugaratnam also announced a reduction in corporate income tax from 18 to 17 percent. Bank shares were mixed, with United Overseas Bank up four cents to 11.88 and DBS rising a cent to 8.56, while Oversea-Chinese Banking Corp eased three cents to 5.06.
Property shares were also mixed. City Developments rose 11 cents to 5.61 and CapitaLand shed 11 cents to 2.50. Keppel Land closed two cents down at 1.48. Singapore Telecommunications added a cent to 2.56, and Singapore Airlines closed 10 cents lower at 11.00. Motor vehicle firm Jardine Cycle and Carriage dropped 34 cents to 10.70.