Singapore shares closed 0.57 percent higher Thursday, buoyed by the extended rebound in US stocks, dealers said. The blue chip Straits Times Index (STI) rose 8.92 points to 1,584.86 on volume of 878 million shares worth 872 million Singapore dollars (575 million US). Losers led gainers 211 to 183, with 835 issues unchanged. Banking stocks led the advance.
"I suppose the banks resilience has to do with the Feds plan to buy long-term Treasuries, which supported US financial stocks overnight," said a dealer at a foreign brokerage, referring to the US Federal Reserve. However, Phillip Securities technical analyst Phua Ming-Weii cautioned that the outlook for the global economy remained weak.
"There might be some more upside (but) the recent rally is still only a blip," Phua said. Banking shares advanced, with DBS gaining 31 cents to 7.71, Oversea-Chinese Banking Corp up seven cents to 4.53 and United Overseas Bank closing 19 cents higher at 9.28.
Among property shares, CapitaLand eased five cents to 2.08, City Developments edged up five cents to 5.01 and Keppel Land remained unchanged at 1.24. Blue chip stocks gained. Singapore Airlines climbed 10 cents to 9.49 and Singapore Telecommunications rose a cent to 2.45. Investment holding company Sembcorp Industries shed 17 cents to 2.07 and oil rig-builder Keppel Corp fell 11 cents to 4.37.