Local equities inched up yesterday as investors clung to hopes that a fiscal stimulus package will land ahead of next month's United States presidential election.
The White House has said it will agree to a US$1.9 trillion (S$2.57 trillion) deal but that is still US$300 billion short of what Democrats have put forward.
AxiCorp chief market strategist Stephen Innes said investors are now "suffering a severe case of stimulus talk exhaustion", with more people now opting for the sidelines.
But he expects markets to trend in a more volatile manner in the lead-up to the highly anticipated "major macro event of the year".
"Stock market investors have enough cash to put to work, and things will bounce back in a big way despite this week's teenage crush with a pre-election stimulus hurting the view," Mr Innes added.
The air of optimism nudged the Straits Times Index up 0.1 per cent, or 2.8 points, to 2,528.41, with losers outnumbering gainers 211 to 202 on trade of 1.34 billion shares worth $1.01 billion.
Venture Corp was the biggest loser of the day after hitting a 52-week high of $21.21 on Wednesday morning. RHB had upgraded the stock to a "buy", citing an improved outlook.
The counter ended the day at $20.55, down 2 per cent.
City Developments extended its slide yesterday, shedding 1.1 per cent to $7, with 10.5 million shares changing hands. Investors continued to take flight following the resignation of non-executive and non-independent director Kwek Leng Peck; some 10.5 million shares changed hands.
Jardine Matheson Holdings and Jardine Strategic Holdings were again among the winners, both rising about 1.3 per cent.
Among the constituent stocks, Wilmar International and Sembcorp Industries came out tops, each gaining 1.4 per cent over the course of the day. Wilmar closed at $4.30 and Sembcorp at $1.43.
The trio of lenders ended the day in the black. DBS Bank gained 0.9 per cent to $21.44, United Overseas Bank added 0.3 per cent to $19.98 and OCBC Bank closed at $8.76, up 0.1 per cent.
Stocks on Wall Street retreated amid election and stimulus uncertainties. The Dow Jones Industrial Average fell 0.4 per cent, the S&P 500 lost 0.2 per cent and the Nasdaq shed 0.3 per cent.
Asian markets were mixed. Malaysian stocks rose 0.4 per cent and the Hang Seng gained 0.1 per cent, but the Nikkei fell 0.7 per cent.
Australian shares recovered strongly from a sharp 1.5 per cent decline early in the session to finish down just 0.3 per cent.
• Additional information from Agence France-Presse
