Local shares bounced back from Monday's fall after declining inflation here last month strengthened expectations of monetary easing.
The Straits Times Index (STI) rose 0.5 per cent or 15.91 points to close at 3,373.13, with gainers outpacing losers 266 to 194 on trade of 1.34 billion shares worth $917.93 million.
Consumer price index (CPI) figures out yesterday showed headline inflation eased last month, ending a four-month streak of edging upwards. Core inflation continued to ease, raising hopes of an easing monetary policy by the central bank in October.
The STI resumed the afternoon session yesterday at 3,366.95, up 0.3 per cent, and did not venture into negative territory for the rest of the day.
Industrial conglomerate Jardine Matheson Holdings (JMH) and electronic services provider Venture Corp were among the top performers. JMH added 0.22 per cent to US$64.31, while Venture put on 1.62 per cent to $15.67.
Venture said last night that asset manager BlackRock is now deemed a substantial shareholder after its related entity, PNC Financial Services Group, acquired about 525,400 shares last Friday, increasing its holding to 5.16 per cent.
Maybank Kim Eng analysts maintained their "buy" call on Venture on July 19, noting it is a beneficiary of the trade war, as around 85 per cent of its production is outside China.
"New customers won as a result of the trade war should contribute more meaningfully in the next one to two years as time is needed to launch new products," they wrote.
Real estate investment trusts (Reits) were a mixed bag, despite some posting positive results.
Capitaland Mall Trust, trading cum dividend, was up 1.54 per cent to $2.64, after raising second-quarter distribution per unit (DPU) by 3.9 per cent to 2.92 cents.
The trust's performance reflects "a mixed retail climate, where positive reversions and higher traffic imply Jewel Changi Airport's impact has not been as negative as expected", according to Citi Research. "But... competition for tenants remains high." The trust remains one of Citi's top picks among local Reits.
On the other hand, ESR Reit was unchanged at 53.5 cents despite also trading cum dividend. Its DPU was stable at 1.004 cents for its second quarter, up just 0.3 per cent from a year earlier.
Frasers Commercial Trust, which will pay a DPU of 2.4 cents for the third quarter that is flat on the year before, also closed unchanged at $1.64.
