Local shares made mild gains yesterday on hopes that United States lawmakers will reach an agreement on the next round of fiscal stimulus.
More funds poured into treasuries and gold the night before, with the yellow metal soaring past US$2,000 per ounce for the first time in history.
The Straits Times Index (STI) closed in the green, rising 16.99 points, or 0.68 per cent, to 2,532.69. About 1.64 billion securities worth $1.41 billion changed hands yesterday. Gainers outnumbered losers 284 to 169.
Top gainer Venture Corp advanced 66 cents, or 3.64 per cent, to $18.80, after DBS Group Research raised its target price from $15.90 to $20.70 yesterday. The electronics manufacturing services firm reports earnings tomorrow evening.
Yanlord Land surged eight cents, or 6.56 per cent, to $1.30 after it said it had inked an investment agreement with a GIC affiliate to co-invest in residential projects in China.
Bank earnings will be in the spotlight for the rest of the week. DBS Group and United Overseas Bank will both report earnings before the market opens today. OCBC Bank will report earnings tomorrow morning.
Investors were disappointed last week when Singapore's financial regulator called on local banks to cap FY20 dividends at 60 per cent of the amount paid in the previous financial year, and offer scrip dividends in lieu of cash.
But "mandating prudence on capital usage is largely in line with regulators' cautious stance globally, reflecting the extent of the pandemic's impact", wrote Bank of Singapore analysts in a recent note. "In this respect, Singapore banks are still relatively less constrained than European banks, for example, which have been restricted on all dividends and share buybacks this year."
Regional markets were mixed. The KLSE fell 0.5 per cent, the Shanghai Composite rose 0.17 per cent, the Nikkei fell 0.26 per cent, and Australia's benchmark index slipped 0.6 per cent.
Hong Kong's Hang Seng Index closed up 0.62 per cent, tracking gains in Asia and mainland China, on hopes for more economic stimulus from global policymakers and a gradual recovery in the Chinese economy.
South Korea's Kospi hit its highest level since October 2018, closing up 1.4 per cent.
• Additional information from Reuters
