Singapore shares surge 1.9 per cent on extended stimulus rumours

United States stocks on Monday, Sept 16, 2013, followed global markets higher, rallying on Mr Larry Summers' (above) withdrawal as a candidate to lead the US Federal Reserve. -- FILE PHOTO: REUTERS
United States stocks on Monday, Sept 16, 2013, followed global markets higher, rallying on Mr Larry Summers' (above) withdrawal as a candidate to lead the US Federal Reserve. -- FILE PHOTO: REUTERS

Singapore shares surged 59.18 points, or 1.9 per cent, to end the day at 3,179.48 amid a swell of optimism across the globe, prompted by the withdrawal of Lawrence Summers from the running to be the next United States Federal Reserve chairman.

Mr Summers, a former treasury secretary, was initially tipped to be the frontrunner in the race.

But his withdrawal has triggered speculation that main rival Janet Yellen would now be appointed to the top spot at the Fed, and investors believe she may favor a slower reduction in US stimulus.

Some 3.58 billion shares worth $1.64 billion changed hands in Singapore.

There were 290 gainers, outnumbering 173 losers.

Hankore Environment was the top active, rising 0.4 cent to 6 cents after Maybank Kim Eng Research issued a report saying it was impressed by the company's restructuring efforts.