SINGAPORE - A positive lead from Chinese equities following news that the government is pumping money to stem the stock market rout helped lift Singapore shares.
Concerns over Greece are easing after the Greek Parliament approved a slew of austerity measures, which was supported by the German Parliament.
The key benchmark Straits Times Index rallied 20.03 points to 3,373.48, with 1.86 billion shares worth S$1 billion traded.
"It's a relief rebound, thanks to the 3 trillion-plus yuan market stabilization fund," a remisier said.
China Securities Finance Corp (CSFC), a government agency, has between 2.5 trillion yuan and 3 trillion yuan on tap to support stocks. These funds will likely be used to offer liquidity support to brokerages and to buy stocks and mutual funds.
Traders are cautious ahead of the release of purchasing managers' index (PMI) factory data from China, Germany, France and the United States, all due on Friday.
"If the manufacturing data from the US is good, that may fuel speculation that the interest rate hike will likely be in September this year," the remisier said.
S-chip Foreland Fabritech Holdings skyrocketed 115 per cent or 1.5 cents to 2.8 cents, with 74.8 million shares traded; while Sino Construction jumped 28 per cent or 0.9 cent to 4.1 cents, with 181.8 million shares traded. New Silkroutes Group, another hotly traded penny counter, surged 100 per cent or 0.1 cent to 0.2 cent, with 58.8 million shares traded.
Meanwhile, speculation that Temasek Holdings may sell its 67 per cent stake in Neptune Orient Lines sent the shipping firm up 7.4 per cent or 6.5 cents to 94 cents, with 30.1 million shares traded.
OCBC Investment Research has a hold call on Neptune Orient Lines.