Bulls And Bears
Singapore shares lifted by slew of positive news
Anticipation over Republic's phase three boosts optimism; ComfortDelGro the top gainer among STI constituents; Asian markets mixed - S. Korea, HK fall but Tokyo closes higher
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Rae Wee
Singapore shares climbed yesterday as investor optimism was boosted by positive news both locally and globally.
Amid the deadline extension for post-Brexit trade talks, continued developments on the vaccine front and anticipation of the authorities announcing, after the market close, that Singapore will further ease some safe distancing measures, the benchmark Straits Times Index (STI) gained 36.44 points, or 1.29 per cent, to close at 2,858.14.
At 5pm yesterday, Prime Minister Lee Hsien Loong said phase three of Singapore's reopening will start on Dec 28.
The limit for social gatherings will be raised from five to eight people. Also, Singapore has approved the Pfizer-BioNTech vaccine, with the first shipment estimated to arrive by the end of this month.
Among STI constituents, ComfortDelGro was the top gainer, rising 3.64 per cent to close at $1.71.
Coming in a close second was CapitaLand Integrated Commercial Trust, up 3.35 per cent to $2.16.
"Amid expectations of improvement in private consumption, we favour initiating positions in cyclical growth stories with greater exposure to domestic demand recovery, while remaining cautious on global cyclicals that are vaccine-dependent," said RHB analyst Shekhar Jaiswal in a note.
He added that the STI is expected to "reverse its under-performance relative to Asian peers in 2021".
Gainers outnumbered losers 265 to 180, with 2.17 billion securities worth $1.31 billion changing hands.
Asian markets ended the day mixed.
South Korean and Hong Kong shares fell amid a spike in Covid-19 cases, while Tokyo stocks closed higher.
