A rally in tech stocks in New York spurred local investors to charge back into the market yesterday and send local shares higher.
The burst of optimism drove the Straits Times Index (STI) up 30.79 points, or 1.24 per cent, to 2,515.70, emphatically ending a three-day losing streak. Gainers outnumbered losers 250 to 184 on trade of 1.42 billion shares worth $1.43 billion.
The main catalyst came from a rally on Wall Street overnight as investors piled into technology shares to send the Nasdaq to a record closing high.
Sentiment was also boosted by hopes that moves to nail down a coronavirus relief Bill would yield fruit and data showing that United States manufacturing activity last month grew at the fastest pace in more than a year.
Local investors took the hint and targeted the tech sector.
Semiconductor capital equipment maker AEM Holdings surged 14.48 per cent to $4.19 after it reported that earnings more than doubled in the first half, reaching 65 per cent of full-year consensus estimates. AEM also raised its interim dividend and its sales guidance for the rest of the year.
Precision plastic components maker Sunningdale Tech finished at $1.14, up 9.62 per cent. Sunright, which provides semiconductor test and burn-in services, rose 9.23 per cent to 35.5 cents.
UMS, a primary supplier in Asia for semiconductor equipment maker Applied Materials, added 5 per cent to $1.05.
CEI Contract Manufacturing advanced 6.43 per cent to 91 cents while Grand Venture Technology, which has exposure to the semiconductor and life science industries, put on 4 per cent to 26 cents.
The STI's gainer was Jardine Matheson, which closed at US$39.32, up 3.58 per cent.
There were gains across the region as well. The Hang Seng Index rose by 2 per cent, Malaysian shares climbed 0.21 per cent and the Shanghai Composite put on 0.11 per cent, while the Nikkei advanced 1.7 per cent.
The stringent lockdown in Victoria does not seem to have deterred Australian investors, who sent the local market up 1.9 per cent to a two-week high.
Tech shares were the main driver, although the nation's Big Four banks helped out as well.
Swissquote Bank senior analyst Ipek Ozkardeskaya noted: "Call it a market rally, or stock market inflation, global equity markets are poised for more gains on hope that more stimulus will support economies, or at least stock prices."
