Singapore shares further recouped post-Brexit losses to end in the black yesterday while most key Asian markets were lifted by bargain hunters.
The benchmark Straits Times Index (STI) put on 26.68 points or 0.98 per cent to 2,756.53 on trade of $1.05 billion in a lively session. This means the STI has taken back half of the 60 points it lost in the Brexit shock.
Elsewhere in the region, Shanghai rose 0.58 per cent, Tokyo put on 0.09 per cent and Kuala Lumpur added 0.28 per cent. Hong Kong dropped 0.27 per cent.
In Britain, London's FTSE 100 shot up over 2 per cent in early trading yesterday.
"The indiscriminate selling after the Brexit vote may create opportunities in assets with positive fundamentals and relative value," BlackRock global chief investment strategist Richard Turnill said yesterday.
But he added that selectivity and caution remained key, recommending dividend-growth stocks and investment-grade bonds as safe choices in this uncertain time.
Investors here clearly shared the sentiment as they piled into telco stocks and trusts for their typically stable yield.
StarHub was the top gainer among the 25 STI component stocks that rose yesterday, ahead 16 cents or 4.47 per cent at $3.74. Singtel was up 10 cents or 2.57 per cent at $3.99 with 43.3 million shares traded - one of the top actives. Outside the STI, M1 rose seven cents or 2.78 per cent to $2.59.
Ascendas Real Estate Investment Trust put on six cents or 2.53 per cent to $2.43, and CapitaMall Trust added five cents or 2.43 per cent to $2.11. Singapore Press Holdings was also up, gaining eight cents or 2.16 per cent to $3.78.
Singapore Exchange was also among the gainers, closing up six cents or 0.82 per cent at $7.41.
SGX equities and fixed income head Chew Sutat said on Monday that the firm saw "green shoots" in the second half despite the uncertain market conditions as the bourse's efforts to build a comprehensive capital platform and reach out to retail investors continued to pay off.
Only four counters dropped yesterday, led by Thai Beverage, which closed down 1.5 cents or 1.66 per cent at 89 cents. ComfortDelGro pared one cent or 0.37 per cent to $2.67. Outside the STI, punters' favourite Spackman Entertainment rose 0.7 cent or 7.07 per cent to 10.6 cents, with 34.2 million shares traded.
In the consumer sector, Sheng Siong Group added one cent or 1.16 per cent to 87.5 cents. The supermarket operator was highlighted by OCBC analyst Jodie Foo as a counter to buy due to its defensive nature amid the uncertain Brexit environment.
"With its current earnings solely exposed to Singapore, there should not be material immediate implications from Brexit," Ms Foo said.