STI inches up 0.53% on market optimism

Optimism around the improving virus crisis boosted local shares for a second consecutive day.

The Straits Times Index (STI) put on 13.55 points, or 0.53 per cent, to 2,562.95 with gainers trumping losers 217 to 172 on trade of 1.34 billion shares worth $1.35 billion.

A Monetary Authority of Singapore report yesterday also offered hope that the Government's Jobs Support Scheme will help cushion the labour market, although unemployment is still expected to rise.

In addition, S&P Global Ratings affirmed a stable credit outlook for Singapore, saying the external and fiscal positions are likely to remain intact despite the challenging domestic and global environment.

ComfortDelGro was the best performer among the index constituents, rising 6.16 per cent to $1.55 after OCBC Investment Research kept its "buy" call with a long-term view on the counter.

It said the transport operator has low gearing and is able to undertake more acquisitions, despite Covid-19's short-term impact on its taxi and rail business.

Keppel Corp added 3.79 per cent to $6.03, after its subsidiary Keppel Telecommunications & Transportation agreed to sell a 2.33 per cent stake in Keppel DC Reit for $92 million in an "opportune move" to redeploy funds in new opportunities.

The STI's biggest laggard was Jardine Cycle & Carriage, which on Monday flagged "challenging trading conditions" in the first quarter. It lost 5.85 per cent to $19.80.

Yangzijiang Shipbuilding was the most active, losing 3 per cent to 97 cents after its announcement that it was providing a credit facility of up to 1.5 billion yuan (S$300 million) to an entity that its chairman and his son are invested in - a move that will likely unsettle investors.

Elsewhere, Asian markets mostly finished in positive territory. Malaysia gained 0.15 per cent, Seoul's Kospi added 0.59 per cent while the Hang Seng rose 1.22 per cent, making it the standout performer for the day.

But Japan's Nikkei 225 fell 0.06 per cent. "Its index didn't go up because we are expecting holidays," Okasan Online Securities said in a commentary. The Golden Week holidays will begin in Japan with a day off today, and continue next week.

Major companies are beginning to announce full-year earnings.

Despite tentative reopenings after shutdowns in some countries, crude continues to be mauled by concerns over collapsed demand and storage facilities filling up. Oil fell below US$11 a barrel yesterday.