Bulls And Bears

STI rises 1.4% on Wall Street gains

Investors shrug off concerns over Brexit turmoil, US-China trade tensions

Overnight gains on Wall Street helped investors shrug off concerns over the Brexit turmoil in Britain and trade tensions between China and the United States.

Much of the optimism in the US centres on an expected positive season for second-quarter corporate earnings.

That helped investors here push the Straits Times Index up 46.01 points, or 1.42 per cent, to 3,274.83 on trade of 2.41 billion shares worth $1.45 billion. Gainers thumped losers 271 to 131.

Ezion Holdings was the most active, adding 0.8 cent, or 9.9 per cent, to 8.9 cents with 87.4 million shares changing hands.

A couple of thinly traded stocks also saw high volume numbers.

China-based copper foil producer Kingboard Copper traded at a decade high yesterday, gaining 1.5 cents to 47.5 cents on trade of 43.9 million shares.

Asiatic advanced 0.1 cent, or 9.1 per cent, to 1.2 cents with 51.4 million shares traded.

Top Glove, which fell on Monday, closed flat at $3.40.

The rubber glove maker revealed on Monday that there was an overvaluation of RM714.9 million (S$241 million) in Aspion, a company it acquired from Adventa Capital in April, that was discovered shortly after Top Glove took over.

Property and bank stocks continued their recovery following the cooling measures announced last week.

Oxley Holdings added 2.5 cents, or 7.6 per cent, to 35.5 cents.

It said on Monday that it had sold $1 billion worth of residential units from five project launches in Singapore this year with profit margins ranging from 15 per cent to 25 per cent. It released the figures in response to queries from investors on the impact of the cooling measures.

CapitaLand finished five cents higher at $3.07, while APAC Realty advanced two cents to 63 cents.

The three banks all closed higher as well, likely on investors being more relaxed about the possible impact of the cooling measures.

DBS added 59 cents to $26.30, OCBC Bank put on 25 cents to $11.56, while United Overseas Bank was 48 cents up at $26.99.

It was a mixed day for telcos, with StarHub continuing to make gains, closing one cent higher at $1.75.

Singtel was flat at $3.28, while M1 fell three cents to $1.62.

In regional markets, the Nikkei 225, Shanghai Composite, Kospi and Kuala Lumpur Composite all closed higher yesterday, but Australian shares were dragged down by lenders.

A version of this article appeared in the print edition of The Straits Times on July 11, 2018, with the headline 'STI rises 1.4% on Wall Street gains'. Print Edition | Subscribe