Local shares headed north yesterday to reverse Monday's lacklustre performance amid renewed hopes for a virus vaccine and optimism unleashed by the historic European Union stimulus deal.
Promising news from clinical trials in Britain allowed investors here and across the region to temporarily place fears of Covid-19 resurgence and extended lockdowns aside and push equities well into positive territory.
That good news was bolstered by news that European leaders had finally clinched a €750 billion (S$1.19 trillion) stimulus deal.
The Straits Times Index (STI) tracked overnight gains on Wall Street, which was boosted by a strong showing from technology giants, to add 0.5 per cent, or 13.15 points, to 2,629.45.
Gainers outnumbered losers 314 to 162 with 1.79 billion shares worth $1.31 billion changing hands.
OCBC Investment Research noted yesterday: "Tech shares pushed the Nasdaq to a record closing high, as promising trial results from potential Covid-19 vaccines helped investors look beyond spiralling new cases of the disease."
Developer giant City Developments emerged as the top performer among the STI constituents, gaining 2.2 per cent to $8.50.
The only three STI stocks that ended in the red were Hongkong Land, which fell 2 per cent, Dairy Farm International, 0.9 per cent lower, and Wilmar International, off 0.5 per cent.
Thai Beverage and Singtel were the two most heavily traded STI stocks.
Thai Beverage closed flat at 66 cents after around 46.8 million shares changed hands while Singtel ended the day up 0.4 per cent to $2.54, with more than 22.7 million shares traded.
The STI's performance was in line with regional benchmarks, which mostly ended higher on the back of improved sentiment stemming from the possible virus vaccine and the EU stimulus deal.
Hong Kong's Hang Seng shot up 2.31 per cent while Shanghai stocks added 0.2 per cent and the secondary Shenzhen bourse put on 0.72 per cent.
Other regional markets followed suit: The Nikkei in Tokyo advanced 0.73 per cent, the Kospi put on a robust 1.39 per cent while the ASX in Australia responded to the extension of local wage support measures and the EU bailout package to rocket 2.58 per cent and hit its highest close since March 9.
The Aussie dollar was also a standout performer and is on track for its best levels in a year against the United States greenback.
• With additional information from Reuters
