Singapore stocks ended higher yesterday following a coronavirus-fuelled stock market rally in which Wall Street booked gains, with investors buoyed by news of a newly approved Covid-19 vaccine, as well as the potential easing of United States-China trade tensions.
The Straits Times Index rose 20.42 points, or 0.8 per cent, to close at 2,559.03. Advancers outnumbered decliners 243 to 200, after 2.97 billion securities worth $1.4 billion changed hands.
Mr Stephen Innes, chief global market strategist at AxiCorp, said the news of a vaccine "opens the door wide to a rotating carousel of stocks" and "continues to underpin better sentiment" among investors.
He said: "While riding the high percentage of pandemic winners, the positive healthcare news flows will offer investors the luxury of buying into and waiting for the rest of the pack to play catch-up over the coming months and years."
QT Vascular, up 112.5 per cent to 1.7 cents, was the most heavily traded stock of the day, with 527.3 million shares changing hands. Investors reacted to news of the company's reverse takeover plans through the acquisition of Tengri Coal and Energy.
Healthcare stocks were among the biggest decliners of the day. Glove makers such as Top Glove shed 8.2 per cent to close at $8.38 and UG Healthcare lost 10.2 per cent to $2.30. Riverstone Holdings, too, ended the day 4.6 per cent down at $3.96. Medical apparel maker Medtecs International's share price slid 15.5 per cent to $1.42.
Among the constituent stocks, Singapore Airlines emerged the top gainer, adding 3.3 per cent to close at $3.80. The gradual reopening of borders fuelled investor sentiment, with some 13.2 million shares traded over the course of the day.
Airline gateway services provider Sats saw its share price gain 0.65 per cent to $3.10 after CGS-CIMB upgraded its call on the company to "hold". The brokerage said the worst could be over for the group, and that it could look forward to better freight rates on the back of stronger demand for perishable and medical supplies.
Banks ended the day in positive territory. DBS gained 1 per cent to $20.99, OCBC Bank added 1.5 per cent to $8.74, and United Overseas Bank closed 1.1 per cent higher at $20.06.
Elsewhere in Asia, the FTSE Bursa Malaysia KLCI slipped 0.87 per cent, Japan's Nikkei gained 1.35 per cent and Hong Kong's Hang Seng lost 0.26 per cent.
South Korean shares closed 1.58 per cent higher, their sharpest gain in nearly a month.
