Local shares clawed back early losses yesterday to close slightly higher as traders welcomed Tuesday's findings that a cheap generic steroid dramatically reduces Covid-19 death rates.
While that sliver of good news was seemingly embraced, investors took the better-than-expected US retail sales data with a pinch of salt.
The Straits Times Index (STI) finished 2.77 points, or 0.1 per cent, higher at 2,669.62. Gainers outnumbered losers 209 to 169, with 1.43 billion shares worth $1.13 billion traded.
Top active Synagie rose 3.7 per cent to 16.8 cents on volume of 134.7 million, while the top gainer, Jardine Matheson, advanced 1.5 per cent to US$43.25.
Shinvest was the biggest loser, down 8.16 per cent to $2.70, after rising 24 cents the day before.
OUE rose 5.93 per cent to $1.25 after it said late on Tuesday that it was moving closer towards a sale of the US Bank Tower in Los Angeles.
Plant engineering firm PEC added 10.87 per cent to 51 cents after saying it would consolidate its stake in a Chinese subsidiary to lift its pro forma earnings per share.
Regional markets lacked direction. The Hang Seng rose 0.56 per cent, the KLSE climbed 0.57 per cent, the Shanghai Composite inched up 0.14 per cent, while the Nikkei fell 0.56 per cent.
Meanwhile, a record 78 per cent of fund managers polled globally say stocks are overvalued, the highest consensus since 1998, according to Bank of America's latest monthly survey.
These funds also reduced their cash holdings to 4.7 per cent from 5.7 per cent, the biggest monthly drop since August last year, led by institutional funds such as pension funds and insurance companies.
Hedge funds have hiked their net equity exposure to 52 per cent this month from 34 per cent a month ago - the highest since September 2018.
But June's optimism is "fragile" and "nowhere near dangerously bullish", the survey noted. Only 18 per cent of managers expect a V-shaped rebound, while 64 per cent expect a U-or W-shaped recovery.
Observers warned there could be a pullback after a massive surge in equity valuations from March troughs, fed by government and central bank support as well as the easing of lockdowns globally.
"There is so much uncertainty right now and it looks to us like the market has really gotten ahead of itself, and that concerns us," Ms Sandi Bragar at Aspiriant told Bloomberg TV.
"We are in the early stages of this and we are concerned the recovery is going to be long and slow."
