SINGAPORE (THE BUSINESS TIMES) - Local investors shrugged off weak manufacturing data from across the region yesterday and gave the market a welcome jolt of optimism.
The better mood sent the Straits Times Index (STI) up 32.79 points, or 1.1 per cent, to 3,087.84, with gainers outnumbering decliners 302 to 193 on trade of 1.59 billion shares worth $1.02 billion.
Some of the improved mood came after private sector analysts raised their forecast for Singapore's 2021 economic growth for the third time this year.
They expect gross domestic product to expand 6.6 per cent this year, slightly higher than the 6.5 per cent forecast in June.
Oanda senior market analyst Jeffrey Halley noted: "Being the first day of the month, some mechanical institutional money could be deploying as monthly savers restock fund managers' coffers.
"Or it could be that the soft PMI (Purchasing Managers' Index) data across much of Asia has investors pricing in ultra-low rates for longer."
STI constituent Jardine Matheson Holdings rebounded from losses on Tuesday to close 4.4 per cent higher at US$56.70.
Property developer China Yuanbang was the worst performer, dropping 27.5 per cent to close at 33 cents.
Among STI constituents, Sats was the only decliner, slipping 0.5 per cent to $4.05.
The trio of local banks closed higher. DBS was up 0.9 per cent to $30.23, UOB gained 0.3 per cent to $25.65, and OCBC Bank rose 1.6 per cent to $11.61.
Elsewhere in Asia, the markets were also mostly up despite a lacklustre session on Wall Street, with the Dow and S&P 500 both losing 0.1 per cent overnight.
The Hang Seng Index in Hong Kong added 0.6 per cent, South Korea's Kospi closed up 0.2 per cent, and Japan's Nikkei 225 rose 1.3 per cent, but the Kuala Lumpur Composite Index shed 0.9 per cent.