Singapore stocks end higher on Tuesday; STI up 0.5%

SINGAPORE - Local shares advanced further on Tuesday, as factors like the banking crisis and inflation did little to dampen investor sentiment.

The benchmark Straits Times Index advanced 0.5 per cent to end the trading session at 3,255.54. Across the broader market, advancers outnumbered decliners 283 to 243, after 1.7 billion securities worth about $1.1 billion changed hands.

Elsewhere in Asia, markets also ended the day on an upbeat note. The Nikkei 225 rose 0.2 per cent, the Hang Seng was up 1.1 per cent and the Kospi also climbed 1.1 per cent. Meanwhile, the FTSE Bursa Malaysia KLCI added 0.9 per cent and the ASX 200 gained 1 per cent.

In a note on Tuesday, asset manager Amundi noted that markets currently appear to be driven chiefly by rising recession fears. Investors are also turning to safer asset classes.

“However, we see little change in terms of the fundamentals in comparison to previous weeks,” it said.

“Bank stocks are not the only ones being heavily impacted. Energy and basic resources stocks, as well as oil prices, have also taken a hit. On the opposite side, investors have moved towards gold, money markets and government bonds in a search for safety.”

Jardine Cycle & Carriage was the top advancer on Tuesday, gaining 1.1 per cent to $29.53.

The trio of lenders were also among the biggest gainers, as local traders remained unfazed by the global banking crisis.

UOB added 1 per cent to $29.76, DBS rose 0.5 per cent to $33.62, while OCBC Bank advanced 1.1 per cent to $12.55.

Venture Corporation was the biggest decliner for the day. The stock, which was trading on a cum-dividend basis, shed 0.6 per cent to $17.48.

Other heavily traded counters include Sembcorp Marine, Golden Agri-Resources and Singtel.