By Donavan Lim
In tandem with other Asian bourses, Singapore shares continued its rally. Markets across Asia were boosted by speculations that more will be done by central banks in China, US and Europe to boost their economies.
“Looking at the big picture, the optimistic belief is that central banks will ease monetary policy either through cuts or extend its asset purchase programme in the short-term. This is outweighing the doom and gloom of a global slowdown, led by faltering manufacturing activity in major economies and record levels of unemployment. While great news for equities in the short-term, these quick fixes may simply be delaying the problem rather than tackle it head on,” said Justin Harper of IG Markets in Singapore.
The 30-share Straits Times Index (STI) closed at 2,945.33 Tuesday, just 54.77 points shy of the 3,000 psychological resistance level with ease.
Property companies with exposure to China were boosted by data suggesting that the country’s property market appears to be turning around. CapitaLand surged 3.3 per cent higher at S$2.810 and CapitaMalls Asia closed 1.6 per cent higher at S$1.605.
Oil-palm play, Golden Agri-Resources surged to a high of S$0.720 while Wilmar International closed higher at S$3.710.
Olam International fell S$0.005 to S$1.895.
Regionally, the Hang Seng Index surged 294.07 points to 19,735.53. Japanese stocks also headed higher. The Nikkei 225 index closed at 9,066.59, gaining 63.11 points.
Meanwhile, market participants will look to the European Central Bank rate decision Thursday as well as US employment data coming out later this week to make their trading decisions.