by Donavan Lim
Singapore shares snap a two-day losing streak on hopes that plans are afoot by the central banks to try to rescue the global economy, though there was some caution ahead of the looming Greek elections.
With the G-20 meeting at Mexico this weekend, the eurozone crisis is certainly a salient part of the agenda.
Local traders were also lifted by hopes the Fed may launch another round of quantitative easing which saw Wall Street rally last night.
The benchmark Straits Times Index (STI) surged 37.19 points to end the day at 2,811.0, 11 points above the 2,800 level.
Commodity counters surged amidst the buoyant mood. Wilmar International rose 2.4 per cent and Noble Group edged up 1.8 per cent respectively. Olam International added 1.4 per cent to close at S$1.825.
Property and banks counters also led the charge. Oversea-Chinese Banking Corp surged 3 per cent to S$8.70 while DBS Group Holdings and United Overseas Bank gained 1.8 per cent and 1.6 per cent respectively.
Despite speculation of fresh measures to curb the property market, both CapitaLand and City Developments climbed 1.9 per cent.
“This comes despite new private homes sales tumbling 32 per cent last month compared to April’s figures. There is growing speculation the government may introduce more property-cooling measures and is targeting shoebox apartments next,” said Justin Harper of IG Markets in Singapore.
Elsewhere, Biosensors International edged up 1.3 per cent to close at S$1.135. OCBC had reiterated its Buy rating on the stock with a S$1.88 fair value estimate.
Across Asia, it was a mixed bag with the Hang Seng the clear winner, rising 2.3 per cent. The Nikkei 225 ended flat while the Shanghai Composite edged up 0.5 per cent.