Singapore shares close 1.4% up, Stocks


Mon, Jul 06, 2020 – 6:29 PM

SINGAPORE shares posted their fifth straight win to close 36.7 points or 1.4 per cent higher to 2,689.61 on Monday, buoyed by significant gains across major bourses in the region.

The rise was led by a renewed feel-good factor on the back of upbeat data signalling a global turnaround – despite the still-cloudy economic picture and as Covid-19 infections hit record high across the world.

Analysts warn that the rally is driven by liquidity rather than fundamentals and risk aversion could shatter the bubble if fundamentals fail to catch up or if generous fiscal and monetary interventions wane.

FXTM chief market strategist Hussein Sayed said: “Investors trying to find a negative correlation between stock-market performance and Covid-19 infections are having a difficult time. There doesn’t seem to be one at the moment and that’s evident in Monday’s robust rally.”

He added: “The more asset prices disconnect from their core fundamentals, the more likely we will see a sharp correction occurring in the future”.

Key gauges rose in Japan, Taiwan, South Korea and Malaysia, with Hong Kong and China posting gains of nearly 4 and 6 per cent respectively. Australia bucked the trend and declined 0.7 per cent.

On the Singapore bourse, turnover came in at 1.86 billion shares worth S$1.17 billion. All but one counter – it was unchanged – posted gains. The three big banks DBS, OCBC and UOB led the pack and added 16.7 index points collectively to the STI.

Hospitality real estate investment trusts (Reits) chalked up sweet gains fuelled by positive news that Singapore hotels will re-open for staycations. CDL Hospitality Trusts (CDLHT) rose four Singapore cents or 3.7 per cent to S$1.11.

DBS Research said that CDLHT, the portfolio of which includes six hotels in Singapore (Orchard Hotel and Grand Copthorne Waterfront Hotel among them), is one of the “prime” beneficiaries, given its significant exposure in the city state.

Shares of mainboard-listed Hi-P International, a mainboard-listed electronics contract manufacturer, drew significant activity, jumping 17 Singapore cents or nearly 16 per cent to S$1.24; nearly 16 million shares changed hands. The unusual price movements prompted a trading-activity query from the Singapore Exchange (SGX) around mid-day.





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