Singapore shares closed 0.36 percent higher on Monday, buoyed by record high in U.S. markets amid renewed optimism over U.S. President Donald Trump’s tax reform plans, generally upbeat global economic data and Trump’s decision to agree to honor the one China policy.
.S. stock prices rose strongly on Feb. 10 on comments from Trump that he plans to announce the most ambitious tax reform plan since the Reagan era in the next few weeks which rekindled high hopes for big tax cuts.
Meanwhile, oil prices were steady on reports that major oil producers delivered more than 90 percent of the output cuts they pledged in a landmark deal that took effect in January.
DBS Group Research said “stocks have been underpinned by merges and acquisition activities, and growing optimism that the earnings recession trend in the Singapore market could finally come to a halt. We see further near-term upside capped at 3,150 points, while profit taking pullbacks should be supported around 3,050 points.”
Singapore’s benchmark Straits Times Index rose 11.24 points to 3,111.63 points. Trading volume was 3.26 billion shares worth 1.33 billion Singapore dollars. Advancers outnumbered decliners 305 to 203, while 571 stocks did not move.
ComfortDelgro Corporation Limited fell 0.4 percent to 2.50 Singapore dollars. It reported net profit rose 5 percent to 317 million Singapore dollars in financial year 2016 compared to previous financial year. But its full-year revenue dipped by 1.3 percent to 4.06 billion Singapore dollars from a year ago, largely as a result of an unfavorable foreign exchange translation impact. Its management indicated that the outlook for taxis operation business is challenging, and it will be more conservative in fleet renewal program.
Among top gainers, Jardine Matheson rose 1.3 percent to 63.93 U.S. dollars, while Great Eastern Holdings became one of the top losers by falling 0.4 percent to 21.02 Singapore dollars. (1 U.S. dollar equals to 1.41 Singapore dollars) Enditem