Singapore shares closed 0.25 percent higher on Monday, after Iran and six world powers sealed a deal curbing its nuclear program, which should raise risk appetites and benefit share markets.
The agreement, reached late Sunday, gives Iran some relief from crippling sanctions. While Iran will not be allowed to increase its oil sales for six months, any easing of Middle East tensions tends to lead to lower crude prices. Brent crude oil suffered its biggest daily drop in a month. U.S. oil also lost 88 cents to 93. 96 U.S. dollars a barrel.
DBS Group Research said "we continue to see the prospect of the index higher towards 3,290 points despite Straits Times Index's 29- point decline last week," adding that the short-term support levels for the index are 3,150 points and 3,100 points.
CIMB Research said "(Singapore index) prices should climb and take out 3,230 points on the way up to test 3,300 points and 3,340 points."
The benchmark Straits Times Index rose 7.8 points to close at 3, 180.65 points. Trading volume was 1.26 billion shares worth 699 million Singapore dollars. Decliners outnumbered advancers 215 to 173, while 569 stocks closed unchanged.
Singapore Airlines gained 2.9 percent to 10.53 Singapore dollars. It said it received approval from India's Foreign Investment Promotion Board dated Nov. 22 to establish a joint- venture airline in India with Tata Sons.
Keppel Land has completed the divestment of its 51 percent stake in Jakarta Garden City to PT Modernland Realty Tbk. Based on a sale consideration of about 249 million Singapore dollars, this translates into net proceeds of about 237 million Singapore dollars.
Yongnam Holdings closed flat at 24 Singapore cents. It secured a subcontract worth 168 million Singapore dollars for Marina One mixed-use landmark development in Singapore.
Among the top gainers, Jardine Cycle and Carriage rose 1.4 percent to 34.99 Singapore dollars, while Great Eastern Holdings became one of the top losers by falling 1.2 percent to 17.80 Singapore dollars. (1 U.S. dollar equals 1.25 Singapore dollars)