Singapore shares closed 0.27 percent higher on Monday, after Cyprus's president and the European Union have agreed the outlines of a rescue deal to avert financial meltdown on the Mediterranean island.
The outlines include the creation of a "good bank" and a "bad bank" and the shutting down of Cyprus's second largest lender. The plan will now be presented to Euro-zone finance ministers for discussion.
Last week, the European Union gave Cyprus until this Monday to raise the 5.8 billion Euros it needs to secure an international lifeline. Without the aid, the European Central Bank will cut funds to Cypriot banks and the country may be forced to exit the Euro.
SIAS Research said we could see the index consolidating around current levels with the immediate base still pegged at the 3,230 points support while support remains pegged at the 3,270 points and 3,300 points levels.
CIMB Research said "the market appears to be caught between two minds with prices continue to trade between 3,234 points and 3,319 points," adding that "a push above 3,317 points would mean that there is one more high in the making, likely to test 3,343 points and 3,400 points."
Singapore's benchmark Straits Times Index rose 8.91 points to 3, 267.48 points. Trading volume was 5.21 billion shares worth 1.29 billion Singapore dollars. Advancers outnumbered decliners 288 to 153, while 508 stocks did not move.
OSIM International jumped 2.4 percent to 1.95 Singapore dollars. DBS Group Research said that the massage chair maker is a beneficiary of the rising middle class population in China, with 56 percent of revenues originating from North Asia.
IEV Holdings Limited closed flat at 47 Singapore cents. It has made its foray into the renewable energy business with a biomass production project in Vietnam. The firm said that it planned to construct its maiden plant to manufacture pellet forms of rice- husk biomass in the middle of the Mekong Delta.
Mencast Holdings gained 2.4 percent to 65 Singapore cents. It has revised the 1-for-1 bonus issue proposed on February 26 to be on the basis of 1 Bonus Share for every 4 existing shares held.
Among top gainers, Dairy Farm International rose 2.1 percent to 12.15 U.S. dollars, while Jardine Cycle and Carriage became one of the top losers by falling 1 percent to 51.05 Singapore dollars. (1 U.S. dollar equals to 0.77 Euros and 1.24 Singapore dollars)