Singapore shares closed 0.53 percent higher on Monday, after U.S. stocks rallied last Friday with the latest round of tensions in Ukraine easing for now, although simmering tensions in other geopolitical hotspots such as Iraq limited gains.
Russia's defense ministry said it had finished military exercises in southern Russia, which the U.S. had criticized as a provocative step amid the Ukraine crisis.
But investors remained wary of piling back into stocks as the situation in Iraq was marked by an increasing death toll and new U. S. air strikes.
The benchmark Straits Times Index rose 17.56 points to close at 3,306.45 points. Trading volume was 1.49 billion shares worth 814 million Singapore dollars. Advancers outnumbered decliners 290 to 165, while 441 stocks closed unchanged.
Voyage Research said "we think that upside risk outweighs downside risk and investors may not get very good prices selling out now. Instead, accumulating on weakness may be a more appropriate approach."
KrisEnergy Limited rose 2.1 percent to 74.5 Singapore cents. It entered into share sale and purchase deed with Chevron global energy to acquire Chevron overseas petroleum (cambodia) Limited for total consideration of 65 million U.S. dollar. It said production from the first platform is anticipated to peak at 10, 000 barrels of oil per day. The acquisition will be financed by KrisEnergy's revolving credit facility, internal cash resources and other sources of capital.
Frasers Centrepoint Limited inched down 0.9 percent to 1.75 Singapore cents. It announced third-quarter revenue was up 41.3 percent year-on-year to 575.4 million Singapore dollars while net profit was 15.1 million Singapore dollars versus 268.2 million Singapore dollars last year.
TA Corporation Limited closed flat at 34.5 Singapore cents. It announced that the Company's wholly-owned subsidiary, Tiong Aik Construction Private Limited has been awarded the main contract for the proposed condominium development at southern part of Singapore by Harvestland Development Private Limited for a contract sum of 174.4 million Singapore dollars. The contract period is 40 months and work is scheduled to commence by August 20, 2014.
Among the top gainers, Jardine Strategic rose 0.7 percent to 35. 10 U.S. dollars, whereas UOB became one of the top losers by falling 0.3 percent to 22.63 Singapore dollars. (1 U.S. dollar equals to 1.25 Singapore dollars)