Singapore shares closed 1.45 percent higher on Tuesday, as investors waited for news of the Federal Reserve's plans for its stimulus program from the two-day monetary meeting starting later in the session.
Singapore's benchmark Straits Times Index rose 46.11 points to 3,229.55 points. Trading volume was 1.71 billion shares worth 1.33 billion Singapore dollars. Advancers outnumbered Decliners 294 to 132, while 514 stocks did not move.
The mere suggestion of fine-tuning the stimulus program will be sufficient to unnerve investors accustomed to abundant funds they could put to work in higher-return "risk" assets, such as shares.
The Federal Reserve's stance, along with very accommodative monetary policies by other central banks to promote growth such as the Bank of Japan, had underpinned market sentiment broadly since the beginning of the year.
Phillip Securities Research said "if Straits Times Index can decisively clear above the 3,200 points psychological support level, do trade the bounce. The near term key support level is pegged at 3,100 points."
SIAS Research said the Straits Times Index will find support at 3,150 points.
Singapore Technologies Engineering gained 2.8 percent to 3.99 Singapore dollars. It announced its unit ST Aerospace has signed a deal with UTC Aerospace systems for long-term repair and maintenance of Boeing 787 Dreamliner components.
Singapore Airlines rose 2 percent to 10.40 Singapore dollars. Its passenger load factor fell to 74.6 percent in May from 75.8 percent a year ago. The company said the operating environment remains challenging and yields are expected to remain under pressure.
Lian Beng Group rose 2.9 percent to 53.5 Singapore cents. The construction company said its fully-owned subsidiary won an order in Singapore worth about 85 million Singapore dollars.
Raffles Medical Group ended flat at 2.94 Singapore dollars. OCBC Investment Research upgrades it to 'Buy' from 'Hold', saying a new Hospital Information System and Electronics Medical Records System "would enhance Raffles Medical Group's efficiency and improve the quality of delivery of its healthcare services as patients' records can be easily shared between doctors, nurses and other ancillary services departments."
Among top gainers, Jardine Matheson jumped 2 percent to 62.20 U. S. dollars, while STXPO became one of the top losers by plunging 46.4 percent to 1.78 Singapore dollars. (1 U.S. dollar equals to 1. 26 Singapore dollars)