Singapore shares closed 2.52 percent higher on Thursday, after strong close in U.S. markets overnight boosted investors' sentiment.
U.S. stocks snapped a six-day losing streak fueled by worries of a slowing global economy. The Dow Jones Industrial Average Index closed about 620 points higher, up about 4 percent. U.S. Federal Reserve Bank of New York President William Dudley said overnight the case for a September rate increase has grown "less compelling" given the turmoil in markets around the world. That helped ease concerns about a move that could put further stress on markets.
DBS Group Research said "rising concerns of a technical recession in third-quarter following yesterday's much weaker July industrial production and political unease in Malaysia should cap Straits Times Index's rebound at around 2,960 points at best for now."
Singapore's benchmark Straits Times Index rose 72.43 points to 2,945.43 points. Trading volume was 1.96 billion shares worth 1.61 billion Singapore dollars. Advancers outnumbered decliners 459 to 61, while 417 stocks did not move.
Dyna-Mac Holdings Limited jumped 12.7 percent to 16.9 Singapore cents. It has secured a 12 million Singapore dollar contract from an established and reputable first time new customer, an multinational company based in Singapore, for the construction of 13 units of Pre-Assembled Rack, two units of Pre-Assembled Units and one unit of Pre-Assembled Structure for their Singapore project. With this new contract, the net order book of Dyna-Mac to date stands at 305 million Singapore dollars.
Mapletree Industrial Trust rose 3.4 percent to 1.505 Singapore dollars. Fitch Ratings has affirmed the Trust's Long-Term Issuer Default Rating at "BBB+" with a Stable Outlook. Fitch has also affirmed "BBB+" ratings to its senior unsecured notes issued under the 1 billion Singapore dollar multicurrency medium-term note program.
Among top gainers, Jardine Matheson rose 4.8 percent to 48.75 U. S. dollars, while China International Holdings Limited became one of the top losers by falling 17 percent to 41.5 Singapore dollars. (1 U.S. dollar equals to 1.40 Singapore dollars)