STI climbs 2.21% to 2,497.22 points on eve of US presidential polls

MARKETS around the world turned positive on the eve of the US presidential election, even though it had not become any clearer whether Donald Trump or Joe Biden would win.

While a Biden win was initially thought to be negative for stocks, because he will probably roll back the corporate tax cuts implemented by the Trump administration, the markets now seem more focused on the broader fiscal stimulus that is likely to be unleashed regardless of who wins.

The broad-based S&P500 Index was up 1.23 per cent overnight, outpacing the 0.42 per cent gain in the technology-focused Nasdaq Composite Index.

In fact, technology heavyweights Microsoft, Amazon and Apple, which were seemingly impervious to the economic fallout of Covid-19, ended the overnight trading session lower, giving way to the broader market that will benefit from the coming fiscal stimulus.

Against this backdrop, Singapore stocks staged a broad rally on Tuesday with gainers outnumbering losers 316 to 131.

The benchmark Straits Times Index ended the day up 54.09 points or 2.21 per cent at 2,497.22, with all 30 of its component stocks in positive territory.

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Market bellwether DBS was the most heavily traded stock by value, with shares worth more than S$128.3 million changing hands. DBS closed 3.88 per cent higher at S$21.43, making it the third best performing STI stock of the day.

The best performing STI stock on Tuesday was Thai Beverage, which closed 5.09 per cent higher at S$0.62.

It was followed closely by Sembcorp Industries, which climbed 5.06 per cent to end at S$1.66. Sembcorp said on Monday that it had sold its water business in Panama, and will chalk up a divestment gain of US$21 million.