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THE Singapore market reversed early declines yesterday to finish higher for a fourth straight day, although the gains were somewhat limited.
The benchmark Straits Times Index (STI) fell to as low as 2,625.75 in morning trade, but it slowly recovered from its losses as sentiments across Asian equity markets were lifted by a combination of factors. These included a rise in Australian business confidence and gains in computer memory chip and gold prices.
The market got an added boost after European bourses opened in positive territory and United States futures pointed to gains on Wall Street.
Among the region's best performers were Hong Kong's Hang Seng Index, up 2.14 per cent, and the Shanghai Composite Index, which rose 1.71 per cent.
The STI closed 16.96 points, or 0.64 per cent, higher at 2,660.91 after trading within a 38-point band.
There were signs, though, that the euphoria in equities had begun to ease.
According to Citigroup strategist Elaine Chu, Asian fund inflows weakened to just US$68 million (S$97 million) in the week ended last Wednesday, less than 10 per cent of the average inflows for each week between March and July.
Yesterday's trading volume was a healthy 2.66 billion shares, although the value remained under the $2 billion mark at $1.97 billion.
City Developments led the charge, climbing 60 cents to $10.98, while CapitaLand rose three cents to $3.87. Of the 30 blue-chip stocks, only five declined.
Commodity stocks moved higher after the price of gold rallied above US$1,000 per ounce to an 18-month high.
Noble Group, a commodities supply-chain manager, extended gains into its fourth day, surging to its highest level since July last year. The stock added 14 cents, or 6.54 per cent, at $2.28.
Olam International, a supplier of agricultural commodities worldwide, went up five cents to $2.36. Coal producer Straits Asia Resources was up 10 cents at $2.17.
Palm oil stocks were also higher, as investors brushed off concerns over a sharp drop in crude palm oil prices - which fell by over 7 per cent last week and another 3 per cent on Monday on worries that a record soya bean harvest in the US would crimp demand.
First Resources jumped 7.5 cents, or 8.38 per cent, to 97 cents on 30.5 million shares. Golden Agri Resources added 1.5 cents to 48 cents, with 187.47 million shares done, while Indofood Agri Resources surged 14 cents, or 8.75 per cent, to $1.74, with 25.2 million shares traded.
Trading in small-cap stocks continued to overshadow that for their larger peers.
'September-October is usually a weak period for the market, but we're seeing marked interest from retail investors in small-cap stocks,' said a local remisier.
Those in the spotlight included bio-medical company Transcu, which became listed through a reverse takeover deal with Eng Wah Organisation. Investors continued to dump the stock following Monday's 21 per cent plunge. It fell 6.67 per cent to 14 cents yesterday.
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