THE Straits Times Index (STI) rose 0.6 per cent or 18.15 points to 3,244.06 on Tuesday (Feb 20).
Across the broader market, gainers beat losers 281 to 251 after 1.9 billion securities worth S$978.7 million changed hands.
Regional markets were mixed after China lowered its five-year loan prime rate more than expected.
SPI Asset Management managing partner Stephen Innes said the move shows that the Chinese government is intensifying efforts to stabilise equity markets and boost economic recovery.
“While these measures may offer some relief, managing expectations regarding Beijing’s intervention is important. The government is likely to prioritise piecemeal measures over implementing substantial fiscal stimulus packages,” he said.
He added that the government’s cautious approach reflects a shift away from its former “growth-at-all-costs” model; now, it is moving towards achieving technological self-sufficiency and ensuring macro-financial stability.
While there is “growing belief” that China should adopt a more expansionary fiscal stance and enhance its social safety net, the authorities do not appear to have prioritised this amid competing economic and geopolitical considerations, he said.
Hong Kong’s Hang Seng Index appeared to be buoyed by the news, rising 0.6 per cent. However, South Korea’s Kospi fell 0.8 per cent, while Japan’s Nikkei 225 was down by 0.3 per cent.
On the STI, Seatrium was the top gainer, rising 7.8 per cent or S$0.007 to S$0.097.
Meanwhile, Mapletree Pan Asia Commercial Trust was at the bottom of the table. It fell 1.4 per cent or S$0.02 to S$1.39.
The trio of banks were in the black. OCBC rose 0.9 per cent or S$0.12 to S$13.45, UOB climbed 0.3 per cent or S$0.09 to S$29.51, and DBS gained 0.1 per cent or S$0.04 to close at S$34.17.
