Singapore share prices closed up 1.99 percent at a five-and-a-half-year high on Tuesday after the government said it would ease home mortgage rules to help the residential property market, dealers said. They said the news gave a sharp boost to property and banking stocks, with CapitaLand and DBS, Southeast Asia's largest bank, among the strongest performers.
The Straits Times Index closed up 44.78 points at 2,292.92 on total volume of 1.22 billion shares worth 1.75 billion Singapore dollars (1.03 billion US), from 720.173 million shares valued at 759.87 million dollars on Monday.
Minister for National Development Mah Bow Tan told parliament hours before the stock market closed that the government will ease mortgage financing rules and lift some restrictions on foreigners buying homes.
Under proposed changes, the Monetary Authority of Singapore will allow banks to finance up to 90 percent of the purchase price of residential properties, up from 80 percent.
GK Goh regional economist Song Seng Wun said the policy changes should boost sales of low to middle-income housing projects and spur bank lending.
The Singapore Exchange property index finished up 48.94 points, or 8.36 percent. The financial index gained 55.94 points, or 3.53 percent.
Among property stocks, CapitaLand closed 28 cents, or 11.72 percent, higher at 2.67, while City Developments surged 75 cents, or 9.26 percent, to 8.85.
Wing Tai gained 20.5 cents, or 21.03 percent, to 1.18, Allgreen was up 15 cents, or 13.39 percent, to 1.27, and Keppel Land closed up 15 cents to 2.98.
DBS Bank closed 70 cents, or 4.76 percent, higher at 15.40. Oversea-Chinese Banking Corp finished 60 cents, 5.04 percent, up to 12.50. United Overseas Bank advanced 40 cents, or 2.8 percent, to 14.80.
Among tech stocks, Creative Technologies rose 30 cents to 12.90, while Chartered Semiconductor fell three cents to 1.40.
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