Singapore shares surged more than 1% at the close on Thursday with investors responding positively to the chances of the US and Iran continuing their peace dialogue.

The Straits Times Index (STI), a key benchmark for the Singapore Exchange, ranged between 5,164.95 and 5,217.15 throughout the day. It ended the session at 5,217.15, up 55.65 points or 1.1% compared to Wednesday's close.

In an official post on X, Pakistan's Ministry of Foreign Affairs revealed the two parties agreed to continue discussions following the funeral procession of the former Iranian Supreme Leader.

On the corporate front, shares of Stoneweg Europe Stapled Trust (SGX:SET) were up nearly 3% at the close as its total portfolio valuation during the first half of the year rose 1.1% to 2.15 billion euros.

CapitaLand Integrated Commercial Trust (SGX:C38U) closed over 1% higher as it completed the acquisition of Paragon.

Meanwhile, shares of GuocoLand (SGX:F17) closed under 1% higher as it secured a SG$634.7 million green club facility from Oversea-Chinese Banking Corporation (SGX:O39) and Industrial and Commercial Bank of China's ( HKG:1398, SHA:601398) Singapore branch.