Singapore shares extended gains on Thursday, tracking regional gains as investors responding positively to optimism over the likelihood of the US Federal Reserve cutting interest rates.

The Straits Times Index (STI), a key benchmark for the Singapore Exchange, ranged between 3,896.67 and 3,917.69 throughout the day. It ended the session at 3,917.69, up 13.81 points or 0.35% compared to Wednesday's close.

In economic news, Singapore's retail sales increased 0.3% in April on a year-on-year basis, according to data released by the Department of Statistics, Singapore.

In company news, shares of Acrophyte Hospitality Trust (SGX:XZL) were down over 3% at the close as the trust entered into a conditional purchase and sale agreement with AHM through ARA USH Chicago to sell the Hyatt Place Detroit Auburn Hills for $6.7 million.

LMS Compliance (SGX:LMS) was down nearly 3% after it obtained key industry accreditation from the Singapore Accreditation Council (SAC).

Meanwhile, shares of Nera Telecommunications (SGX:N01) were down over 1% at the close, with the company revealing that it no longer required to report its unaudited financial results on a quarterly.