SINGAPORE (Thomson Financial) - Singapore shares closed marginally higher
Wednesday led by gains in property and oil-and-gas related counters on their
upbeat industry outlooks.
But gains were capped, with the benchmark index closing off its highs earlier
in the day, as investors found few compelling reasons to buy amid ongoing
uncertainty in equity markets worldwide.
Analysts said the market is awaiting the next Federal Reserve policy meeting on
September 18 for a clearer direction on interest rates.
The Straits Times Index closed up 11.52 points or 0.3 percent at 3,506.09,
after trading between 3,498.48 and 3,531.14.
Gainers beat losers 518 to 271, with 854 shares unchanged.
Volume traded was 2.5 billion shares valued at 2.3 billion Singapore dollars.
UOB Kay Hian analyst K Ajith said it was "pretty risky" to take aggressive
positions in the market at this stage, with no improvement in market breadth and
no clear leadership from banks.
"They are worrying signs, and I think the index will fall before rebounding,"
Ajith said.
He expects the STI to trade within a range of 100 points in the next few days.
Analysts said investor sentiment will remain tentative until a clearer market
trend emerges.
Property heavyweights rose after unlisted developer Far East Organization
reportedly paid a record price for a suburban residential condominium site in
the northern town of Ang Mo Kio, providing further evidence that residential
property demand is spreading into the midrange and mass housing segment.
CapitaLand added 15 cents to 7.70 dollars, City Developments gained 20 cents to
15 dollars and Keppel Land rose 5 cents to 7.85 dollars.
Among blue chip gainers, Fraser and Neave Ltd (F&N) rose on expectations the
company will see good earnings growth in the next few years supported by gains
in its property business. The stock was up 15 cents at 5.30 dollars.
Oil-and-gas related stocks were higher, buoyed by rising oil prices. Singapore
Petroleum added 15 cents to 6.35 Singapore dollars, Labroy Marine was up 5 cents
at 2.29 dollars, and Keppel Corp rose 10 cents to 13.30 dollars.
Wilmar International, which owns palm plantations in Indonesia and Malaysia,
rose on expectations crude palm oil (CPO) prices will remain at their current
high levels on prevailing strong demand. The stock put on 12 cents to 3.54
dollars.
Construction issues were also higher and were among the mostly actively traded
stocks amid the ongoing property boom. Hor Kew rose 2.5 cents to 28.5 cents,
Yongnam Holdings added 1 cent to 41.5 cents, and Chip Eng Seng advanced 1.5
cents to 84 cents.
Banks closed higher after a day of seesaw trading. DBS Group Holdings was up
10 cents at 20 dollars, United Overseas Banking Corp was up 10 cents at 21.60
dollars, and Oversea Chinese Banking Corp was up 5 cents at 8.80 dollars.
Source:Thomson Financial
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