Market Summary 29 December 2012

Wish Everyone A Happy New Year!

Singapore's shares ended 2012's penultimate session in the green, but while hopes the U.S. would avoid dropping off the fiscal cliff as negotiations are set to resume bolstered the market, caution persisted.

"The markets are hopeful," said Alvin Liew, senior economist at UOB. But he added, "Let's not hold our breath." He expects lawmakers may patch up a temporary deal, perhaps a three-month extension. "Judging by the last two years of American politics we've seen so far, you wouldn't be too hopeful of a grand bargain coming out in the next few days. If so, it would be the biggest surprise of 2012."

The 30-share Straits Times Index ended up 7.87 points, or 0.2%, at 3191.80, totting up a total 0.9% gain for the holiday-shortened week. The index has risen 23 of the past 29 sessions, for a total 8.4% gain over the period.

"Should a fiscal deal--even a more modest one--be hammered by next Monday (Dec. 31), we could still see a strong impulse move up," said Ng Weiwen, macro analyst at Phillip Securities, in a note. "Bulls want to charge higher but lack the conviction to do so amid uncertainties over the looming U.S. fiscal cliff."

But Jason Hughes, head of premium client management at IG Markets Singapore, noted "volumes remain quite subdued and you potentially see people realigning their portfolios before the end of the year before taking Monday and Tuesday off and starting afresh in 2013." Volume was scant at 2.19 billion shares valued at only 946.6 million Singapore dollars ($774.1 million). In the broader market, gainers topped losers more than two to one.

Olam climbed 2.3% to S$1.56, coming off an early drop to S$1.485 despite going ex-rights as Singapore state investment company Temasek Holdings continued to increase its holding in the supply-chain manager, with its stake rising to 19% from 18%. Temasek raised its stake to 18% from 16.3% last week. "In our judgment, the company represents a reasonable attractive investment over the long term," Temasek spokesman Stephen Forshaw said by telephone Friday.

Keppel rose 0.4% to S$11.00 after announcing it landed three new contracts valued at a combined S$420 million, bringing year-to-date order wins to S$9.9 billion.

STX Pan Ocean rose 11.4% to S$4.70, despite trading ex-dividend, after Morgan Stanley and Standard Chartered were appointed lead managers for STX group's planned sale of its stake in the bulk shipper. STX Pan Ocean's Korean shares ended up by the 15% daily limit at 4,715 won ($4.40).

UOB ended down 0.3% at S$19.82, well off its early 3.5% drop to S$19.18, the likely driver for the STI's intraday slip into negative territory. Amid low volume, UOB's traded price suddenly made a large drop from one trade to the next at 0356 GMT, with the price moving to S$19.20 from S$19.52, which could suggest a fat-finger error. "We're definitely seeing some strange moves" in the market, IG Markets' Hughes said, citing low volume and end-of-year portfolio moves.

Market Summary 15th December 2012

Singapore's shares powered ahead to set yet another 16-month high Friday, bolstered by positive economic data from China spurring a strong rally on the mainland.

The preliminary HSBC China Manufacturing PMI for December climbed to a 14-month high of 50.9, up from November's 50.5 final reading. The data was slightly above the market's expectation for 50.8, said Suan Teck Kin, treasury economist at UOB. "The data suggest the bottoming out process has already taken place," he said, adding "if it's positive for China, it should be positive for the rest of the world as well, especially for Asia."

The 30-share Straits Times Index ended up 11.88 points, or 0.4%, at 3168.43, tacking on 2.0% for the week. The index has now risen 17 of the past 20 sessions, rallying 7.6% from its Nov. 16 trough. Volume was 2.13 billion shares valued at S$1.20 billion, in line with Thursday's level.

Among stocks with exposure to China's recovery, CapitaLand ended up 1.1% at S$3.76, Global Logistic Properties tacked on 3.0% to S$2.79 and Yanlord rose 4.8% to S$1.54.

Several STI components jumped despite a dearth of news, with Noble rising 1.8% to S$1.15, City Developments climbing 3.5% to S$12.92 and Genting Singapore gaining 1.9% to S$1.37.

"If fund managers do have a need to put in a bit of window dressing, they'll probably focus on all the underperfoming high-beta stocks," said Carey Wong, an analyst at OCBC. "In the fourth quarter, all the high beta underperformers put in a good show," he said. "It's nothing to do with fundamentals."

Gallant Venture ended flat at S$0.28 after it said it would acquire 52.4% of auto-parts company Indomobil Sukses Internasional for US$809.3 million. "It's left pocket to right-hand pocket," said Ferry Wong, an analyst at Citigroup; he said both companies are essentially owned by the Salim Group. "I don't expect Gallant Venture to add expertise on the operation side," said Wilianto Ie, an analyst at Nomura. "It might change the ability of Indomobil to find cheaper funding," he said, adding that "there has always been a presumption that if you are listed in Singapore, you have better access to funding. The financing business of Indomobil will need to issue a lot of bonds."

TT International ended up 20.3% at S$0.178 in high volume accounting for more than 9% of shares changing hands on the SGX after the company said it entered an agreement with Prima BB Ltd. and Utraco Investment Pte. to develop Big Box, a mega-warehouse retail project in Singapore, with a combined investment of S$92.0 million.

Market Summary 8th December 2012

Singapore's shares ended higher Friday amid positive cues from Wall Street as initial U.S. weekly jobless-benefit claims decreased.

The 30-share Straits Times Index ended up 28.91 points, or 0.9%, at 3107.11, after touching an intraday high of 3110.51, within spitting distance of its 3110.86 year-to-date high. The index is up 1.2% for the week; it has risen in 12 of the last 15 sessions.

"Traders anticipated some good numbers out of the Chinese economy this weekend. The local market was also buoyed by better-than-expected U.S. jobless claims last night," said Justin Harper, market strategist at IG Markets Singapore, in a note, citing China's retail sales and industrial production as among the data due Sunday. "For this bullish undertone to spark life into an end-of-year rally, we will need to see more progress on U.S. fiscal cliff talks very soon. And a strong read for tonight's non-farm payrolls report would help, once the Superstorm Sandy effect is factored in," he added.

Volume ticked up slightly from Thursday, with 1.95 billion shares valued at S$1.51 billion changing hands.

Sembcorp Marine gained 2.0% to S$4.51 after landing a contract worth US$434 million to construct two jack-up rigs for Mexico's Integradora de Servicios Petroleros Oro Negro, with delivery scheduled for the fourth quarter of 2013 and the first quarter of 2014. "(The pricing is) slightly higher than what we expected, but for the early delivery, it's in line with expectations. I think the margins on these two rigs will be pretty good," an analyst said, noting Oro Negro is a new client.

Hongkong Land rose 2.4% to US$6.76. Macquarie added the stock to its "Marquee Ideas" high-conviction Buy list. Other property plays with China exposure also rose, with CapitaLand adding 3.4% to S$3.69. "There was a boost for property stocks with links to China, such as CapitaLand, after the Chinese government said urbanisation would be a key theme for the next decade," Mr. Harper said.

Olam received a respite from its recent declines, ending up 0.7% at S$1.46, but it remains down 16.1% since Nov. 19, when negative comments from short seller Muddy Waters' founder Carson Block first surfaced. Macquarie downgraded Olam to Neutral from Outperform. "Muddy Waters' call for insolvency is a stretch. But we must accept that Olam's transformation projects are taking longer than we expected to come through," the house said in a note.

Singapore Press Holdings was the worst-performing STI component, shedding 4.1%, or 17 Singapore cents, to S$4.01 as it went ex-dividend for its planned 17-cent dividend payment. UOB KayHian said its monthly page-count monitor of SPH's flagship Straits Times suggests decent advertising-spend growth of 3%-5% on year in September-November. But the house kept a Hold call as it expects the muted advertising revenue growth to cap any gains.

Market Summary 1st December 2012

Singapore's shares ended higher Friday, turning in gains for nine sessions out of the past ten, as the market shrugged off negative rumblings over negotiations to avert the U.S. fiscal cliff.

Republicans on Thursday rejected President Obama's opening budget-talk bid and House Speaker Boehner said he was "disappointed" with the lack of progress. "The market is prepping for an amicable resolution and attributing the comments from the Republicans as just that. It's not translating into any (market) reaction," said Liu Jinshu, deputy lead analyst at SIAS Research. "The positive is that they've started to talk. It's different from August 2011. This time around, the White House is taking the initiative. If the Republicans reject the package, the blame will be on them," he said. But in a note, Maybank warned "the mood of the crowd can turn on a dime, and we think it best to resort to watching the charts and headlines closer in the short term."

The 30-share Straits Times Index ended up 24.05 points, or 0.8%, at 3069.95, its highest close since Oct. 8. The index tacked on 2.7% for the week. Volume was strong at 2.32 billion shares valued at S$2.36 billion, indicating market players are refocusing on blue-chips after their recent infatuation with penny plays.

But Yeo Kee Yan, market strategist at DBS Vickers, said the gains might not last. "I don't see the index continuing to rise next week. At best sideways, or giving back some of this week's gain," he said. He added that gains will likely be capped until there's a resolution to the fiscal cliff, and said the index's near-term resistance around 3090-3100 was very close. He also expects the traditional year-end lull period to put a damper on gains, with shares picking up again only around the Christmas period.

Olam tacked on 1.0% to S$1.575, extending Thursday's 4.0% rise in strong volume. An analyst said insider buying by the CEO and two directors are "a strong show of support," while there was nothing new in short seller Muddy Waters' latest salvo against the company. Muddy Waters issued an eight-page response to Olam's 45-page rebuttal of the short seller's 133-page report accusing the commodities trader of a litany of failures, ranging from incompetence to malfeasance; Olam called the allegations "false and misleading" and has filed suit in Singapore on allegation of libel and slander.

Among other commodity plays, Golden Agri ended down 0.8% at S$0.66, erasing some of Thursday's 4.7% rise in strong volume accounting for 6.6% of shares changing hands on the SGX.

CapitaLand rose 0.9% to S$3.53. Citigroup said the company's S$505 million bid for a Bishan residential site adjacent to its current Sky Habitat project was a defensive move to prevent competing developers from under-cutting its price.

Genting Singapore advanced 2.4% to S$1.28 in strong volume, with large trade sizes suggesting institutional interest. "Some people believe that we're at the bottom of the earnings cycle for gaming around the region," an analyst said, adding another potential reason for the rise is "you've got pending political change in Japan. So people obviously get hopeful about potential legalization of casinos."

Market Summary at 17th November 2012

Singapore shares ended flat on Friday, surrendering gains in the closing minutes of trading after rising on bargain hunting.

Shares started weaker in early trading, after the government reported Singapore's gross domestic product contracted 5.9% in the July-September period from the previous quarter on seasonally adjusted, annualized terms, sharper than an October estimate of a 1.5% contraction. Although the Straits Times Index rose to an intraday high of 2,954.42 as investors sought bargains, the benchmark index ended 0.01%, or 0.29 point, lower at 2,945.63. Volume fell to 1.48 billion shares from 2.66 billion on Thursday, and gainers outnumbered losers 209 to 183.

The benchmark ended the week 2.1% lower.

However, some analysts said the Singapore stock market has likely bottomed. "Obviously, markets rightfully fear a number of crash-inducing events now, including the U.S. fiscal cliff, a euro-zone breakup, and a China hard-landing," CIMB said in a note. However, "markets have a habit of proving its worst fears, or its worst hopes, unfounded though. The fact that all these are expected means that it is unlikely to happen; if anything were to trigger a major crash, it has to be something not expected now." Several economists say they expect U.S. politicians to reach a deal by the end of the year to avoid sharp tax increases and spending cuts, popularly known as 'fiscal cliff.'

Fraser & Neave was the top performer, gaining 1.6% to close at 9.28 Singapore dollars (US$7.58) as rival Thai and Indonesian tycoons battled for the beer-to-real estate conglomerate. Thai billionaire Charoen Sirivadhanabhakdi's TCC Assets, which has submitted a bid for Fraser & Neave, is considering all options--including raising its offer--after Overseas Union Enterprise, controlled by Indonesia's Riady family, made a counter offer for the company Thursday, according to people with knowledge of the deal.

Stocks of several other companies that had been battered earlier this week clawed back. Wilmar International added 1.3% to close at S$3.16 after losing 1.6% earlier in the week and Noble Group gained 1% to close at S$1.06. However, Golden Agri-Resources closed 2.4% lower at S$0.60, as investors buying the stock now won't be eligible for dividend payment.

Global Logistic Properties was the biggest decliner among benchmark shares, shedding 2.7% to S$2.52 amid signs of economic trouble in Japan and China, which are its main markets.

10th November 2012

Singapore shares were flat Friday as encouraging economic data from China buoyed market sentiment, balancing worries about the looming U.S. deadline for striking a tax deal.

Chinese industrial production rose 9.6% in October from a year earlier, beating market forecasts and picking up pace from the previous month. The improvement in manufacturing "adds more fuel to the bottoming-out argument," said Justin Harper, a market strategist at IG Markets. Meanwhile, inflation in China moderated in October, showing that the government has room to further stimulate the economy if necessary. "This has caused stimulus junkies to start salivating at the prospect of more policy easing from the PBOC," said Mr. Harper.

But worries about the U.S. fiscal cliff weighed on Asian equities markets generally. Still, Singapore's 30-share Straits Times Index shed only 0.1%, less than regional counterparts like Hong Kong's Hang Seng Index, which was down 0.9% Friday, and Korea's Kospi, which lost 0.5%.

The STI ended 2.69 points lower at 3009.56. Psychological support at the 3000 level might have curtailed the STI's losses, as trade was "directionless" for most of the day, said SIAS Research analyst Ng Kian Teck. Volumes were lower with 1.27 billion shares changing hands compared with 1.72 billion Thursday. In the broader market, losers outnumbered gainers 263 to 135.

Noble Group plunged 7.8% to close at S$1.175, making it the biggest decliner among the STI components after its third-quarter earnings disappointed investors. UOB KayHian cut the commodity supply-chain company to a sell rating from buy, citing a weaker-than-expected performance in the agriculture and energy businesses, even though the company posted a net profit of US$75 million overall.

Wilmar climbed 1.6% to end at S$3.17, after reporting a 26% rise in third-quarter income.

OCBC crept 0.2% higher to end at S$9.10 as its third-quarter results, including a nearly fourfold increase in net operating profit, were in line with what the market was expecting.

26th October 2012

Singapore's shares ended the holiday-shortened week moderately higher, shrugging off negative cues from Wall Street as well as any dent in sentiment from the scrapping of the Dynasty REIT IPO.

"The only thing I can put my finger down to is news from yesterday, here in Asia, that the Chinese gauge of manufacturing, the HSBC and MNI, showed slight improvement in manufacturing activities. It gave those sitting on the sidelines a little added confidence to come in," despite poor European data, said Song Seng Wun, head of research at CIMB. "There's really nothing else. The earnings front isn't giving anyone any reason to go either way."

The 30-share Straits Times Index ended Thursday up 12.78 points, or 0.4%, at 3057.51. While the index eked out a 0.3% gain for the week, it remains stuck in recent ranges, unable to break above 3060 resistance. Volume was sleepy at 1.39 billion shares valued at only S$1.01 billion, heavily skewed toward penny plays.

Takeover target Fraser & Neave remained in the spotlight, ending up 0.3% at S$9.23 after TCC Assets extended its S$8.88/share offer for the conglomerate to Nov. 8 from the original Oct. 29 deadline. Volume in the shares was strong, with around S$43 million worth changing hands amid a series of large trades.

Singapore Airlines rose 0.3% to S$10.68, in line with the broader market, not reacting much to its plans to acquire 25 new Airbus aircraft in an order valued at US$7.5 billion and its plans to end non-stop Singapore-Los Angeles and Singapore-New York flights. Credit Suisse doesn't expect the aircraft orders to affect the carrier's finances much near term, but it says the impact of mothballing the non-stop Singapore-U.S. services will be more immediate. "The route cancellation is a tacit admission of the difficult trading that we think will be evident in Singapore Airlines' fiscal-2Q13 numbers on Nov. 2--particularly given its premium market exposure," it said in a note, adding it may raise earnings forecasts after the money-losing service is cancelled.

Hutchison Port Holdings Trust fell 4.3% to S$0.785 after reporting its third-quarter net profit fell 15.1% year-on-year to HK$601.7 million, with results around 13% below HPHT's prospectus projection amid weak U.S. and Europe trade demand. Jefferies downgraded the stock to Hold from Buy after the results missed its forecasts. "Facing tough macro headwinds, low quality volume growth and high capex requirements, we expect HPHT to cut its 2013 dividend by 10% from the 2012 level followed by a 2% cut in 2014. The recent 15% rally on yield-chasing trade is also a bit excessive in our view, without fundamental support," the house said.

20th October 2012

Singapore shares ended lower Friday, weighed by disappointing quarterly earnings reports in the U.S. and among Singapore companies.

Poor third-quarter earnings results from Google dragged U.S. stocks overnight and the downbeat mood appears to have spilled over into Asian and European markets. "I think the guidance is still looking a bit cautious," said Carey Wong, an analyst at OCBC. "That's why the market isn't really going anywhere." But signs of improvement in China's economy that emerged this week may buttress investor sentiment and support Singapore shares in future sessions, he added.

The 30-share Straits Times Index declined 11.44 points, or 0.4%, at 3048.92. Volumes were up with 1.8 billion shares changing hands, up from Thursday's 1.4 billion.

Lackluster earnings reports from some STI component companies also dented share prices. Singapore Exchange slid 0.7% to close at S$6.80 after reporting net profit fell 15% in the quarter ended September 30, on lower trading volumes.

Offshore rig-builder Keppel Corp. fell 0.9% to close at S$11.29, after it reported third-quarter profit fell 14.7% on-year. "While the company has been guiding for margins to come down for some time, we're seeing this play out," said Vincent Fernando, an analyst at Religare Capital, who kept the stock at Buy, but lowered his target price to S$12.80 from S$13.90. Another rig-builder, Sembcorp Marine Ltd., was the biggest decliner among STI components, falling 1.6% to close at S$4.86.

Bucking the general selling trend was Fraser & Neave Ltd., up 4.0% to close at S$9.29, after property firm Overseas Union Enterprise Ltd. said it is in talks to make an offer for the conglomerate. OUE's advance buoyed F&N shares as investors reckoned that the emergence of a new suitor would lead Thai billionaire Charoen Sirivadhanabhakdi to increase his S$7.2 billion bid.

F&N was the second-most active share by value traded, with S$105.6 million shares changing hands. It was eclipsed only by Indonesian coal play Geo Energy, which saw volumes of S$149.9 million in shares traded, and advanced 34% from its IPO price of S$0.325 to close at S$0.435.

Market Summary 13 Oct 2012

Singapore shares ended higher, tracking gains in some regional markets while the central bank's decision to keep its currency policy unchanged assured investors about the Singapore dollar's safe-haven status. However, traders and analysts said market participants could turn cautious in the coming weeks as the third-quarter earnings season kicks in.

The benchmark 30-component STI ended 0.3%, or 9.09 points, higher at 3041.75 points, with a total of 1.44 billion shares changing hands, up from 1.24 billion Thursday. The index ended 2.1% lower on the week.

"Capital flows into the Singapore dollar may continue as the SGD remains one of the safe-haven currencies in this world amidst the current uncertainties," UOB Economic-Treasury Research said in a note.

Earlier in the day, the Monetary Authority of Singapore unexpectedly kept its monetary policy unchanged and said it will continue to guide the local currency on its current appreciation path, as inflation concerns trumped a contraction in the economy in the third quarter.

Phillip Securities in a note said any gains in the Singapore stock market would be limited in the near term, adding that investors should take a "nimble" trading stance in the short term. "Over the next couple of weeks of corporate reporting season, forward earnings guidance as well as the economic outlook will prance to the forefront of investors' minds and dictate market direction," it said.

Shares were mostly mixed, with commodities stocks leading the gains. Wilmar International finished the day 3.6% higher at 3.17 Singapore dollars (US$2.58), as news that Malaysia is set to cut its export duty structure lifted investors' sentiment. "It's one of the better companies in terms of having feet in both Indonesia and Malaysia and (being) able to trade around any opportunities from" the potential tax change, an analyst said. Commodities companies Olam International gained 1.8% to S$1.95 and Golden Agri Resources rose 1.6% to S$0.645.

Fraser & Neave, which is currently the takeover target of Thai billionaire Charoen Sirivadhanabhakdi's TCC Assets, ended flat at S$8.89 after trading in positive territory for most of the day. Investors said they hope Mr. Charoen would raise his offer price of S$8.88 a share for the company.

Shares of DBS Group Holdings were up 0.3% at S$14.18, as the bank said after the market closed Thursday that it sold a 10.4% stake in Bank of the Philippines Islands to Ayala Corp. for US$616.4 million to boost capital before Basel III rules kick in next year.

The Singapore government's move last week to tighten the property market weighed on developers. CapitaLand was down 0.6% at S$3.16, while City Development lost 0.4% to S$11.52.

In the broader market, gainers dwarfed decliners 214 to 166.

6 October 2012

Singapore shares rose to a 14-month high tracking a regional rally Friday as investors cheered upbeat U.S. economic data and reassurances by the European Central Bank chief to support troubled euro-zone economies.

Underpinning the rally were better-than-expected weekly jobless claims and factory-order data in the U.S. as well as ECB President Mario Draghi's affirmation Thursday of the central bank's plan to purchase bonds from European states that request assistance.

The 30-share Straits Times Index ended 0.7%, or 21.23 points, higher at 3,107.87--its highest closing level since Aug. 3, 2011. For the week, the index closed up 1.6%.

However, while Thursday's U.S. jobless-claims data may have boosted expectations slightly, "much hope rests on tonight's lottery of the U.S. employment report," UOB Economic-Treasury Research said in a note. "The risk here is for a marginal beat to disappoint." "So here we sit again with the chance that risk assets could be boosted whichever way the number prints," as a weak reading might be seen as a precursor to more stimulus steps by the U.S. Federal Reserve, Jason Hughes, head of premium client management at IG Markets Singapore, said. "Cynics out there might be right in assessing that this non-farm number doesn't really matter all that much then."

Some cautiousness ahead of the U.S. jobs data due later in the global day helped drag trading volume down to 1.35 billion shares from 1.6 billion shares traded Thursday.

Gainers outnumbered decliners 277 to 163. Although only 14 of its 30 components ended higher, the STI held on to gains supported by strong performance by Jardine-linked heavyweights. Jardine Cycle & Carriage, the index's best performer, surged 6.9% to S$53.26, as analysts flagged an upbeat outlook for its 50.1%-owned Indonesian automotive unit, Astra. Credit Suisse expects Indonesia to pass low-cost green car regulations in the next six months, and Astra expects to launch its models by the second half of 2013, while its competitors are tipped to launch only at the end of 2013.

Palm oil company Golden Agri-Resources snapped a three-day losing streak, rising 2.4% to S$0.645 as crude palm oil prices recovered from recent sharp drops.

Some property stocks also gave the benchmark index a lift. CapitaLand and rival City Developments both extended recent gains, with CapitaLand ending 0.3% higher at S$3.30 and City Developments adding 0.2% to close at S$11.95. Hongkong Land rose 0.8% to end at US$6.08.

29 September 2012

Shares in Singapore closed little changed on Friday, giving up gains from earlier in the day as investors remained jittery about the sovereign debt crisis in Europe and didn't want to take fresh positions going into the weekend.

The 30-share Straits Times Index closed 0.91 points, or 0.03%, higher at 3,060.34 after touching as high as 3,073.08. The benchmark slipped into the red briefly. The STI finished the week with a 0.6% loss as enthusiasm about central banks injecting life into the world economy waned and concerns about some European nations' ability to push bitter reform measures came back to haunt markets.

Volumes were lower at 1.57 billion compared with 2.07 billion on Thursday and gainers edged out decliners 230 to 209.

"It is still too early to tell if this is but a minor relief rally in a larger down-move, or if the decline is indeed over and markets are reverting back to risk-on again," Maybank analysts said in a note. The benchmark shares likely lack the momentum to push the index out of its recent 3046-3088 band, especially as the weekend kept players from taking firm positions.

Relatively safer stocks, whose businesses are less affected by the global economy, were among the prominent gainers. Investors also like these companies because of their regular dividend payments.

ComfortDelGro was the top performer on the STI and the transport operator closed 2.4% higher at S$1.715. Singapore Technologies Engineering was the second best performing stock, up 2.0% at S$3.54. Mobile operator StarHub rose 1.4% to S$3.72.

Fraser & Neave closed little changed after its shareholders agreed, as expected, to sell their stake in a beer joint venture to Heineken for about $4.6 billion, ending a two-month takeover saga. Shares shed 0.1% to S$8.88.

Cyclical stocks, those most exposed to the global economic environment, had fewer takers. Golden Agri-Resources shed 0.8% to S$0.660 while Noble Group was off 0.4% at S$1.325. Genting Singapore settled 0.4% lower at S$1.37.

22 September 2012

Singapore shares ended firmer Friday as riskier assets like equities were supported by ample liquidity and the prospect of more to come following moves by central banks to ease policy.

The 30-share Straits Times Index closed 0.5%, or 15.62 points, higher at 3078.23. The benchmark index gained 0.3% during the week. Gainers outnumbered decliners 292 to 139 while volumes were nearly unchanged at 1.43 billion shares.

"The euphoria over QE3 is mostly done and attention will shift back to the economic part of the equation," says Lee Kok Joo, head of research at Phillip Securities. "Attention will shift to whether there's any improvement in the macro outlook. This will be the catalyst for any rerating of the market going forward."

OCBC analyst Carey Wong said "the worse the economy does the better rewarded" the market is. "People are expecting money to pour into Asia," Mr. Wong said. "Singapore continues to be a relatively safe haven, so some of the funds are still coming here. Interest rates here are low. Then of course, there's a good chance the Singapore dollar could continue to appreciate."

Near-term resistance remains likely around the year-to-date high of 3088.

Cyclical plays received strong support with shipping company Neptune Orient Lines climbing 1.8% to S$1.145, Golden Agri-Resource up 0.8% at S$0.665 and Olam International 0.5% higher at S$2.05.

Maybank-Kim Eng has upgraded Neptune Orient Lines to Buy from Sell, saying the Federal Reserve's third round of quantitative easing and the European Union's bond-buying program offer a solid floor for the world-wide economy for now. "Take advantage of residual weak sentiment from NOL's exclusion from the STI to own a stock well poised to ride the recovery cycle," the house said.

Property stocks, which benefit from the low-interest rate environment, were also higher with both CapitaLand and City Developments up 1.4% at S$3.17 and S$11.63 respectively.

14th September 2012

Singapore shares surged Friday amid a broad Asian rally after the U.S. Federal Reserve announced an open-ended bond-buying program to boost the American economy.

"The Fed's blank check was enough to send all prices higher. This means 'risk on,' at least for now," UOB Economic-Treasury Research said in a note. But "one cannot help but wonder what would happen when this Dickensian market goes 'please sir, I want some more.'"

The 30-share Straits Times Index rose 1.3%, or 40.28 points, to close at 3070.42--its highest closing level since Aug. 6. For the week, the benchmark index ended 1.9% higher. In the broader market, volume climbed to 2.39 billion shares compared with 1.47 billion shares traded Thursday. Gainers outnumbered decliners 406 to 112.

DBS Vickers expects the benchmark index to gradually work toward 3200 in the fourth quarter, with 3050 and 3075 the two immediate levels to watch. While the STI may underperform the region, DBS Vickers said that "opportunities can be found among the cyclical stocks" such as commodity and offshore and marine names.

Commodity counters led the blue-chip charge, in which all but three STI components ended higher. Wilmar International soared 8% to a one-month high at S$3.24 while Noble Group climbed 5.5% to S$1.35--its highest close since April 4. Olam International, too, hit a one-month high, rising 5.1% to S$2.08. Golden Agri-Resources gained 3% to end at S$0.690.

Property plays also pushed higher, many of them reversing losses suffered Thursday. Hongkong Land led the way with a 2.2% rise to US$6.10 while City Developments added 2% to end at S$11.40. CapitaLand ended up 1% at S$3.18.

Singapore's two main rig builders rose to near-four week highs with Sembcorp Marine advancing 1.8% to S$5.08 and rival Keppel Corp. closing 1.2% higher at S$11.32.

8 September 2012

Singapore shares joined a regional rally to end higher Friday after European Central Bank President Mario Draghi on Thursday presented a plan to tackle Europe's debt crisis.

News that Beijing has approved greater infrastructure spending, including 25 subway and 13 highway projects since April, also boosted sentiment, helping the 30-share Straits Times Index snap a four-day losing run.

"The liquidity fairies delivered on what the markets had been crossing their fingers for over the past six weeks," Andrew Taylor, markets strategist at GFT Markets, said in a note. But "markets sort of know in the back of their mind that these band-aid solutions have only a limited shelf life and each time their effects are reduced," Mr. Taylor said, adding that if European Union leaders don't move forward on integration, "we will see the same strong sell off."

The 30-share Straits Times Index rose 0.8%, or 22.44 points, to end at 3,011.70, but still closed the week 0.5% lower. Volume rose to 1.52 billion shares from 1.08 billion shares Thursday, while gainers outnumbered decliners 324 to 128.

"It will take like one or two months for different market segments to gain confidence. The volume won't change overnight," said Liu Jinshu, deputy lead analyst at SIAS Research. "Weak volume may seem that the market is noncommittal, but given the overnight movement in the (U.S. markets), this rally may have some legs to run."

Cyclical counters, sensitive to shifts in global economic sentiment, led the gains. Commodity trader Noble Group was up 3.4% at S$1.235, while rival Olam International gained 2.7% to S$1.91.

Rigbuilder Keppel Corp. also registered gains, and was up 1.5% at S$11.15, while container shipper Neptune Orient Lines advanced 3.3% to S$1.11.

Property developers also joined the broad-based blue chip rally. CapitaLand rose 1.7% to S$3.08 and City Developments advanced 1.5% to S$11.27.

Golden Agri-Resources performed worst among just six declining STI components, dropping 4.3% to S$0.665, after the palm-oil company announced plans to raises up to US$500 million through a five-year convertible bond issuance. "We are near-term negative on this development as it could dilute our fully-diluted (earnings per share) by 4%," CIMB said in a note. "But if the group can activate earnings-enhancing (mergers and acquisitions), we will turn positive on this exercise."

Market Summary 25 August 2012

Singapore shares closed lower on Friday, tracking declines in regional peers, as doubts set in about the likelihood that global central banks are preparing to announce steps to stimulate economic growth.

The 30-shares Straits Times Index closed 0.2%, or 5.88 points, lower at 3,050.49. Intraday, the benchmark touched a low of 3,036.68. It ended the week with a 0.4% loss. Market volume was lower, with 1.22 billion shares trading hands compared with 1.76 billion on Thursday. Losers outnumbered gainers 213 to 168.

Asian stocks took their cue from the U.S., where the Dow Jones Industrial Average posted its biggest loss in more than a month as investors grew less sure that a new round of quantitative easing is on the way. Lim & Tan Securities said in a note that earlier expectations the U.S. Federal Reserve was preparing to take steps to support the economy have boosted markets to the point where they are now vulnerable to a setback in the absence of new Fed moves.

In Singapore, Keppel Corp. was among the worst performers on the benchmark index, shedding 1.6% to close at S$11.39 as some investors sought to book profits after a run up in the share price of the world's biggest rig builder after it announced a slew of orders this month. Smaller rival Sembcorp Marine closed 0.6% lower at S$5.03, also giving up some of its recent gains.

Olam International shed 1.5% to close at S$2.00 as investors remained jittery about the commodity supplier's earnings report, due on Tuesday. Noble Group closed 0.8% lower at S$1.245, while Wilmar International shed 0.6% to close at S$3.18.

Neptune Orient Lines, whose shares react sharply to developments in the western economies where the container shipper is most exposed in its business, fell 1.3% to close at S$1.145.

Fraser & Neave was the top performer on the STI, adding 1.6% to close at S$8.45 after a large chunk of the company's shares traded hands in a block trade, fuelling speculation Thai Beverage is building up its stake in the company ahead of the conglomerate's shareholders' vote on Heineken's offer for Asia Pacific Breweries, the makers of Tiger beer. Asia Pacific Breweries was flat at S$53.

Market Summary 18 August 2012

Singapore shares closed flat Friday, with traders content to hold their positions ahead of a holiday weekend, but cyclical stocks gained modestly and commodity plays edged down.

The 30-share Straits Times Index fell 0.03%, or 0.78 points, to close at 3,062.11. Volumes were 1.74 billion shares, down from 1.99 billion on Thursday, with gainers outnumbering losers by 197 to 157.

Rig-builder Keppel Corp. continued its climb, gaining 0.5% to close at S$11.58, as the stock benefits from a fat orderbook.

Commodity companies closed lower, amid concerns that their margins will be squeezed as governments seek to tamp down inflation and the global economy remains tepid. Olam International Ltd. fell 1.0% to close at S$2.04, while Golden Agri-Resources Ltd. dropped 0.7% to S$0.71.

Shares of Fraser & Neave Ltd. and Asia Pacific Breweries Ltd. were suspended from trade, at the companies' request, as people familiar with the situation said Heineken is in talks with F&N about an increased offer for APB. Heineken now raises offer for APB to $53 from $50.

Just to shared.

Singapore is in holiday mood that is why the shares does not move volatility but inch up or down. The USA seems has better recovery rate now compare to others nations. Europe remains flat and China hard landing seems getting worried. I hope their government aware the situation and planning for solution, otherwise their hard landing will get the world economic worsen. 

Market Summary 11 August 2012

Singapore shares ended flat Friday in line with most regional bourses, as disappointing Chinese trade data curbed appetite for shares. The 30-share Straits Times Index inched up 1.95 points to close at 3,054.20.

China's trade surplus fell below expectations, as exports suffered from slack external demand. Earlier in the day, Singapore's government announced the economy contracted 0.7% in the second quarter, a slightly smaller contraction than forecast earlier, but it warned of headwinds from global uncertainties. "There's no inspiration on the macro front" in either Singapore or China, said Song Seng Wun, head of research at CIMB.

Volumes were down with 1.17 billion shares traded compared with 1.36 billion on Wednesday. Singapore markets were closed Thursday for National Day. Gainers outnumbered decliners 216 to 146.

Among the shares that gained, Keppel Corp. rose 1.5%, closing at S$11.40, after it announced two rig-building contracts worth about US$950 million from Brazil's Petrobras-led consortium.

Food and beverage firm Fraser & Neave Ltd. was up 0.9% after a block trade Friday morning raised speculation that Thai Beverage PCL could be adding to its stake. ThaiBev has been building its stake in F&N, and now owns 24.1%. Goh Han Peng, an analyst at DMG & Partners, said it's likely ThaiBev is behind the latest trade because it would pressure Heineken NV to increase its offer for Asia Pacific Breweries Ltd. Heineken and F&N have a 50-50 joint venture that owns a 64.8% stake in APB.

Among the losers on the STI, Neptune Orient Lines was the day's biggest decliner, shedding 4.1% to close at S$1.165, after the container shipper posted a net loss of US$291 million on Wednesday.

Capitaland declined 2.29%, closing at $2.99, as investors remain wary of China's property market. "The perception is that the Chinese property market, although it has bottomed out, it may not be allowed to run too much," said CIMB's Song.

Just to share.

Market Summary at 27th July 2012

Singapore shares closed slightly lower on Friday amid lower volumes as traders were unwilling to take fresh positions ahead of the weekend, while Wilmar International fell after being asked by the Chinese government to keep edible oil prices steady.

The 30-share Straits Times Index fell 0.2%, or 6.08 points, to close the day at 2,998.49 after touching an intraday high of 3,029.53. However, the benchmark fell below the psychologically important 3,000 mark in the latter half of the trading session.

The markets had started on a positive note, buoyed by a statement Thursday by European Central Bank President Mario Draghi, who said the ECB is ready to do whatever it takes to preserve the common-currency union.

Shares of 184 companies gained while 171 ended lower on Friday. However, volumes were lower at 1.24 billion compared with 1.46 billion on Thursday and the benchmark finished the week with a 0.6% loss.

"It's a Friday...Things might happen over the weekend. Investors might not be willing to take positions at this point in time," said Lee Kok Joo, head of research at Phillip Securities. He added that the ECB's statement of support "might not be enough to bring cheer to the market over the weekend."

Singapore Airlines closed 0.7% lower at S$10.82 as some investors sought to cash in on the carrier's 2% gain on Thursday after it reported improved income in the April-to-June quarter.

Wilmar was the worst performer on the benchmark with a 4.4% loss to end the day at S$3.28. The company said that the Chinese government has advised edible-oil producers to avoid raising prices "unless absolutely necessary." The move possibly reflects that the government is worried about resurgent food prices despite inflation ebbing to its lowest level since January 2010, after a sharp weather-driven rally in U.S. grain prices late last week.

In contrast, other commodity firms were among the biggest gainers on Friday as investors hoped efforts in Europe to staunch the region's economic crisis would benefit suppliers. Olam International ended the day with the biggest gains among the 30-STI stocks. Its shares gained 2% to S$1.80. Noble Group was up 1% at S$1.045 while Golden Agri-Resources gained 0.7% to end at S$0.715.

Singapore's telecommunications companies, considered relatively safer bets in a volatile market, also gained. Singapore Telecommunications rose 1.2% to S$3.48 and smaller rival StarHub was 1.1% higher at S$3.68.


Just to share.


In my previous post, http://sharesdiscussion.blogspot.nl/2012/07/market-summary-13-july-2012.html i was saying the 3000 points will be penetrated and do not be excited if that happened. I think that situation still apply on current STI. Past week STI falls below 3000 points again; it will keep struggling at this level. 


If any negative news releases, it is advisable to sell off your short term scheduled stocks immediately and wait for bottom shopping. If STI unable to firm itself better at 3000 points, deep slump will definitely happen. Anyway STI remains uptrend now, the chance to go higher is increasing unless any shocking news being released at near term. 

Market Summary 21 July 2012

Singapore shares snapped a five-session rally to end lower Friday as uncertainties over the global economy and corporate earnings prompted investors to book profits ahead of the weekend.

The 30-share Straits Times Index fell 0.4%, or 13.43 points, to 3,015.53, reversing some of the index's 1.9% gain over the last five sessions. Despite the fall, the index still ended the week 0.7% higher.

"It's quite a bit of profit-taking," said Carey Wong, an analyst at OCBC. "We are approaching the weekend. Yesterday, we did hit the previous high--3,033--but the market wasn't very convinced. It didn't have the strength to sustain itself."

Noting that corporate earnings have so far been in line with expectations, Mr. Wong said "what potentially could happen is the market has not run too much ahead, but most of the positives may have been priced in. So for the market to continue to push ahead or stretch valuations may be a little bit tough."

Volume, while relatively sparse, inched higher to 1.27 billion shares from the 1.24 billion shares traded Thursday, while decliners outnumbered gainers 223 to 133.

Property-related stocks performed poorly, led lower by shopping mall developer CapitaMalls Asia's 2.2% decline to S$1.58. Real estate group CapitaLand fell 0.3% to S$2.95, while rival City Developments retreated 0.1% to S$11.89.

Other counters sensitive to economic cycles also slumped, including palm oil producer Golden Agri-Resources, which fell 1.3% to S$0.760. Rival Wilmar International eased 1.1% to S$3.58, while Olam International declined 0.8% to S$1.845.

Singapore Exchange was among just eight gainers on the benchmark index, rising 1.1% to S$6.75 after U.K. newspaper Daily Telegraph reported late Thursday that the bourse may be in talks with the London Stock Exchange on a potential merger. SGX denied the rumors in a statement issued late in Friday trading.

Just to share.

STI Dividends brings 2012 YTD total return to 15.02%

Over the first two weeks of July, the STI gained 4.07%. This brought the STI 2012 YTD price gain to 13.20%, placing Singapore at the top of the world’s major stock markets in terms of performance.

The total return of the STI in the 2012 YTD amounts to 15.02% with approximately 1.82% in dividend return added to the 13.20% price gain.

The 2012 YTD total returns of the 30 STI stocks have varied from -28.55% for Wilmar to +44.31% for CapitaMalls Asia.

For the 29 STI stocks that pay dividends, indicative yields vary from 0.70% for Jardine Strategic and City Developments to 5.59% for Starhub.

Over the first half of July, the Straits Times Index (STI) gained 4.07%.  This brought the 2012 year-to-date (YTD) price gain to 13.20%. The YTD return of 13.20% places Singapore at the top of the world’s major stock markets in terms of performance.  In SGD terms, the 2012 year-to-date gains of the Dow Jones Industrial Average and Hang Seng Index are +2.03% and +1.19% respectively.

The 13.20% price gain of the STI is not inclusive of the dividends that have be paid on constituent stocks over the first six months. Each of the 30 constituents stocks are weighed in the index according to the size of the stock, that is its market capitalisation. Thus, with its 10% STI weighting, the dividend of SingTel will have more impact on the total return of the STI than the dividend of Starhub with its less than 1% STI weighting.

Taking the index weightings of the 30 STI stocks into consideration with the respective dividend distributions in 2012, the total return of the STI in the YTD amounts to 15.02%. That is, 13.20% in price return and 1.82% in dividend return.

The total return of the 30 constituent stocks, in addition to indicative dividend yields are detailed below. The indicated dividend yield, consists of the most recently announced dividend amount, annualised based on the payment frequency, then divided by the last price. In this case, the last price is the Friday close.

For instance in the case of CapitaMall Trust, the most recently announced divided of S$0.023 is then annualised to S$0.092 based on a quarterly distribution and divided by the Friday close at  S$1.945. This produces an indicative dividend yield of 4.73%.

Total Return of 30 Stocks that make up the Straits Times Index
STI Constituents SGX Code Price Change YTD (%) Indicative Total Return (%) YTD Dividend Yield (%) CapitaLand Ltd C31 34.47 2.03 37.33 CapitaMall Trust C38U 14.41 4.73 16.7 CapitaMalls Asia JS8 42.92 0.93 44.31 City Developments C09 28.27 0.7 29.28 ComfortDelgro Co C52 14.13 3.72 16.62 DBS Group Holdings D05 23.09 3.95 25.6 Fraser And Neave F99 25.65 2.31 29.06 Genting Singapore G13 -9.27 0.73 -8.73 Global Logistic Properties MC0 24.79 1.37 24.79 Golden Agri-Resources E5H 0.7 2.56 3.22 Hongkong Land USD H78 31.72 2.68 34 Jardine Cycle & Carriage C07 -3.37 3.3 -0.57 Jardine Matheson USD J36 12.14 2.37 14.08 Jardine Strategic USD J37 16.91 0.7 17.49 Keppel Corp Ltd BN4 16.45 3.97 19.17 Neptune Orient Lines N03 -1.78 0 -1.78 Noble Group Ltd N21 -2.21 1.88 -0.42 OCBC Bank O39 16.22 3.3 18.17 Olam International O32 -12.68 2.69 -12.68 Sembcorp Industries U96 32.61 2.8 36.45 Sembcorp Marine S51 33.75 2.21 35.17 SIA Engineering S59 21.87 5.02 21.87 Singapore Press Holdings T39 8.94 3.98 10.93 Singapore Tech Eng S63 23.69 2.16 25.32 Singapore Telecom Z74 12.3 4.55 12.3 Singapore Airlines C6L 4.33 1.89 4.33 Singapore Exchange S68 6.04 4.15 7.33 StarHub Ltd CC3 23.02 5.59 26.9 United Overseas Bank U11 26.98 3.09 29.77 Wilmar International F34 -29 1.72 -28.55
Source: Bloomberg, 13 July 2012

Total Return of 30 Stocks that make up the Straits Times Index

The performances of the 30 stocks of the STI have varied with four out of five STI stocks producing a YTD return by both measures of price gain and total return.  As detailed in the table, performances have varied from a total return of -28.55% for Wilmar to +44.31% for CapitaMalls Asia. For the 29 STI stocks that pay dividends, indicative yields vary from 0.7% for Genting to 5.6% for Starhub.

With reporting season to soon begin in earnest, investors are reminded that the weekly economic calendar provides dates of earnings reports and ex-dividend dates. Investors are reminded that buyers of the stock on the ex-date will not receive the most recently declared dividends. Subscription to the calendar is available here.

Dividends declared by Singapore Exchange (SGX) listed companies will be distributed either in cash or shares. For cash dividends, investors can opt for cheque payment or direct crediting services. The latter mode will provide the investor with the convenience of receiving Singapore-dollar dividends in the designated bank account directly on payment date. Investors can hence save the time and hassle of making a trip to the bank to deposit your cheques.

Source from SGX

Market Summary 13 July 2012

Singapore shares ended higher Friday as news that China's economy grew in line with expectations in the second quarter eased fears of a sharp slowdown in the world's second-largest economy.

China reported Friday that its economy expanded 7.6% on year in the previous three months, the lowest rate since the first quarter of 2009, but matching the median estimate of 15 economists polled by Dow Jones Newswires. "The day started out as a bad one for risk, with Italy downgraded by Moody's and Singapore's [gross domestic product] surprising to the downside," Deutsche Bank said in a note. But the China economic data "has helped the Asian equity markets to generally be in positive territory."

The 30-share Straits Times Index rose 0.8%, or 23.52 points, to 2,995.56, reversing from a 0.6% decline on Thursday. Intraday, the benchmark touched a high of 2,999.34, very close to piercing the psychological resistance level of 3,000. For the week, the index closed 0.6% higher.

Even so, "traders are still overwhelmingly favoring lower-risk assets with so much concern still circulating over the rate of global growth for the remainder of 2012," Tim Waterer, senior trader at CMC Markets, said in a note. In a sign of still-fragile sentiment, volume declined to 1.75 billion shares from 2.36 billion shares on Thursday. Gainers outnumbered decliners 225 to 133.

Food and beverage company Fraser & Neave rose 5.3% to S$7.79, buoyed by the Chinese data that may help ease concerns about sales.

Telecommunications firms were also among major gainers as their relative safety and higher yield potential prompted several analysts to make buy recommendations. Singapore Telecommunications gained 3% to S$3.47 while StarHub was up 2% at S$3.58.

City Developments added 2% to close at S$11.36, Global Logistic Properties gained 1.9% to close at S$2.19 while CapitaLand was up 1% at S$2.95, as investors interpreted GDP data may be less of a dampener on real estate sentiment.

Just to share.

STI so close to 3000 points! The overall sentiment is positive but investor cannot neglect the macro economic condition likes US and Europe economic data. My feeling is next week STI may protrude 3000 points with some excited investor bets their money on penny stocks. I have 70% confident this condition will happen, hence if STI penetrated 3000 points without any good basic; do not be excited.

Anyway, STI at uptrend now, what STI needs is good news from macroeconomic to firm up the 3000 points otherwise do not be excited for the penetration because its not going to stay long without any improvement from macroeconomic condition. Stay tune!

  

The worst is over?

HONG KONG : Despite recent signs of a slowdown in China, some economists believe that the worst is over for the world's number two economy.

According to economists at HSBC, fears of a hard landing for China have been overplayed.

Amid sluggish demand for exports from Western economies, growth in emerging markets such as China and Brazil lost steam in the second quarter of this year.

The HSBC Emerging Markets Index fell to 53 in the second quarter of 2012 from 53.6 the previous quarter.

But with a reading of 50 or above indicating economic expansion, HSBC is taking a positive look at the numbers.

Frederic Neumann, co-head of Asian Economics Research at HSBC, said: "Is there something happening in Asia that all growth rates are coming down? And the answer is yes. Our growth rates are coming down, we are not going to go back to the previous growth rates. But we are also not going to go back to a Japanese or European-style growth rate, we are going to be at a fairly comfortable pace." 

All eyes are on China, with weaker trade data out this week raising fears about a prolonged economic slowdown.

But HSBC said the worst is over for the world's second largest economy.

It believes that China's economic growth bottomed out in the second quarter, with 7.8 per cent year-on-year growth.

And it expects to see a pick-up in the second half of the year, taking full-year growth to 8.4 per cent.

Mr Neumann said: "Domestic demand is still expanding. Car sales, for example, have picked up. There is evidence that real estate market activity has started to pick up again the last few weeks. 

"So we absolutely do not think there is a risk of a hard landing in China. And we do think the Chinese authorities will do everything in their power to maintain growth at a reasonable speed."

HSBC expects China's central bank to announce another 200 basis-point cut in the reserve requirement ratio for banks before the end of the year.

As for the region as a whole, the lender is forecasting a 6.8 per cent expansion for Asia-ex Japan this year, and 7.5 per cent growth in 2013.

HSBC said the days of double-digit growth for regional economies are over, at least for the next five years. 

But economists said that a slower pace of growth is a good thing, as it will mean less volatility, especially for financial markets.


Source fromhttp://www.channelnewsasia.com

STI has remain uptrend for two weeks due to several good news like Europe crisis easing and not too worst US economic data. Now the expert believes the worst is over for China. Can STI boosted above 3000 points and create another uptrend wave? Now i start to believe it will happen soon. The world economic is not doing well, hence i will treat this as a short term uptrend wave. This can be a good chance to let go your unpleasant portfolio and re-structure it. if it happened, do not greedy, earn less, let go and standby your cash for the forthcoming downtrend; shopping at lower price is the best, keep your eyes on blue chips!

Market Summary 7 July 2012

Singapore's shares logged their eighth straight session of gains Friday as some investors took monetary policy easing in Europe and China as a sign that governments stand prepared to take steps to boost economic growth.

The 30-share Straits Times Index gained 0.2%, or 7.08 points, to close at 2,978.55. The benchmark had started the day in the red and sentiment stayed depressed for most of the session as investors were worried that policy makers are growing increasingly gloomy about growth. However, sentiment picked up toward the end of the session as investors continued to see value in the nation's stocks. The benchmark finished the week with a 3.5% gain.

Volume was lightly higher Friday, at 1.50 billion shares compared with 1.46 billion Thursday. Gainers outnumbered losers 238 to 137.

The European Central Bank's move to lower borrowing costs was widely anticipated by the market, but China rate cut Thursday came as something of a surprise. The moves "have in essence given traders a greater puzzle to solve in regards to whether being long, short or sidelined is the smart choice," said Tim Waterer, senior trader at CMC Markets, in a note.

Global markets now await U.S. non-farm payrolls data set to be released later in the global day, with economists expecting a gain of as many as 100,000 new jobs in June. The crucial jobs report is likely to hold clues about the possibility of a third round of quantitative easing by the U.S. Federal Reserve. "If we do see a soft payrolls number, how much heart the market takes from an increased likelihood of QE3 will be critical," said Waterer.

Some real-estate firms continued their winning streak Friday as lower interest rates are likely to boost sales. CapitaLand gained 2.8% to close at S$2.98, making it the biggest gainer on the benchmark, while CapitaMalls Asia added 0.3% to close at S$1.625.

DBS Bank gained 0.6% to close at S$14.09 after the government announced a banking cooperation agreement with China. Under the agreement, China will expedite processing of applications made by Singapore banks to establish branches and sub-branches in the country, according to a Singapore government statement. Implementation details will be worked out by the relevant financial agencies in Singapore and China in due course, the statement said, without naming any banks.

Golden Agri-Resources gained 1.4% to close at S$0.720 but other commodity suppliers were lower after gaining in recent sessions. Noble Group closed 1.3% lower at S$1.135 while Wilmar International lost 0.5% to close at S$3.66.