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 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.
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.
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