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.
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.
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