Singapore shares
closed at a more than two-year high on Friday after stronger economic data in
the world's two biggest economies boosted sentiment.
The Straits Times Index closed 0.6%, or 20.92 points, higher at 3,269.31, its highest intraday level. That was also the highest since Jan. 6, 2011. Volumes were lower at 3.13 billion shares compared with 3.62 billion on Thursday. Gainers outnumbered losers 296 to 174.
The local market was helped by signs of stronger manufacturing activity in China after the preliminary HSBC Manufacturing Purchasing Managers Index rose in January. It was also buoyed by falling applications for jobless benefits amongst U.S. workers to 330,000, the lowest level in five years, according to a U.S. Labor Department report published Thursday.
Singapore's industrial output fell less than expected in December, as a boost in production of drugs and medical devices helped offset another slow showing in electronics. Factory output was down 0.6% from a year earlier, the Singapore Economic Development Board said Friday, not nearly as steep a fall as economists expected.
OCBC Investment Research analyst Carey Wong said there are signs of inflows into equities from fixed income products as some investors shift into a risk-on posture. "There's some sense that perhaps interest rates [will] rise sooner than expected, and some in the market are preempting that by switching out of bonds into stocks," he said.
Wilmar International was the top performing stock as investors were likely attracted to the commodities supplier that gets a large part of its revenue from China. Shares rose 3.8% to close at S$3.84. Olam International added 0.9% to close at S$1.63 while Noble Group ended the day with a 0.8% gain at S$1.225 amid signs of an improving global economy.
Real estate stocks that were battered by a new set of property cooling measures announced by Singapore earlier this month, were also among prominent gainers. CapitaLand advanced 1.0% to S$3.98 and City Developments gained 0.4% to S$11.30.
Singapore Telecommunications, considered a safer stock because of the stable nature of its business, fell 0.6% to S$3.45.
The Straits Times Index closed 0.6%, or 20.92 points, higher at 3,269.31, its highest intraday level. That was also the highest since Jan. 6, 2011. Volumes were lower at 3.13 billion shares compared with 3.62 billion on Thursday. Gainers outnumbered losers 296 to 174.
The local market was helped by signs of stronger manufacturing activity in China after the preliminary HSBC Manufacturing Purchasing Managers Index rose in January. It was also buoyed by falling applications for jobless benefits amongst U.S. workers to 330,000, the lowest level in five years, according to a U.S. Labor Department report published Thursday.
Singapore's industrial output fell less than expected in December, as a boost in production of drugs and medical devices helped offset another slow showing in electronics. Factory output was down 0.6% from a year earlier, the Singapore Economic Development Board said Friday, not nearly as steep a fall as economists expected.
OCBC Investment Research analyst Carey Wong said there are signs of inflows into equities from fixed income products as some investors shift into a risk-on posture. "There's some sense that perhaps interest rates [will] rise sooner than expected, and some in the market are preempting that by switching out of bonds into stocks," he said.
Wilmar International was the top performing stock as investors were likely attracted to the commodities supplier that gets a large part of its revenue from China. Shares rose 3.8% to close at S$3.84. Olam International added 0.9% to close at S$1.63 while Noble Group ended the day with a 0.8% gain at S$1.225 amid signs of an improving global economy.
Real estate stocks that were battered by a new set of property cooling measures announced by Singapore earlier this month, were also among prominent gainers. CapitaLand advanced 1.0% to S$3.98 and City Developments gained 0.4% to S$11.30.
Singapore Telecommunications, considered a safer stock because of the stable nature of its business, fell 0.6% to S$3.45.
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