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.
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