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.
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