Bulls And Bears

Healthy gains in STI amid strong sentiment

Market buoyed by US Fed chair's statement, Wall St rise, S'pore economic growth data

Local equities continued to make strides yesterday as sentiment in the region stayed buoyant, thanks to United States Federal Reserve chair Janet Yellen's dovish statement.

The benchmark Straits Times Index (STI) advanced by 51.76 points, or 1.6 per cent, to 3,287.43 - its highest in about two years, and up 58.42 points or 1.8 per cent for the week.

A total of 1.97 billion shares worth $1.78 billion changed hands across the bourse. These gains came on the back of Wall Street's 0.1 per cent overnight rise, after Dr Yellen reiterated her stance that interest rates would be raised gradually.

Sentiment was also likely helped by economic growth numbers that showed Singapore dodged a recession.

Warehouse provider Global Logistic Properties made huge waves in the market, rocketing 21.9 per cent or 59 cents to $3.29 in heavy trade, after announcing that it has picked the $3.38 per share acquisition offer from a Chinese consortium.

United Engineers (UE), another takeover target, sank 1.5 per cent or four cents to $2.67, following news on Wednesday that a consortium led by Perennial Real Estate Holdings and Yanlord Land Group has bought a 33.5 per cent stake in the firm at $2.60 a share. The consortium plans to make a mandatory general offer for the rest of UE at the same price. Perennial gained 1.7 per cent or 1.5 cents to 90 cents, while Yanlord Land eased 0.6 per cent or one cent to $1.715.

OCBC Bank, one of the parties involved in selling the stake, rose 1.3 per cent or 14 cents to $11.05.

CapitaLand rose 1.7 per cent or six cents to $3.63. DBS Equity Research said in a report that its recently-announced move - to redevelop Golden Shoe Car Park into a mixed-use project for about $1.82 billion, along with CapitaLand Commercial Trust (CCT) and Mitsubishi Estate Co - is likely to benefit the group in the medium term.

"The deployment of capital to this low-risk redevelopment of Golden Shoe will support the longer-term ROE (return on equity) target of close to 8 per cent. This showcases the group's ability to consistently refresh its portfolio and unlock hidden value," it said, maintaining a "buy" call on both CapitaLand and CCT.

Outside of the blue chips, Alliance Mineral Assets requested a trading suspension in the morning, as it needed more time to provide updates on the Bald Hill Project in Western Australia. The counter last traded on Tuesday at 30 cents.

Disa was the most heavily traded stock, surging 7.1 per cent or 0.1 cent to 1.5 cents on 302.6 million shares done. Other actives included Sincap Group, which jumped 8.7 per cent or 0.2 cents to 2.5 cents.

Elsewhere in Asia, markets were marginally higher. Hong Kong extended gains with a 0.16 per cent increase, while Shanghai added 0.13 per cent and Tokyo climbed 0.09 per cent.

A version of this article appeared in the print edition of The Straits Times on July 15, 2017, with the headline 'Healthy gains in STI amid strong sentiment'. Print Edition | Subscribe