Bulls And Bears

S'pore shares higher on Wall Street strength

Biggest STI winners include Wilmar International and City Developments

Local shares climbed higher yesterday in the wake of yet another robust showing on Wall Street.

The benchmark Straits Times Index (STI) added 10.6 points, or 0.32 per cent, to 3,348.8, with a total of 1.35 billion shares worth $1.29 billion traded across the bourse.

The gains were in line with the Dow Jones Industrial Average's 0.33 per cent rise overnight, after tech giant Apple topped forecasts with a strong set of third-quarter results.

Other markets in the region were broadly higher as well: Tokyo rose 0.47 per cent and Hong Kong put on 0.24 per cent, although Shanghai slid 0.23 per cent.

Some of the biggest STI winners included palm-oil giant Wilmar International, up 2.4 per cent or eight cents to $3.44, and property group City Developments, which rose 1.1 per cent or 13 cents to $11.80.

A local remisier, who declined to be named, singled out the property sector as one to watch.

"Earlier in the year, everyone was still very dour on the sector. But for some reason, we have already witnessed the completion of seven enbloc deals, while recent new property launches have received very strong support from buyers,"he told The Straits Times.

"If this strength continues, we could see a resurgence in property prices, which will be good for developers even though the cooling measures are not pulled back. These are the green shoots that the property market needs."

Elsewhere, investment company K1 Ventures jumped 3.4 per cent or 2.5 cents to 75.5 cents, after it announced on Tuesday a 6.7 per cent growth in full-year net profit to $149.98 million.

OUE Hospitality Trust added 1.3 per cent or one cent to 77 cents, after reporting a higher distribution per stapled security of 1.21 cents for its second quarter on Tuesday.

OCBC analyst Deborah Ong said the trust's "spectacular" year-on- year DPU growth - at 31.5 per cent - is the highest posted by Singapore Reits under its coverage so far.

"Given the positive operational outlook as well as currently undemanding unit prices, we reiterate 'buy' on OUE Hospitality Trust as our top pick within the hospitality Reit sub-sector," said Ms Ong.

NeraTel shot up 4 per cent or 1.5 cents to 39 cents. The communications and network solutions provider said on Tuesday it has clinched a total of $14.9 million worth of new contracts in network and wireless infrastructure.

Venture Corporation received a query from Singapore Exchange after hitting an intra-day high of $13.84, before finishing at $13.83, up 4.7 per cent or 62 cents on the previous day's close. The company, due to release second-quarter earnings tomorrow, responded in the evening that it is not aware of any possible reason behind the trading.

Rowsley was again the day's top traded counter, sliding 2.6 per cent or 0.3 cents to 11.3 cents with 147 million shares changing hands.

A version of this article appeared in the print edition of The Straits Times on August 03, 2017, with the headline 'S'pore shares higher on Wall Street strength'. Print Edition | Subscribe