Bulls And Bears

STI up on first trading day of new quarter

Analysts note 'trigger points' in week ahead, including release of Fed meeting's minutes

Singapore shares started the first trading day of April on a solid footing after a stellar first quarter.

The benchmark Straits Times Index (STI) advanced 12.4 points or 0.39 per cent to 3,187.51 yesterday, although turnover across the bourse amounted to just 1.6 billion shares worth $1.06 billion.

This cautious sentiment was likely in line with the 0.31 per cent loss on Wall Street last Friday.

The more muted performance here came after the blue-chip index had a good run over the past three months, gaining 10.2 per cent since the start of the year.

But as Mr Nicholas Teo, trading strategist at KGI Securities (Singapore), noted: "Whether the strength behind the first-quarter market's performance represents the green shoots of a recovering global economy or nothing more than a false dawn does not matter for traders.

"What matters mostly will be how one perceives the action expected going forward. And more importantly, how one should be positioned accordingly for it."

Mr Teo said the rest of the week will have "plenty of trigger points". For instance, the US Federal Reserve is due to release its March meeting minutes early on Thursday Singapore time, while March payroll numbers will be out at the end of the week.

Gainers on the STI included Yangzijiang Shipbuilding, which jumped 3.1 per cent or 3.5 cents to $1.165 after the group said in the morning that it had won 13 contracts worth US$318 million (S$444 million) for the first quarter.

Singapore Airlines rose 2.3 per cent or 23 cents to $10.30, and CapitaLand put on 1.1 per cent or four cents to $3.67.

Outside of the index, Tee International surged 9.9 per cent or 1.9 cents to 21 cents. The company announced over the weekend that chief executive Phua Chian Kin is offering 21.5 cents or new equity per share to take the company private.

China Everbright Water, which on Friday said it had won the bid for a 3.1 billion yuan (S$630 million) project in China's Shandong province, rose 7.4 per cent or 3.5 cents to 51 cents. A DBS Equity Research report noted the group's significant improvement in deal flow should "bring about robust growth in construction revenue". It kept a "buy" call on the stock with a target price of 64 cents.

Dyna-Mac Holdings sank 3.8 per cent or 0.7 cent to 17.5 cents. The oil services provider on Friday said its independent auditor's report noted its "low order book and the uncertainty over the availability and timing of award of new contracts which may cast significant doubt on the ability of the group to continue as a going concern".

ISR Capital was the most heavily traded counter, finishing flat at 0.7 cent on 207.6 million shares done.

Elsewhere in the region, Hong Kong rose 0.62 per cent, Tokyo put on 0.39 per cent and Jakarta added 0.69 per cent. Shanghai was closed.

A version of this article appeared in the print edition of The Straits Times on April 04, 2017, with the headline 'STI up on first trading day of new quarter'. Print Edition | Subscribe