S'pore shares rebound 0.66%

SINGAPORE shares on Tuesday rebounded modestly after their recent falls.

The benchmark Straits Times Index (STI) was up 19.98 points or 0.66 per cent to 3,062.41, clawing back some of the 91.31-point loss in the previous three sessions.

There were lingering concerns over China's slowing growth and as the United States Federal Reserve geared up for a policy meeting.

But some fear was lifted after China trust fund company China Credit Trust Co said on Monday that it had made a deal to restructure a troubled financial product that it earlier sold.

The problems with the "shadow banking" firm had highlighted the issues with the loosely-regulated sector.

Mr Shane Oliver, AMP Capital's head of investment strategy, said that the recent falls in share markets worldwide "should be seen as a correction, rather than the start of a new bear market".

"While it makes sense to be cautious about emerging market shares generally, a re-run of the 1997 to 1998 Asian crisis is unlikely and emerging markets are unlikely to pose a major threat to global economic recovery," he said.

STI gainers included commodities company Noble Group, up two cents or 2.1 per cent to 97 cents.