Singapore shares book gains, in tandem with regional bourses

SINGAPORE - Singapore stocks posted gains on Monday, taking their cue from counterpart markets in the Asia-Pacific region, as well as a smaller-than-expected decline in exports.

The Straits Times Index (STI) rose 0.5 per cent, or 16.6 points, to 3,319.26 points.

Asia-Pacific indexes closed higher, after China’s central bank decided not to change the one-year medium-term lending facility rate. The decision fuelled optimism among market watchers that the first-quarter economic output of the world’s second-largest economy “won’t be too bad”.

In Singapore, non-oil domestic exports (Nodx) contracted for the sixth consecutive month in March, down 8.3 per cent year on year, but the drop was less than what the market expected. On a seasonally adjusted monthly basis, Nodx jumped 18.4 per cent.

Keppel Corporation was the top performer on the STI, jumping 2.5 per cent to $6.05. This came after the conglomerate

expressed hope that

the

monetisation of its legacy rigs can take place sooner,

leading to an earlier repayment on $4.25 billion worth of vendor notes that it was issued.

DBS Group Research has reinstated coverage on the counter with a “buy” call and a target price of $8.30, noting the company’s rise as a global asset manager with developer and operator capabilities.

Mapletree Pan Asia Commercial Trust closed 1.1 per cent up at $1.84, making it the top performer among real estate investment trusts.

In the broader market, gainers beat decliners 306 to 261 on a trading turnover of 1.2 billion securities worth a total of $803.9 million.

Sembcorp Marine was the most traded counter with some 222.5 million shares transacted, but closed unchanged at 11.8 cents. The company has become a candidate for inclusion in the STI, as its market cap has risen post-merger.

THE BUSINESS TIMES