By PNA / Xinhua and U.S. News Agency / Asian
Singapore shares closed 0.3 percent higher Tuesday, as investors were treading carefully amid a paucity of fresh factors.
Trading on the U.S. stock and bond markets were suspended overnight as Hurricane Sandy began to batter the U.S. East Coast.
Meanwhile, debt-laden Italy was experiencing political jitters, and bailout outlook for struggling Spain and Greece continued to be uncertain. A threat by former Italian Prime Minister Silvio Berlusconi to withdraw support for Mario Monti’s government pushed Italian and Spanish bond yields higher.
OCBC Investment Research forecast the Straits Times Index to find immediate support at 3,020 points and then 3,000. Resistance is likely at the 3,070 and 3,080 levels. 3,100 points at this juncture look unlikely to be reached.
SIAS Research said, “we expect the Straits Times Index to gain marginally on short-covering to test its immediate resistance level of 3,058 points first before continuing its decline.”
The benchmark Straits Times Index rebounded 9.12 points, or 0.3 percent, to close at 3,038.73. Trading volume was 1.76 billion shares worth 1.11 billion Singapore dollars (909.8 million U.S. dollars). Decliners outnumbered advancers 236 to 136, while 591 stocks closed unchanged.
CapitaLand Limited ended flat at 3.27 Singapore dollars. Southeast Asia’s largest property developer said its third-quarter net profit rose 85.1 percent, boosted by higher operating income and portfolio gains. AmFraser Securities Research maintained “Buy” rating with fair value of 3.64 Singapore dollars, citing better fourth quarter earning expected in view of higher China residential profit recognition.
Singapore Airlines rose 0.6 percent to close at 10.60 Singapore dollars. Virgin Australia Holdings Limited, Australia’s second- ranked airline, said alliance partner Singapore Airlines will buy a 10 percent stake in it for 108 million U.S. dollars to help it compete with larger rival Qantas.
Among the top gainers, Jardine Matheson rose 2.2 percent to close at 62.4 U.S. dollars, whereas Jardine Cycle and Carriage became one of the top losers by falling 1.1 percent to end at 49. 10 Singapore dollars. (1 U.S. dollar = 1.22 Singapore dollars)