Shares up at midday on earnings; Straits Asia outperforms

Singapore shares rose by midday on Wednesday after several companies reported encouraging earnings and Wall Street posted gains overnight, buoyed by strong results from chip maker Intel Corp (INTC.0).

By the midday break, the Straits Times Index (STI) <.FTSTI> was up 0.42%, or 13.12 points, at 3,138.49. The total value of shares traded in the morning session was $732.6 million, slightly higher than S$705.5 million on Tuesday.

Local traders said the STI may trade between 3,120 and 3,150 points in the afternoon.

 

“Overall, most of the results so far have met expectations. If you look at Keppel Land, for example, there are really not much surprises,” said Carmen Lee, head of research at OCBC Investment Research.

 

Lee also said that the Singapore general election, which will be on May 7 — about eight months ahead of schedule — is unlikely to have much impact on the stock market. 

 

“The consensus view is that the PAP (People’s Action Party) will still return to power, it’s just that the%age may come off a little bit from the previous round,” she said.

 

Singapore property developer Keppel Land (KLAN.SI) said its first-quarter net profit rose 46% year-on-year, lifted by higher contributions from property trading and its unit K-REIT Asia, as well as gains from selling its stake in Keppel Digihub. 

 

The stock rose as much as 1.6% but at midday was up only 0.9% at $4.40 on a volume of 1.7 million shares.

 

Shares of Singapore-listed coal miner Straits Asia Resources (STRL.SI) rose as much as 3.9% after reporting a 269% year-on-year surge in its first quarter net profit on higher production volumes and stronger coal prices. 

 

By the break, Straits Asia shares gained 3.5% at $2.65 on a volume of 6.4 million shares.