Singapore shares gained 0.47% by midday on Thursday, buoyed by strength in Asian bourses after the U.S. central bank indicated it would maintain monetary policy at supportive levels for some time.
Sembcorp Industries (SCIL.SI), a rig-building and utilities conglomerate, led gains among blue chips, rising 2.6% to $5.49 on expectations it could benefit from a strong pipeline of oil rig orders and as its valuations remained cheap, traders said.
“Sembcorp Industries is playing catch up after underperforming both Sembcorp Marine and Keppel. The worse is also over for the firm as its utilities operation is turning around,” said an analyst from a foreign brokerage.
Sembcorp Industries holds a majority stake in Sembcorp Marine, the world’s second largest oil rig builder.
By the midday break, the Straits Times Index (STI) <.FTSTI> was up 15.10 points at 3,197.78. The total value of shares traded in the morning session was $766.5 million, slightly higher than $753.4 million on Wednesday.
Traders said they expect the STI to be trapped in a range of 3,180 to 3,200 points in the afternoon.
In the near term, Liu said he expects equity markets to be driven by data, with investors keeping a close watch on first quarter advance U.S. GDP estimates and upcoming earnings from Singapore banks DBS Group (DBSM.SI) and United Overseas Bank (UOBH.SI).
Coal miner Straits Asia Resources (STRL.SI) jumped as much as 7.9% to a 33-month high after it said it was issued a license to mine in Indonesia.
Straits Asia said Indonesia’s minister of forestry has issued a borrow and use license to the firm for the Northern Leases at the Sebuku mines, allowing it to begin mining work.
The permit will allow Straits Asia to ramp up production at the Sebuku mines in Indonesia, DMG & Partners said.
By the lunchbreak its shares were 5.8% higher at $2.94 with 14.8 million shares changing hands.
Rubber firm GMG Global (GMGG.SI), which has plantations in Africa, rose 1.8% to $0.29 after it said its subsidiary had resumed operations at the Ivory Coast following a temporary halt after civil unrest erupted in the country.
Chinese shipbuilder Yangzijiang (YAZG.SI) shares also gained as much as 1% after it reported better-than-expected first quarter earnings due to strong gross margins.
Yangzijiang said its first quarter net profit rose 63% to 954.9 million yuan ($179.6 million), up from 586.4 million yuan a year ago.
“Order wins and higher revenue from productivity gains plus the strong first quarter results are expected to boost its share price,” said CIMB in a report.
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