Shares up strongly led by Keppel Corp; may rise more

Singapore shares rose on Friday to the highest intra-day level since June 1  as sentiment was boosted by the Greek rescue package and hopes for a U.S. debt deal, with rig builder Keppel Corp outperforming the market on better-than-expected quarterly results.

By the lunch break, the Straits Times Index (STI) <.FTSTI> was up 1%, or 31.07 points, at 3,169.58. The total volume of shares traded in the morning session was 884.8 million shares and turnover was $908 million.

The news on U.S. and Greece contributed a lot and Singapore corporate earnings so far have not been really disappointing, said Carmen Lee, head of OCBC Investment Research. 

 

A technical analyst said: “Current sentiment is quite bullish as the STI has gapped above its 200-day moving average resistance of 3,140 this morning. We would expect the STI to hover in the range of 3,160-3,170 after the mid-day break.”

 

Property stocks such as CapitaLand (CATL.SI) may be in focus in the afternoon following data from Singapore’s Urban Redevelopment Authority showing private home prices in the city-state were up 2% quarter-on-quarter.

 

Shares of Singapore’s Keppel Corp (KPLM.SI), the world’s largest oil rig builder, rose as much as 2.7% after reporting a better-than-expected rise in second-quarter net profit helped by margins from its offshore and marine business. 

 

At midday, the stock was up 2.5% at $11.09 on a volume of 5.5 million shares.

 

Singapore budget carrier Tiger Airways (TAHL.SI) rose as much as 4.1% after Morgan Stanley wrote that a decision allowing the firm to resume flying in Australia could come as early as next week, traders said. 

 

By the break, Tiger shares were 3.2% higher at $1.135 with 17.5 million shares changing hands, 3.7 times the average daily volume so far this year.

 

Shares of several Singapore construction firms rose on expectation of strong earnings and as analysts said valuations are looking attractive.

 

At midday, Yongnam Holdings (YNAM.SI) was up 3.8% on a volume of 22.1 million shares, 5.7 times the average daily volume so far this year.

 

Wee Hur (WHHL.SI) rose 3.6% and Tee International (TEEI.SI) advanced 3.5%.