Singapore shares outperformed regional bourses to rise 0.2% by the midday on Tuesday, lifted by gains in palm oil firm Wilmar International (WLIL.SI) on expectations it would benefit from higher sugar prices.
By the midday break, the Straits Times Index (STI) <.FTSTI> was up 6.52 points at 3,085.47. The total value of shares traded in the morning session was $511.2 million, slightly higher than $477.1 million on Monday. Regional stocks such as indices in Kuala Lumpur <.KLSE> and Jakarta <.JKSE> were trading lower.
By the midday break, the Straits Times Index (STI) <.FTSTI> was up 6.52 points at 3,085.47. The total value of shares traded in the morning session was $511.2 million, slightly higher than $477.1 million on Monday. Regional stocks such as indices in Kuala Lumpur <.KLSE> and Jakarta <.JKSE> were trading lower.
Gains in the STI are, however, expected to be limited due to ongoing uncertainties surrounding debt problems in the United States and Europe.
Local traders said they expected the STI to trade in a narrow 3,080-3,100 band in the afternoon.
“Although the U.S. will probably get their act together, the euro zone will still suffer a lot more,” said Tey Tze Ming, a market strategist at Saxo Capital Markets.
“I expect European sentiment to continue to be weak, so it’s likely stocks and the euro will head lower.”
Wilmar, the world’s largest listed palm oil firm, rose 1.8% to $5.75, with a volume of 6.9 million shares, making it the most actively traded stock by value in Singapore.
Investors were also hopeful that China may remove price limits on edible oils, traders said, which could help improve Wilmar’s earnings in future.
“Higher sugar prices are expected to benefit Wilmar in the coming few quarters following its acquisition of Sucrogen,” said a local trader.
JPMorgan also upgraded Wilmar to overweight from neutral and raised its target price to $6.50 from $5.40.
Shares of Chinese shipbuilder Yangzijiang (YAZG.SI) jumped 3.2% to $1.275 after it said it would report a first half net profit gain of at least 30%.
It also said in a statement it was on track to meet its delivery target of 65 vessels in 2011, compared with 50 in 2010, and that it had no immediate plans to issue convertible bonds.
Oil and gas services firm Ezra Holdings (EZRA.SI) rose 2.9%, on bargain-hunting and after it reiterated its orderbook for the subsea segment was on track to hit $1 billion.
Ezra said significant progress has been made in the integration of Norway’s Aker Marine Contractors (AMC).
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