Singapore shares rose slightly on Thursday as traders scooped up stocks that had been battered, but overall sentiment remained muted due to the weakening global economy.
At 1:00 p.m., the Straits Times Index (STI) <.FTSTI> was up 0.05%, or 1.44 points, at 2886.70. Just over 1.3 billion shares worth about $1.1 billion had been traded by that time, compared with 1.16 billion shares worth $1.19 billion as at 1:00 p.m. on Wednesday.
“The recent spike up in the markets is probably a technical bounce. If you look at the U.S. economy, we are still seeing a lot of weaknesses in terms of consumer sentiment and job creation,” said Andrew Chow, head of research at UOB Kay Hian.
RBS said in a report that the risk of a global recession was increasing, indicating Asian shares could face another 15-20% downside potential if economic growth turned negative.
Shares of Singapore’s Global Logistic Properties (GLPL.SI) jumped as much as 5.4% after announcing it has formed a joint venture with Canada Pension Plan Investment Board to develop logistic facilities in Japan.
At around 1:00 p.m., GLP shares were up 5.1% at $1.755 on a volume of 12.4 million shares, around 1.4 times the average daily volume in the last 30 days.
Other gainers included casino operator Genting Singapore (GENS.SI) and commodities firm Noble Group (NOBG.SI), which advanced around 1.5% each.
Shares of Singapore supermarket chain Sheng Siong (SHEN.SI) fell as much as 16% in heavy trade, as some investors took profit after the strong run-up since its initial public offering.
At around 1:00 p.m., Sheng Siong shares were down 8.9% at $0.51 with around 192 million shares changing hands — making it the most actively traded stock by volume.
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