Singapore shares were slightly higher by midday, as investors stayed cautious ahead of fresh U.S. economic data and a European Central Bank policy meeting later in the day.
By 1:45 p.m., the benchmark Straits Times Index was up 0.03% or 0.85 points at 3,077.99. The MSCI index of Asia-Pacific shares outside Japan erased earlier losses to edge up 0.3%. Later on Thursday, weekly jobless claims and U.S. factory orders for August will be released.
Vanguard Group, the largest U.S. mutual fund company, has dropped MSCI as a benchmark provider and switched to tracking the FTSE Group’s benchmarks for some of its index funds.
The move will negatively affect Singapore banks such as DBS Group Holdings, as their weightings are smaller in the FTSE, as well as oil rig builder Keppel Corp and Singapore Telecommunications, DBS Vickers said.
However, it added that CapitaCommercial Trust, Venture Corp, Singapore Post and SMRT Corp, will likely benefit as they are FTSE component stocks but not included in the MSCI Singapore Index.
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