STI rose 0.1% to 2,990.51 points by midday

Singapore shares edged higher by midday and are set to see their first weekly gain in nearly one month, as manufacturing surveys from China and the United States boosted confidence of a brighter growth outlook.

As of 12:54p.m., the Straits Times Index rose 0.1% to 2,990.51 points, while the MSCI’s broadest index of Asia Pacific shares outside Japan gained 0.5%.

Global Logistic Properties, which is the largest warehouse operator in China, was the largest gainer on the STI, rising 2.8% to $2.55.

However, commodity trader Olam International bucked the broader market to fall 2.1% to S$1.65, extending its losses after short-seller Muddy Waters earlier this week criticised the company for its accounting practices and debt levels.

DBS Vickers recommended buying StarHub shares, its top pick in the Singapore telecommunications sector, which will benefit from falling smartphone prices. StarHub gained 1.4% to $3.63, and has a dividend yield of 5.6%.

StarHub has a lower subsidy burden from Android phones and the company is managing its traffic costs better than its peers, DBS said.