Singapore shares edged higher, lagging behind the regional market, as sluggish performance in industrial shares weighed on the index.
The benchmark Straits Times Index rose 0.4% to a one-week high of 3,248.44 points, while MSCI’s broadest index of Asia-Pacific shares outside Japan gained more than 1% on renewed confidence on China’s economic growth.
The FT ST Industrial Index was up just 0.1%, weighed by a 4% dip in SIA Engineering Co.
In other stocks, Tiger Airways Holdings fell as much as 3.2% in heavy trading to a 14-month low of $0.60, after the company posted weaker-than-expected quarterly results.
Broker CIMB downgraded the stock to “underperform” from “neutral” due to continued losses in Australia, Indonesia and the Philippines, and cut the target price to $0.60 from $0.62.
CIMB expected competition in Australia to hold back profit until fiscal 2017, highlighting the difficulty in securing more landing spots in Indonesia and the Philippines.
“As a result, we are not confident Tiger can turn these two cubs around anytime soon,” CIMB analyst Raymond Yap wrote in a research note, referring to the budget airline’s operation in Indonesia and the Philippines.
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