Singapore shares open firmer on bargain-hunting

Singapore shares open firmer on bargain-hunting

	Published : Tue, 11 Sep 2007 03:32 By : Agencies Print this Story

SINGAPORE (Thomson Financial) - Singapore shares opened firmer Tuesday on bargain-hunting after yesterday's falls, but gains were capped as the market awaits the outcome of the Federal Reserve's policy meeting on September 18.

While most investors expect a rate cut, many are hoping for a reduction of as much as 50 basis points to help the US economy avoid a recession induced by housing and credit market weakness.

Fears of a recession resurfaced after the US Labor Department said Friday that non-farm payrolls dropped for the first time in four years in August.

At 10.00 am (0200 GMT), the Straits Times Index was up 27.29 points or 0.8 percent at 3,469.16.

Gainers led losers 370 to 111, with 171 shares unchanged.

There were 900.99 million shares traded worth 451.72 million Singapore dollars.

Besides the September 18 Fed meeting, investors are looking forward to the release of the US August retail sales and September consumer sentiment data, both due on Friday, for further clues about the health of the US economy, DMG & Partners dealing director Gabriel Yap said.

Despite slowing economic growth in the US, Yap said Asia looks resilient, bolstered by strong growth, particularly in China.

'Markets here can withstand the (financial market) rout better than the rest of the world (given) Asia's contribution to the global economy,' Yap said.

City Developments rose 10 cents to 15.10 dollars after it and partners Istithmar of Dubai and US-based Elad Properties won the bidding for a commercial site right next to Singapore's Raffles Hotel. It is paying the government 1.69 billion dollars for the 34,959-square-meter site, which will be developed into an office and hotel complex.

Keppel Land added 5 cents to 7.75 dollars after partnering with Saudi Economic and Development Co Ltd to develop upmarket residences in Jeddah, Saudi Arabia, at a total investment cost of about 760 million dollars.

Other property stocks were higher, with Wing Tai up 6 cents at 3.44 dollars and CapitaLand up 5 cents at 7.55 dollars.

Banking shares rebounded from yesterday's sell-off, with United Overseas Bank up 20 cents at 21.30 dollars, Oversea-Chinese Banking Corp up 10 cents at 8.65 dollars and DBS Group up 20 cents at 20.10 dollars.

Shipyard and ship chartering company Labroy Marine extended its gains, adding 9 cents to 2.27 dollars. Other shipyards were higher, with Keppel Corp up 20 cents at 13.20 dollars, SembCorp Marine up 8 cents at 4.50 dollars and Cosco Singapore up 10 cents at 5.35 dollars.

(1 US dollar = 1.52 Singapore dollars)

TFN.Singapore@thomson.com

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