Jul 08, 2014

    S'pore shares rally on strong US jobs data

    LOCAL shares rallied yesterday on the back of a Wall Street surge late last week ignited by unexpectedly strong jobs data from the United States.

    The Dow Jones Industrial Average and the benchmark S&P 500 surged to new highs on Thursday - Friday was a holiday - after the unemployment rate fell to its lowest level in almost six years.

    That momentum allowed the Straits Times Index to jump 19.32 points to 3,291.57 yesterday but turnover remained modest.

    Blue chips were among the big movers.

    UOB rose 22 cents, or 0.9 per cent, to $23.60; DBS jumped eight cents, or 0.5 per cent, to $17.16 and SingTel gained three cents, or 0.8 per cent, to $3.88.

    But reflecting punters' interest, which is still heavily vested in the Fifa World Cup in Brazil, the Singapore bourse's turnover remained paltry at just $668 million yesterday.

    Global Yellow Pages (GYP), was among the top five volume stocks, adding 0.3 cent, or 5.9 per cent, to 5.4 cents.

    The rise was a rebound after the stock fell 7.3 per cent to 5.1 cents on Friday on news that a deal to buy Australia's Gloria Jean's Coffees had suddenly collapsed. About 58.4 million shares were traded yesterday.

    The net proceeds from a rights issue GYP had run to pay for the acquisition will now go to fund future acquisitions.

    Meanwhile, Global Premium Hotels received a Trade with Caution notice from the Singapore Exchange regarding "the substantial increase in its share price by 20.3 per cent" yesterday.

    In response to the SGX query, the company said it was not aware of any reasons that could possibly explain the trading in its securities.

    Global Premium Hotels closed at 39 cents, up 13 per cent, or 4.5 cents, with 7.8 million shares changing hands.