STI up 20 points in modest rebound
SINGAPORE shares yesterday rebounded modestly after recent falls.
The benchmark Straits Times Index (STI) rose 19.98 points or 0.66 per cent to close at 3,062.41, clawing back some of the 91.31 points lost in the previous three sessions.
There were lingering concerns over China's slowing growth and and a key US Federal Reserve policy meeting. But some fear was allayed after China trust-fund company China Credit Trust Co said on Monday that it had made a deal to restructure a troubled financial product.
The problems with the "shadow banking" firm had highlighted issues in the loosely regulated sector.
Mr Shane Oliver, AMP Capital's head of investment strategy, said that the recent falls in share markets worldwide "should be seen as a correction, rather than the start of a new bear market".
"While it makes sense to be cautious about emerging market shares generally, a re-run of the 1997 to 1998 Asian crisis is unlikely and emerging markets are unlikely to pose a major threat to global economic recovery."
STI gainers included commodities company Noble Group, which rose two cents or 2.1 per cent to 97 cents.
Outside the STI, lifestyle products company Osim International fell four cents or 1.7 per cent to $2.35.
Fourth-quarter net profit jumped 22.1 per cent to $27.6 million on the back of a 15.5 per cent rise in revenue to $178.6 million, the company said after Monday's close.
"Osim's fourth-quarter results met our expectations," said DMG & Partners Research.
"The revenue growth was attributed to healthy take-up rates of its products, particularly uInfinity and uAngel, as well as contributions from TWG Tea."
DMG said it remains positive on Osim as it is a proxy to the region's growing demand for lifestyle products. It has a "buy" call and $2.60 target price on Osim.
Nam Cheong climbed 1.5 cents or 4.9 per cent to 32 cents. The builder of offshore support vessels said before markets opened yesterday that it has won US$70 million (S$89 million) of contracts for the sale of five vessels.
"Nam Cheong also secured US$66 million worth of orders on Dec 30, and we believe this highlights the buoyant prospects in the offshore support vessel sector," said OCBC Investment Research.
"We maintain our 'buy' rating and 37-cent fair value on Nam Cheong."
Recently listed OUE Commercial Reit slipped half a cent, to 79.5 cents, on its second day of trade. It is a touch below its initial public offering price of 80 cents.