STI gains on rise in oil prices, Wall St
SINGAPORE shares enjoyed a slight rebound yesterday ahead of the long-anticipated rise in United States interest rates thanks to a rebound on Wall Street and in oil prices.
The Straits Times Index closed 0.9 per cent or 25.40 points up at 2,840.92.
"It's a welcome relief rally after a very depressing week. The market is betting on a small rate hike," remisier Alvin Yong said.
Wall Street climbed 0.9 per cent while Brent was up 1.29 per cent, at US$38.41 a barrel, while West Texas Intermediate settled at US$37.35 a barrel, up 2.86 per cent.
Noble Group was the most actively traded counter, jumping 7.7 per cent or three cents to 42 cents, with 67.6 million shares traded.
The firm said on Tuesday that it is in talks to sell its 49 per cent stake in Noble Agri to China's food giant Cofco for around US$700 million (S$987 million) to US$750 million.
Cofco acquired 51 per cent of Singapore-listed Noble's agriculture unit in April last year for US$1.5 billion.
The rebound in oil lifted energy-related plays, including Keppel Corp, which jumped 2.1 per cent or 13 cents to $6.42.
Ezion rose 5.3 per cent or three cents to 60 cents while Ezra gained 1.1 per cent or 0.1 cent to 9.6 cents and Rex International climbed 1.1 per cent or 0.1 cent to 8.8 cents.
Neptune Orient Lines (NOL) edged up 0.4 per cent or 0.5 cent to $1.23, with 27 million shares traded yesterday.
French shipping line CMA CGM, which is offering to take over Singapore's container shipping firm NOL for US$2.4 billion, has been buying NOL shares on the open market.
Property giant City Developments (CDL) jumped 6.1 per cent or 44 cents to $7.68, following news it has structured an investment deal to unlock about $1.1 billion from its real estate assets. This is CDL's second such deal in 12 months. It is similar to a deal involving its Sentosa Cove properties about a year ago that helped it raise $1.5 billion.
DBS Group Research maintained a buy call, noting that the deal "enables the group to tap third-party capital to extract shareholder value on its balance sheet".
OCBC Investment Research likes the new finance structure but has a hold call on CDL, citing the slow domestic property market.