May 13, 2016

    STI shrugs off Wall St dip to break 2-day losing run

    SINGAPORE shares outperformed regional peers yesterday, snapping a two-day losing streak by gaining ground, even after an overnight slump on Wall Street and a poor showing from other Asian bourses.

    The benchmark Straits Times Index rose 12.52 points, or 0.46 per cent, to end the day at 2,745.39.

    Tokyo was another gainer in the region, rising 0.4 per cent.

    However, other major Asian bourses ended in the red. Hong Kong fell 0.7 per cent, Seoul dropped 0.13 per cent, Shanghai lost 0.04 per cent and Sydney slipped 0.24 per cent.

    Tim Schroeders, a Melbourne-based portfolio manager at Pengana Capital, told Bloomberg: "There's just enough out there to keep investors cautious.

    "We've got earnings disappointments and currency volatility so people are sitting back and waiting as opposed to continuing with the frenzy."

    Among the top actives at home was Yuuzoo, a social-media, e-commerce and entertainment company, whose stock has surged in the past week since announcing healthy first-quarter profits.

    However, the counter dropped 1.9 cents, or 9.5 per cent, yesterday after the company called for a trading halt in the morning. It announced that its auditors, from auditing firm Moore Stephens, had included a disclaimer of opinion in its finalised auditors' report on Yuuzoo's financial results for the financial year ended Dec 31, 2015.

    Noble Group was another actively traded stock yesterday as investors anticipated the release of its first-quarter numbers.

    The counter rose a cent to 36 cents, before the commodities firm said after the market closing that first-quarter profit had plunged 62 per cent, and that it has arranged two credit facilities totalling US$3 billion (S$4 billion).

    SingTel gained five cents to $3.89, after its launch on Wednesday of a new version of its mobile payment app Dash, as well as a SIM card that allows users to tap their phones to pay for bus and train rides.

    OCBC Investment Research said in a note yesterday that SingTel is likely to be the least affected by the entrance of a fourth telco here, and reiterated a "buy" call on the stock.