STI rebounds, may test year's highest point soon

STI rebounds, may test year's highest point soon

Singapore shares returned to positive territory after Tuesday's pause as the local bourse outperformed some regional markets.

The benchmark Straits Times Index (STI) closed up 26.2 points or 0.9 per cent at 2,945.74 yesterday, with 1.18 billion shares worth $1.13 billion transacted.

The local market performed better than some regional peers.

Shanghai slid 0.29 per cent as investors remained wary over the economic outlook.

Tokyo shed 0.25 per cent, owing to profit-taking after an extended run-up.

In the coming days, the STI may test the resistance level around 2,960, its highest point so far this year, remisier Desmond Leong told The Straits Times.

The momentum saw 21 of the 30 STI components close higher.

The top gainers included Hongkong Land Holdings, up 32 US cents or 5.19 per cent to US$6.48, and Thai Beverage, which rose 3.5 cents or 3.55 per cent to $1.02 on 52.2 million shares traded.

SingTel resumed its climb, adding six cents or 1.42 per cent to $4.30, close to its full-year high at $4.31.

Its blue-chip rival StarHub was close behind, rising five cents or 1.28 per cent to $3.96.

Wilmar International was the top loser among STI constituents, diving 19 cents or 5.67 per cent to $3.16 after announcing overnight it expects to book a second-quarter net loss of about US$230 million (S$310 million).

DBS analyst Ben Santoso has put his buy call and target price of $3.76 for Wilmar under review. "We estimate that Wilmar's net earnings in financial year 2016 would be US$802 million, representing a 26 per cent cut from our current estimate of US$1,085 million."

CapitaLand Commercial Trust dropped one cent or 0.64 per cent to $1.56.

It announced a 0.5 per cent rise in distribution per unit to 2.2 cents for the three months to June 30 due mostly to joint venture contribution. But revenue dropped 2.2 per cent due to lower occupancies.

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