JP Morgan AM says Singapore investors more upbeat vs 6, 12 mths ago

SINGAPORE - Singapore investors are more upbeat than they were six and 12 months, according to a survey by J.P. Morgan Asset Management, in a sign the rally in the city-state's stock market may continue in coming months.

The Straits Times Index has gained 1.5 per cent since the start of the year, boosted by the US government's last-minute deal to avoid a so-called fiscal cliff and signs of a pick-up in China. The STI rose nearly 20 per cent last year.

The J.P. Morgan confidence index, taken every six months, stands at 106, up from 101 in the previous survey and 86 last year. A reading above 100 shows investors are optimistic, while a reading below that level indicates pessimism.

"This is no doubt influenced by the progress we have seen over the past six months where the risk of a financial meltdown in Europe is largely reduced," Andrew Creber, J.P. Morgan Asset Management's head of Singapore business, said in a statement.