ST Index rises 0.7% on rosy data

PHOTO: ST Index rises 0.7% on rosy data

Singapore shares continued their newfound winning streak on the back of data showing the United States grew a faster-than-expected 4.1 per cent in the third quarter.

There was more Christmas cheer when the International Monetary Fund (IMF) raised its outlook for the world's largest economy.

The brighter mood sent the Singapore's benchmark Straits Times Index up 21.74 points, or 0.7 per cent, to close at 3,116.22.

Hong Kong gained 0.48 per cent, Shanghai added 0.24 per cent, Sydney climbed 0.51 per cent and Seoul rose 0.68 per cent. Tokyo was closed for a public holiday.

"The economic recovery in the US is at a level we haven't seen in a long time and the IMF's improved outlook on the world's biggest economy is boosting markets," said Mr Heo Pil Seok, the chief executive officer of Midas International Asset Management in Seoul.

DMG & Partners Research added in a note on Monday that while Singapore shares seemed to have lost their shine over the past few years, the new year will likely be an exciting one for the market as valuations are inexpensive.

"Compared to the US and ASEAN markets, the country's stock market was the worst performing by a mile over the last three years. However, things are about to change next year as we expect Singapore to make a comeback," the brokerage wrote.

CapitaLand gained two cents to $2.98, while Ascott Real Estate Investment Trust slipped half a cent to $1.185.

Ascott announced on Monday that it has entered into an agreement to acquire New Cairnhill Serviced Residence in Singapore.

Ying Li International Real Estate was unchanged at 39.5 cents.

The firm said last week that its new mall in Chongqing, China, received 100,000 shoppers when it opened last Friday and now has 76 per cent tenant occupancy.

Swissco Holdings dropped 1.5 cents to 36 cents. The firm said last Friday that it had secured three charter contracts worth $15.2 million in total, for its offshore support vessels.

Lian Beng Group was flat at 52.5 cents.

The firm said on Monday that it has completed its acquisition of Associated KHL Industries, an investment holding company that owns a property at 2 Penjuru Close.

The property firm had said last week it planned to buy Associated KHL for $3,945,643 as owning the Penjuru Close property would give it more space for storage and to expand its construction and engineering works and services.

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