STI inches up led by property stocks

PHOTO: STI inches up led by property stocks

Singapore shares edged higher, following gains in global equity markets, led by a rebound in property stocks as investors picked up bargains.

Singapore's benchmark Strait Times Index rose 0.3 per cent to 3,243.41 points by 0450 GMT, tracking a 0.7 per cent rise in Asian shares ex-Japan.

Property firm CapitaLand Ltd topped the index with a 2.2 per cent rise, followed by Keppel Corp Ltd which rose 1.5 per cent. CapitalMall Trust and City Developments Ltd were up 1 per cent and 0.8 per cent respectively.

"Despite all the government cooling measures, everything seems okay," said a Singapore-based trader, "In addition, property firms' shares prices had gone down a lot and some investors are hunting for bargains."

CapitaLand, Southeast Asia's biggest developer, reported a slight fall in its second-quarter net profit late last month. Its share price hit a more than two-week low of S$3.18 on Monday before recovering to S$3.26.

Shares in palm oil firm Bumitama Agri Ltd fell 2.6 per cent to S$0.945, on course for the biggest daily drop in more than two weeks, after the company reported a 19.2 per cent decline in second-quarter net profit.