Asian Economic News
Singapore Shares May Open Higher
9/8/2009 7:51 PM ET
(RTTNews) -
The Singapore stock market has closed higher now in four consecutive sessions, gathering more than 100 points or 4 percent along the way. The Straits Times Index closed above the 2,660-point plateau, and now analysts are predicting that the market will add modestly to those totals at the opening of trade on Wednesday.
The global forecast for the Asian markets features a touch of upside, with strength among the commodity markets - oil, in particular - expected to support the regional bourses. Steel stocks also are expected to rise, although perceived weakness among the financials is forecast to limit the gains. The European and U.S. markets finished modestly higher, and the Asian markets are also tipped to trend to the upside.
The STI finished modestly higher on Tuesday, fueled by gains among the commodities and property stocks.
For the day, the index collected 16.96 points or 0.64 percent to finish at 2,660.91 after trading between 2,625.75 and 2,663.14. Volume was 2.65 billion shares worth 1.97 billion Singapore dollars. There were 341 gainers and 216 decliners, with 700 stocks finishing unchanged.
Among the actives, Olam International, Noble Group, Singapore Airlines and CapitaLand all finished higher, while Singapore Telecom bucked the trend to finish lower.
The lead from Wall Street is cautiously optimistic as stocks saw moderate strength on Tuesday, with recent economic optimism generating some buying interest on a light day on the economic front. The major averages all closed in positive territory, extending their gains for a third straight session.
In corporate news, candy maker Cadbury (CBY) rejected a $16.7 billion takeover offer from packaged food giant Kraft Foods Inc. (KFT), saying that the proposal fundamentally undervalued the company and its prospects. Despite the outright rejection by Cadbury, Kraft Foods reiterated that it would pursue the takeover by maintaining a constructive dialogue and further the merger process.
IBM (IBM) reiterated that it expects full year 2009 earnings of at least $9.70 per share. The technology giant also said that it was "well ahead" on its plan to achieve full year 2010 earnings of $10 to $11 per share.
Meanwhile, Smithfield Foods (SFD), a fresh pork and packaged meats processor, reported a wider net loss for the first quarter, as sales declined from the previous year due to lower volumes, currency fluctuations and a decline in fresh pork selling prices. The stock closed down by 2.6 percent.
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