Singapore shares rebounded from the previous day's fall after
Wall Street rallied on better-than-expected retail sales and a
drop in weekly jobless benefit claims in the United States, but
analysts expect some near-term weakness.
The Straits Times Index rose 0.8 percent to
3,156.64 points, after closing 0.7 percent lower on Thursday.
MSCI's broadest index of Asia-Pacific shares outside Japan
was 1.3 percent higher.
Shares of Singapore Technologies Engineering,
Golden Agri-Resources and ComfortDelGro Corp
all gained more than 2.5 percent.
Standard Chartered said Asian equity and bond markets have
been particularly weak over the last few weeks, hit by
increasing fears that the U.S. Federal Reserve will start
tapering off its quantitative easing programme and the continued
weakness of the Chinese economy.
While some of the previously top-performing equity markets
such as the Philippines, Thailand and Indonesia have been the
worst-hit, the sell-off has been "reasonably broad-based", with
Taiwan and Malaysia the least affected, Standard Chartered said.
It also said China and South Korea, two of the cheaper
markets in Asia, are both down over 12 percent from their peaks.
"While there are some signs of stabilisation in Asian
economic data, we believe there is the risk of further
short-term disappointments and this may lead to further equity
market weakness in the near term," it said, preferring developed
equity markets to their emerging counterparts.
10:59 STOCKS NEWS SINGAPORE-OCBC cuts CDL Hospitality
target, keeps 'hold'
OCBC Investment Research lowered its target price on
Singapore's CDL Hospitality Trusts to S$1.79 from
S$2.05 but kept its 'hold' rating, citing weaker revenue per
available room (RevPAR) projections in Singapore.
CDL units were up 0.55 percent at S$1.83 versus a 0.8
percent gain in the benchmark Straits Times Index on
Friday. The stock has fallen about 3 percent so far this year.
From January to April, RevPAR for Singapore hotels fell 2.6
percent from a year earlier to S$218 ($170), OCBC said, adding
visitor arrivals are converting into fewer room nights on a per
OCBC forecast hotel room demand growth of 5.4 percent per
year from 2013 to 2015, lower than the projected 5.8 percent per
annum increase in room supply.
"Concerned with an oversupply situation building up in the
hospitality market and generally weak performance of the
industry year-to-date, we are lowering our FY13 RevPAR growth
assumption for CDLHT's Singapore hotels from 0% to -5%," OCBC