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STOCKS NEWS SINGAPORE-Index rises on positive China data

Source : REUTERS
Last Updated: Thu, Jan 10, 2013 04:10 hrs

Singapore's main index extended its gains for a second straight day, as stronger-than-expected Chinese trade data buoyed investor confidence.

The benchmark Straits Times Index was up 0.3 percent at 3,230.86 while the MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.7 percent.

CapitaLand Ltd, which develops properties in Singapore and China, climbed 2.1 percent to S$3.94, more than a two-year high, on optimism that property demand will remain strong in its key markets despite government efforts to curb rising home prices.

DBS Vickers said the current liquidity-driven rally was likely triggered by funds flow from the bond market into stocks as risk aversion subsided.

So far this year, the average daily value of shares traded was S$1.6 billion, 25 percent higher than 2012's daily average, which could benefit Singapore Exchange Ltd, DBS noted.

"While it's still early days into the New Year, the liquidity inflow may continue as the China recovery story continues to pan out in the first half," the brokerage said.

China's exports grew 14.1 percent in December from a year ago to hit a seven-month peak, exceeding market expectations for a 4 percent rise, imports grew 6 percent on the year, double the forecast. This boosted the country's trade surplus to $31.6 billion in December, from a surplus of $19.6 billion in November, and sharply above a forecast of $19.7 billion.

1150 (0350 GMT)




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