Singapore shares rose for a third consecutive day on 18 October 2013, on course for a second week of gains, on quickening growth in China a day after US legislators sealed a last-minute deal to avoid a historic debt default.
China’s economy grew 7.8 percent in the third quarter, its fastest pace this year and in line with expectations, as firmer foreign and domestic demand lifted factory production and retail sales.
The benchmark Straits Times Index rose 0.2 percent to 3,193.62 by mid-day, in line with a 0.6 percent gain in MSCI’s broadest index of Asia-Pacific shares outside Japan.
Singapore Exchange (SGX) was the top performer on the index, jumping as much as 1.9 percent to $7.43, the highest in more than three weeks. SGX announced after market hours on Thursday a 24 percent rise in its first-quarter net profit, above analysts’ expectations.
Philips Securities said in a report it remains positive on SGX due to higher securities revenue forecast, new offerings in derivatives and attractive dividends with potential for an increase. It maintained a ‘buy’ rating and $7.90 target price on the stock.
Shares of Keppel Corporation rose as much as 0.8 percent to $10.90. On 17 October 2013, the world’s largest builder of offshore oil rigs posted a 32 percent rise in third-quarter net profit, helped by higher contributions from property.
“We continue to see good prospects in the O&M (offshore and marine) sector with the healthy rig demand and expect the group to continue with its Near Market, Near Customer strategy,” OCBC Investment Research said in a report. It maintained a ‘buy’ rating and target price of $12.87 on Keppel shares.