Singapore - Singapore Stocks-Up by midday; eyes on budget announcement

Singapore shares were higher at midday on Friday on the back of encouraging economic data from the United States and Greek bailout hopes, and local investors are now awaiting the city-state's budget announcement for further cues.

The Singapore government's budget is expected to help its citizens cope with rising costs, but businesses may be hit by new measures that will make it harder for them to hire cheap foreign workers.

"Stocks in certain sectors such as tourism and healthcare may benefit from the budget initiatives," stockbroker DMG & Partners said in a report.

By 0500 GMT, the Straits Times Index (STI) was up 0.4 percent, or 11.14 points, at 2,988.34. Some 918 million shares worth S$762.8 million were traded. The STI has risen around one percent since the start of the week and nearly 13 percent since the start of 2012.

Commodities firm Noble Group Ltd and Southeast Asia's largest bank DBS Group Holdings were among the top gainers among blue chips, rising 1.7 percent and 1.5 percent, respectively.

Asian shares rebounded on Friday on signs euro zone officials will soon approve a long-awaited bailout for Greece, reducing the risk of a debt default, and after jobs and manufacturing data pointed to a healthier U.S. economy.

"The Singapore market right now is very headline-driven. What has pushed the STI above the 3,000 level is partly due to the events in Europe," said Liu Jinshu, an analyst at SIAS Research.

"For the STI to stay above 3,000 next week, the market should not suffer from any more negative headlines coming out from the euro zone," he said.

DMG said in a report that it believes the market will take a breather in the short term following the sharp year-to-date rise.

Singapore hotel operator CDL Hospitality Trusts and medical services provider Raffles Medical Group Ltd are among the stocks that may benefit from moves to promote tourism and healthcare.

Shares of Singapore-listed software firm Silverlake Axis Ltd surged as much as 16 percent after DBS Vickers reinstated coverage with a buy call, saying it was a growth stock with quarterly dividends.

Shares of Creative Technology extended gains from the previous day after the firm launched a new technology platform targeting the tablet computer market in China. Creative shares had roughly doubled in the past two days.

Eveline Danubrata

Reuters

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