Singapore stocks snap five-day losing streak

Fri Sep 27, 2013 1:36am EDT

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Singapore shares rose on Friday, snapping a five-session losing streak, after U.S. jobless claims data pointed to an improving labour market.

The Straits Times Index was up 0.7 percent, while MSCI's broadest index of Asia-Pacific shares outside Japan was 0.2 percent higher.

Some of the biggest gainers on the index include beer and soft drinks company Thai Beverage Pcl, which rose 2 percent, and warehouse services provider Global Logistic Properties, which advanced 1.4 percent.

Shares of Singapore airport services and catering firm SATS Ltd jumped as much as 4.5 percent to S$3.27, the highest since Aug. 1. More than 1.8 million shares were traded, 1.9 times the average full-day volume over the past 30 days.

SATS will buy a cruise and ferry terminal operator from a unit of Singapore state investor Temasek Holdings for S$110 million ($87.7 million), the company said after market hours on Thursday.

CIMB Research raised its target price on SATS to S$3.59 from S$3.52 and maintained its "outperform" rating on the stock, saying the acquisition will add to earnings.

The brokerage increased its earnings per share estimate on the company by about 2 percent to 3 percent for the fiscal 2015-2016 period to take into account the buy. "Higher growth at Changi Airport is a potential catalyst," it said.

Shares of palm oil producer Indofood Agri Resources Ltd rose as much as 3.1 percent. DBS Vickers on Friday upgraded the stock to "buy" and raised its target price to S$0.93 from S$0.81, citing a higher forecast for output and average selling price.

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