SINGAPORE, Nov 27 (Reuters) - Shares of commodity firm
Noble Group (NOBG.SI) gained as much as 11 percent on Thursday
after China cut interest rates on Wednesday to help drive its
economy.
"Brokers buy as they anticipate interest rate cuts in China
that may boost some of the commodity demand," said a dealer
from a Singapore brokerage firm.
China slashed interest rates on Wednesday for the fourth
time since mid-September, dramatically stepping up the pace of
monetary easing to cushion the blow of global financial turmoil
on the world's fourth-largest economy. [ID:nPEK95037]
By 0835 GMT, shares of Noble were up by 10.6 percent at
S$0.885.
The benchmark Straits Times Index .FTSTI dipped by 0.37
percent.
PARKWAY HOLDINGS
Shares of Singapore healthcare firm Parkway Holdings
(PARM.SI) rose as much as 6 percent on Thursday as investors
felt the stock had fallen to attractive levels.
A local trader said Parkway had hit "rock bottom" and was
attracting punters who believed there was no downside left in
the share price. The stock fell to a year-low of S$1.03 on Nov
21.
"We are turning more positive on Parkway on the back of the
underperformance of its share price which, in our view, has
priced in most of the key risks," JPMorgan analyst Lucius Chong
wrote in a report on Thursday.
JPMorgan, which cut its target price for Parkway to S$1.30
from S$1.80 and has a "neutral" rating, said the new price
target assumed the firm would be unable to sell of the medical
suites at its upcoming hospital development in central
Singapore.
At 0325 GMT, shares of Parkway were up 4.5 percent at
S$1.39 while the benchmark Straits Times Index .FTSTI was 0.7
percent higher.
SEMBCORP INDUSTRIES
Shares of Sembcorp Industries (SCIL.SI) gained as much as
6.1 percent on Thursday after Merrill Lynch upgraded the stock
to "buy" from "neutral", citing steady earnings from the firm's
utilities business.
Sembcorp's utilities earnings are defensive by nature and
are supported by long-term contracts that average 15 years,
Merrill said.
By 0205 GMT, Sembcorp rose by 4.3 percent at S$2.41. The
benchmark Straits Times Index .FTSTI was up by 0.7 percent.
SINGTEL
Singapore Telecommunications (STEL.SI), Singapore biggest
company by market value, fell as much as 3.42 percent with 5.9
million shares traded, as increased geopolitical risk in the
region spooked investors and led to fears over its units
earnings.
At least 86 people were killed in attacks by gunmen in
India's commercial hub Mumbai on Wednesday. SingTel owns a
stake in India's top mobile operator Bharti Airtel (BRTI.BO).
"The problems in Asia are bearing an impact on SingTel
because SingTel has the widest overseas exposure," said Gabriel
Yap, senior dealing director at DMG Securities in Singapore.
"In times of recession, telco stocks are seen defensive,
but apparently this is not true for SingTel. Geopolitical risk,
sovereign risk and a devaluing Aussie dollar are all problems
for SingTel," Yap said.
By 0153 GMT, shares of SingTel were down 2.28 percent
against the benchmark Straits Times Index .FTSTI that was up
1.14 percent.
Yongnam Holdings
Shares of construction firm Yongnam Holdings (YNAM.SI)
gained as much as 14.3 percent on Thursday after it won a
S$23.8 million ($16 million) contract to build bridges and
canopies for the Marina Bay Sands casino.
By 0124 GMT, Yongnam was up 7.1 percent at S$0.075 in a
broader market .FTSTI up 0.9 percent.
(Reporting by Matthew Webster, Melanie Lee and Laurence Tan;
Editing by Kevin Lim)
