December 3, 2012 / 4:31 AM / 5 years ago

STOCKS NEWS SINGAPORE-Shares advance to 8-week high

Singapore shares advanced to an eight-week high, in line with other Asian bourses, as firm manufacturing data from China helped to boost confidence about a recovering global economy.

The Straits Times Index (STI) was up 0.2 percent at 3,076.49 points while the MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.1 percent.

DBS Vickers said it expects the STI to trade in a narrow 3,030-3,090 range over the next three weeks in its traditional year-end lull period.

The pace of activity in China's vast manufacturing sector quickened for the first time in 13 months in November, with the final reading for the HSBC Purchasing Managers' Survey (PMI) rising to 50.5 in November, further evidence that the economy is reviving after seven quarters of slowing growth.

DMG & Parters said it still likes Singapore-listed real estate investment trusts in the near term, which will benefit from a low interest rate environment and ample liquidity as a result of quantitative easing from central banks globally.

The brokerage prefers REITs with exposure to office and retail markets, with Frasers Commercial Trust being the top pick. DMG has a 'buy' rating on the REIT with a target price of S$1.41.

Singapore REITS have surged 33 percent since the start of the year, against a broader market that is up 16.3 percent.

1225 (0425 GMT)

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