SINGAPORE, Dec 7 (Reuters) - Singapore shares rose to the highest in two months, lifted by Hongkong Land Holdings Ltd and CapitaLand Ltd on hopes of stronger property sales in China, whose economy is showing signs of picking up.
The Straits Times Index rose as much as 1 percent to 3,109.92 points, the highest intra-day level since Oct. 5. MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.5 percent higher.
Shares of Hongkong Land rose as much as 4.4 percent to the highest since early August 2011, while CapitaLand shares gained as much as 3.4 percent to their highest since late January last year.
Hongkong Land and CapitaLand have significant exposure to the Chinese property market.
“One reason is the China portfolio is looking good. Li Keqiang keeps talking about rural urbanisation, sending China properties stocks soaring,” said a trader.
Chinese Vice Premier Li Keqiang said urbanisation will drive most of the country’s development in the next decade, the local media reported last week, boosting Chinese property, railway and other infrastructure-related stocks.
The pace of activity in China’s manufacturing sector quickened for the first time in 13 months in November, a survey of private factory managers found, adding to evidence that the economy is reviving after seven quarters of slowing growth.
(Reporting by Eveline Danubrata in Singapore; Editing by G.Ram Mohan; email@example.com)
STOCKS NEWS SINGAPORE-China Minzhong up after funds, investors buy 10.3 pct stake
Shares of China Minzhong Food Corp Ltd jumped after it said institutional funds and high net worth investors had bought a 10.3 percent stake in the food processing firm from Olympus Capital Holdings Asia at a placement price of S$0.80 per share.
China Minzhong shares rose as much as 6.7 percent to S$0.80 after a trading halt was lifted on Friday. Nearly 14 million shares were traded, 1.8 times the average full-day volume over the past 30 days.
But even after the rise, the stock was still down nearly 2 percent so far this year, lagging the 25 percent gain in the FT ST Small Cap Index.
China Minzhong shares had plunged almost 12 percent on Thursday after a block trade fuelled speculation that one of its largest shareholders had sold its stake.
Olympus, a private equity fund, had invested in China Minzhong since 2006, the company said in a statement on Friday.
“However, given the closed end nature of private equity funds, it is a natural progression for private equity firms to liquidate their investments post IPO and return capital to their investors,” China Minzhong said.