Singapore shares rallied on Wednesday, with Singapore
Telecommunications Ltd at its highest in nearly
six-and-half months ahead of its third-quarter earnings on
The Strait Times Index was up 0.9 percent to
3,299.53 points, while the MSCI's broadest index of Asia-Pacific
shares outside Japan rose 0.8 percent. China,
Taiwan and Hong Kong markets remain closed for the Lunar New
SingTel, Southeast Asia's largest telecommunication
operator, gained as much as 1.1 percent to S$3.61, the strongest
level since early August.
Morgan Stanley advised investors to accumulate SingTel
shares as the telco offers a "solid combination of growth and
yield", with a price-earnings ratio of 13.8 times. The business
environment is improving for all of SingTel's key operating
businesses, it added.
Shares of Singapore Airlines Ltd (SIA)
underperformed the market, falling as much as 2.6 percent with
928,000 shares traded, 1.3 times the average full-day volume
over the past 30 days.
SIA reported last week a slightly weaker-than-expected 6
percent rise in third-quarter net profit as earnings from the
sale of aircraft and spares offset losses at its cargo unit, and
it warned of tough conditions ahead.
Maybank Kim Eng downgraded the stock to 'sell' from 'hold'
and cut its target price to S$10.40 from S$10.50. The broker
said SIA's "disappointing" results affirmed its view that
airlines, especially full-service carriers, face a very
competitive environment with no reprieve in sight.
1402 (0602 GMT)