Singapore shares closed 0.15 percent lower on Friday, as investors turned cautious ahead of China's official manufacturing purchasing managers' index (PMI) due for release on Sunday.

The Singapore market rose initially on Friday as investors shrugged off the first quarterly contraction of the U.S. economy in three years and focused on signs of a strengthening labor market. U.S. first-quarter gross domestic product fell a steeper- than-forecast 1 percent, but the drop was not enough to quash expectations of a second-quarter recovery. Overnight data also showed a decline in weekly jobless claims that indicated U.S. labor market is strengthening.

Separately, the European Central Bank is now widely expected to launch a package of policy options for its June 5 meeting that includes cuts in all its interest rates.

Singapore's benchmark Straits Times Index fell 4.86 points to 3, 295.85 points. Trading volume was 1.84 billion shares worth 1.66 billion Singapore dollars (1.33 billion U.S. dollars). Decliners outnumbered advancers 230 to 206, while 503 stocks closed changed.

Phillip Securities Research said "price was negotiating a six month high resistance at 3,280 points and bounced off support at the 3,225 points region. A successful break implies further short term upside."

But Voyage Research said unless the Straits Times Index manages to stay above 3,300 points on Friday, the current uptrend is yet to be confirmed.

Among top actives, ASL Marine rose 0.8 percent to 66.5 Singapore cents. It has secured new shipbuilding contracts worth approximately 91 million Singapore dollars for the construction of three units of powerful and highly manoeuvrable Infield Support Vessels and one unit of Seismic Support Vessel. The vessels are secured from customers in Australia and Norway respectively. The four vessels will be built at the Group's shipyard and are expected to be completed in the first quarter of 2016.

PEC Limited jumped 5.5 percent to 57.5 Singapore cents. It added new contracts worth 100 million Singapore dollars to its order-book. Its latest wins include a contract from an existing client to perform engineering, procurement and construction works for crude oil storage and handling facilities in the Middle East. Its long-standing relationships with multinational corporate clients play key role in securing contracts.

Among top gainers, Jardine Strategic rose 1 percent to 36.39 U. S. dollars, while Jardine Cycle and Carriage became one of the top losers by falling 4.5 percent to 43.58 Singapore dollars. (1 U.S. dollar equals 1.25 Singapore dollars) Endi

Go to Forum >>0 Comment(s)