Singapore shares inched up for a sixth consecutive session to their highest in more than a month although concerns about a weaker U.S. economy after disappointing U.S. jobs data on Tuesday kept gains in check.
The benchmark Straits Times Index was up 0.2 percent at 3,214.08 at 0616 GMT after rising to an intra-day high of 3235.25, on course for a sixth day of gains, but its rise during the winning run was just over 1 percent.
The MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.3 percent, as weak U.S. jobs data suggested the world’s top economy was losing momentum even before the U.S. fiscal standoff that partially shut down the government for more than two weeks.
“For the STI (Straits Times Index), we continue to see a near-term cap at 3,250 and working towards 3,330 by year-end on the assumption of a benign 3Q results season,” said DBS Vickers Securities in a research note.
The prospects that the U.S. Federal Reserve would extend its monetary stimulus into next year already pushed U.S. Treasury yields to three-month lows.
“Yield plays should be underpinned by the dip in long-bond yields”, DBS added.
The FTSE ST Real Estate Investment Trust Index rose 0.3 percent. Singapore-listed REITs enjoyed five quarters of consecutive gains until the winning streak was interrupted in the second quarter this year on rising speculation about the Fed tapering fiscal stimulus. So far this year, the REIT index has fallen more than 5 percent, after surging 37 percent in 2012.
CapitaMalls Asia Ltd led the index with a 3.3 percent gain, with trading volume more than double its 30-day average turnover. It rose as much as 4.3 percent to a five-year high of S$2.08 earlier in the day.