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STOCKS NEWS SINGAPORE-Index snaps 10-day decline; ThaiBev leads
August 29, 2013 / 5:37 AM / 4 years ago

STOCKS NEWS SINGAPORE-Index snaps 10-day decline; ThaiBev leads

Singapore shares rose, snapping a 10-day losing streak, led by a 7 percent jump in shares of Thai Beverage PCL, while Olam International Ltd posted its sharpest daily fall in nearly nine months, ahead of its results.

The benchmark Straits Times Index gained half a percent to 3,019.01 points, recovering from a nine-month low hit on Wednesday and taking a breather from 10 straight sessions of losses during which it fell 7.5 percent.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 1 percent.

Nomura analysts said the recent turmoil in regional markets stemmed from the unwinding in fixed income and subsequent pressure on local currencies, rather than the dire outlook on economic growth. It is too soon to call a bottom to the downfall in a number of Asian markets, but Singapore, alongside Taiwan, Korea and China, are appealing, they said.

“These markets offer not only the comparative insulation of stronger external balances and more stable currencies, but also are generally more directly leveraged to the strengthening developed market demand that ultimately is the factor ushering U.S. Treasury yields higher,” Nomura analysts said in a research note.

Thai Bev shares jumped as much as 7.1 percent to S$0.45, bouncing from a seven-month low of S$0.42 hit in the previous session, after Fraser and Neave Ltd, controlled by Thai Bev’s owner, laid out plans to spin off its property arm.

“Moody’s believes the spin-off will facilitate moves by ThaiBev to better leverage revenue and cost synergies with F&N’s food & beverage business, while the latter -- in the absence of its property business -- can better focus on expanding,” Moody’s Investors Service said in a note.

Olam shares dropped as much as 4.6 percent to S$1.44, just before the company is due to report quarterly results after the market closes.

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