Singapore shares rose for the second straight day, with commodity-related stocks figuring among the biggest gainers on renewed risk appetite after Greece’s election delivered a slim parliamentary majority to pro-bailout parties.
The Straits Times Index was up 1.2 percent at 2,844.15 points, while MSCI’s broadest index of Asia Pacific ex-Japan Japan advanced 2 percent.
Olam International Ltd gained 4 percent, while Golden Agri-Resources Ltd and Noble Group Ltd added more than 2 percent each.
Coal producer Sakari Resources Ltd surged as much as 7.1 percent on volume of 22 million shares, 1.7 times the average full-day volume traded over the past 30 days. Sakari was the second-highest traded stock by value.
“It’s one of the stocks that had dropped a lot - one of the worst performers recently. So when the market rebounds, those commodity stocks that fell the most will rebound more,” said a trader. As of Friday, Sakari’s shares had lost more than half their value from the year’s high of S$2.71 in late February.
(Reporting by Eveline Danubrata in Singapore; email@example.com)
11:02 STOCKS NEWS SINGAPORE-Maybank says hotel room glut looms
Maybank Kim Eng expects 14.2 million tourist arrivals in Singapore this year, up 8 percent from 2011, but hotel room supply is forecast to grow at a compound annual growth rate (CAGR) of 6.3 percent from 2011 to 2015, outstripping demand growth of 5.9 percent.
Overall, 11,441 new rooms from known projects will be added to the market between the second quarter of 2012 and 2015, Maybank said, adding that the additional supply of hotel rooms could dampen occupancy rates.
Property consultancy CBRE said in a report last week that Singapore hotel room rates were at a record high with revenue per available room (RevPAR) soaring.
In the first quarter of 2012, average daily rates of gazetted hotels grew 11.4 percent to S$259 ($200) from a year earlier and RevPAR increased 14.7 percent year-on-year to S$224, CBRE said.
Maybank expects Singapore hotels to register a CAGR of 3.2 percent for average room rate over 2011-2015 fiscal years. This is likely to cap the share price of CDL Hospitality Trusts , which derived most of its revenue from the city-state, the broker said.
Maybank maintained its hold rating and S$1.94 target price on CDL. CDL shares were up 1.1 percent at S$1.915 on Monday. The stock has risen 24 percent this year, outperforming the 12.5 percent gain in the FT ST Midcap Index.
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Reporting by Eveline Danubrata in Singapore; firstname.lastname@example.org $1 = 1.2723 Singapore dollars