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STI gets a boost after PM’s address in House

Singapore shares ended a tad firmer, however upside was capped by analysts’ warnings that the excessive market valuations impressed by the know-how rally in the United States might result in profit-taking.

Investors had been principally sidelined forward of the Federal Reserve’s publication of its Beige Book report on the state of the US’ financial well being yesterday.

“We ask ourselves the same question over and over - how extended are valuations?” Mr David Kotok, chief funding officer at Cumberland Advisors, stated on Bloomberg TV. “Then we see reports on earnings, and there are positive earnings surprises coming from the tech companies - and that would suggest that if that momentum continues, then in fact they are not yet overvalued.”

In Singapore, Prime Minister Lee Hsien Loong’s parliamentary address lent some assist to the market, notably the true property funding trusts (Reits).

PM Lee stated that regardless of the depressed financial local weather, the place some firms are consolidating and shedding staff, many funding initiatives need to come to Singapore due to its steady governance and clear legal guidelines. These investments are in the areas of biomedical science, info know-how, insurance coverage and finance.

“His speech comes at a time when businesses are worried with corporate downsizing. The news gives some glimmer of hope,” stated a dealer.

The Straits Times Index (STI) closed at 2,539.94, up 1.39 factors, or 0.05 per cent. About 1.66 billion securities, price $1.02 billion, modified fingers.

Mapletree Commercial Trust, Mapletree Industrial Trust, Keppel DC Reit, and Frasers Centrepoint Trust had been among the many Reits that noticed their costs advance.

Technology shares continued to agency together with the US tech shares. Venture Corp closed at $20.20, up 1.2 per cent. AEM Holdings closed 2.45 per cent up at $4.18.

Regional markets principally edged up yesterday. South Korean shares gained 0.63 per cent on continued international promoting. Tokyo shares closed 0.47 per cent increased.

Australian shares rose 1.eight per cent yesterday, its greatest one-day proportion acquire since Aug 4. Investors seemed previous Australia’s greatest financial contraction on document to concentrate on indicators of a broader financial restoration following upbeat manufacturing knowledge from the US and China.

But Hong Kong shares slipped 0.26 per cent. China’s benchmark Shanghai Composite Index dipped 0.17 per cent, although the Shenzhen Composite Index on China’s second trade added 0.27 per cent.

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