STI continues recovery despite subdued sentiment

SINGAPORE shares yesterday continued their tentative recovery on moderate volume, as uncertainties remain over the market's direction in the short term.

About 1.5 billion shares worth $1.63 billion changed hands, a modest improvement over Thursday's volume of 1.38 billion but well under the daily levels seen in the last three months.

This suggests that investors are still nervous about the market's prospects and shy about bargain-hunting in case another barrage of selling erupts, said a dealer.

The Straits Times Index (STI), which struggled for direction much of yesterday, finished at 3,143.71, up 21.22 points or 0.7 per cent. The market has so far recovered about 5.4 per cent - more than half the 9.9 per cent losses - after its recent sharp correction.

But some analysts expect the market to find a firmer footing and investor cash to flow back into the local bourse after last night's announcement of United States jobs data for February.

Fraser Securities research head Najeeb Jarhom said: 'Conflicting signals may end soon as the STI winds down its wild swings of the past week and consolidation sets in with the index building a new base around 3,100.'

Gainers led losers by 483 to 229, with advances by property counters leading the index up.

Hongkong Land gained 28 US cents to US$4.64 and South-east Asia's largest developer CapitaLand rose 20 cents to $7.20.

Electronics firm Venture Corp did its bit, surging 60 cents to $14.60, while fashion retailer FJ Benjamin Holdings rose 1.5 cent to 68 cents after major investor Raffles Investments raised its stake.

The top loser was Jardine Matheson Holdings, which shed US$1 to end at US$21.70, after soaring US$1.70 a day earlier.

Suntec Reit was the third most active, following a married deal of 23.6 million shares that was done at $1.876 each. It gained three cents to $1.92 and total volume was 42.75 million. On Thursday, it also announced two married deals at $1.828 and $1.85 apiece.

Trading of NH Ceramics was halted pending an announcement.

arthurp@sph.com.sg