Singapore's STI climbs 1.6% to 16-month high
Friday, 3 October 2003

Singapore shares continued its rally from the day before, cheered by rise in US and news that a key gauge showed that manufacturing in September expanded at its fastest pace in 14 months.

Singapore shares powered ahead to their highest levels in 16 months as bank and blue chips surged on hopes that the local economy is on the route to recovery. Data released late yesterday showed that factory activity expanded for a fourth straight month in September. The Purchasing Managers' Index (PMI) rose 0.7 point to 52 from August, holding above the key 50-threshold mark and within expectations. A reading above 50 indicates production expanded. Factories reported higher orders, signaling the city-state's economy may gain momentum ahead.

Singapore Telecommunication gained after it said it will sell its stake in Belgacom SA, Belgium's former phone monopoly as the sale may result in a chance that the money raised could be returned to the shareholders as dividends.
Further boost for the market came from property developers such as City Developments Ltd that rose after an offer was made for a government land site at a fifth more than the opening bid, signaling a more optimistic outlook for Singapore's property market.

At the close, the Straits Times Index closed up 1.60 percent, or 26.29 points, to end the day at 1670.30. Also on the rise, the MSCI Singapore Index rose 1.81 points or 1.81 percent to close at 206.21.

In the futures market, the key Straits Times Index October was up 28 points at 1685 with 11 lots traded and an open interest of 128 lots as of close on the 2nd October 2003.

The October SIMSCI futures contract ended the day higher to close at 207.6, up 3.5 points. 3247 lots changed hands at the SGX-DT, and an open interest of 15747 lots remained as of close on the 2nd October 2003.