SINGAPORE, Sept. 23 (Xinhua) -- Singapore shares closed 0.05 percent higher on Tuesday, as investors took comfort in the latest Chinese manufacturing data.
HSBC's preliminary China manufacturing Purchasing Managers' Index report for September rises to 50.5 compared to a final reading of 50.2 in August, beating market expectations. HSBC said economic activity in China's manufacturing sector showed signs of stabilization in September.
Overall, the data still pointed to modest expansion, with the property downturn remaining the biggest downside risk to growth.
The benchmark Straits Times Index inched up 1.52 points to close at 3,298.09. Trading volume was 1.38 billion shares worth 932 million Singapore dollars (734 million U.S. dollars). Decliners outnumbered advancers 246 to 186, while 502 stocks closed unchanged.
Voyage Research said that "as we continue to see the Straits Times Index as relatively undervalued, any declines are likely to be limited and may attract buyers."
"However, strong and consistent upside may take some time to occur," it added.
Among top actives, Vallianz Holdings Limited gained 2.7 percent to close at 11.5 Singapore cents. It announced that it has signed an agreement to acquire a shipyard in Batam, Indonesia for 19.8 million Singapore dollars. The acquisition will be funded by issuing new shares at 13.8 cents per share, which is 24 percent premium to the volume weighted average price of 11.16 cents a share on Sept. 19. The facility will be used to dock and maintain Vallianz's vessels. This will enable it to reap operational efficiencies and save costs as compared to leasing third party yards.
Tritech Group Limited inched up 0.6 percent to close at 17.6 Singapore cents. It announced that it has secured a 13.8 million Singapore dollar contract from the Land Transport Authority of Singapore involving the consultancy and supervision work of the construction work at two stations in a subway train line. The contracts start in September 2014 and are expected to complete in December 2020.
Among the top gainers, DBS rose 1.2 percent to 18.38 Singapore dollars, whereas Jardine Cycle and Carriage became one of the top losers by falling 1 percent to 43.33 Singapore dollars. (1 U.S. dollar = 1.27 Singapore dollars)
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