Singapore shares closed 0.64 percent higher on Tuesday, although caution prevailed in the market on expectation that Italian Prime Minister Silvio Berlusconi may resign amid Euro-zone debt crisis.
Italian government bond yields had soared to a near 15-year high, putting the Euro zone's third-largest economy now at the center of the region's debt woes.
The benchmark Straits Times Index rose 18.28 points to close at 2,866.52 points. Trading volume was 1.51 billion shares worth 1.22 billion Singapore dollars. Decliners outnumbered advancers 270 to 191, while 690 stocks closed unchanged.
Among top actives, Noble Group rose 2.2 percent to 1.60 Singapore dollars. Kim Eng Research rated the commodity trader " Buy" with a target price of 2.05 Singapore dollars, saying Noble' s early investment in Mongolia is paying off, with the resource- rich country now a major exporter of commodities from coking coal to copper.
ST Engineering gained 1.1 percent to 2.88 Singapore dollars. The company reported its third quarter net profit rose 2.7 percent on year to 133.8 million Singapore dollars, while revenue fell 6.2 percent on year to 1.4 billion Singapore dollars. Deutsche Bank Research said the results were weak but ST Engineering is "still a stable and well positioned group." The German research house cuts its target to 3.20 Singapore dollars from 3.95 Singapore dollars, but rating it "Buy".
Singapore Airlines lost 1 percent to 11.17 Singapore dollars. Phillip Securities Research maintained its "Hold" rating on the air carrier, but cut the target price to 11.35 Singapore dollars from 13.45 Singapore dollars. Singapore Airlines reported a 49 percent fall in second quarter net profit to 194 million Singapore dollars, due to higher fuel prices and a decline in passenger yields.
Yangzijiang Shipbuilding closed flat at 95.5 Singapore cents. The Singapore-listed Chinese shipbuilder said it is acquiring the balance of 49 percent stake in Jiangsu Runyuan Rural Microfinance for 147 million Chinese Yuan. The group's investment in microfinance and venture capital businesses had accumulated to about 1 billion Chinese Yuan.
Genting Singapore inched up 1.4 percent to 1.75 Singapore dollars. The casino operator will report quarterly earnings this Thursday. RBS Research forecast Genting to report adjusted earnings before interest, taxes, depreciation and amortization of 371 million Singapore dollars for its third quarter, up from 347 million Singapore dollars in the previous quarter.
CH Offshore rose 1.3 percent to 38 Singapore cents. DBS Group Research said CH Offshore's first quarter results were below expectation on lower revenue, weaker margins and higher admin expenses. The research house downgraded it to "Hold", and cut the target price 43 Singapore cents.
Among the top gainers, Jardine Matheson surged 4.1 percent to 53.75 U.S. dollars, while OCBC Bank became one of the top losers by falling 1.3 percent to 8.42 Singapore dollars. (1 U.S. dollar equals to 6.347 Chinese Yuan and 1.27 Singapore dollars)
