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Singapore stock market and companies daily report (STI, Ascendas REIT) (February 17, 2010)

Contributed by Shares Investment

By Shares Investment

Upbeat Mood After CNY Holidays

The STI was up 1.1% at midday, as a 1.7% lead on Wall Street overnight drove sentiment. The broader S&P 500 also registered similar gains, as all sectors performed well. Market watchers said that concerns were allayed to some extent after a meeting of finance minisiters in Europe provided some visiblity to the debt crisis that was enveloping Greece.
Positive economic data from the US also paved the way for some gains. New York Fed’s manufacturing survey in February showed that business conditions in the sector to have improved – the index rising by 9 points from January’s 15.92 – beating economists’ estimates. Another gauge of business conditions from the National Association of Home Builders also saw builder confidence growing this month, recovering from a seven month low.
Risk aversion waned on the local bourse, as most FTSE STI Mainboard sub-indices gained in morning trade. Resource, offshore and marine plays outperformed – only the more defensive Telecom index fell, pulled down by cautious reaction on news that Singtel’s Indian associate is making another attempt to enter Africa by acquiring Kuwaiti telco,  Zain’s, operations on the continent.

A-Reit Announces Acquisitons

Ascendas REIT today announced that it has entered into separate agreements to acquire two industrial properties in Singapore for $131m.

A-Reit said its trustee, HSBC Institutional Trust Services, has already laid down a $50,000 deposit with respect to a purchase of DBS Asia Hub, a nine-storeyed industrial property within Changi Business Park, for $116m. DBS Asia Hub is currently leased to the eponymous bank for 10 years. The trust has also agreed to acquire a light

industrial facility at 31 Joo Koon Circle for $15m.

The deals will be financed by proceeds from a private placement exercise held last year and are expected to be yield accretive. Shares up 1.6% at break of trading.