Singapore share prices closed flat on Thursday after recent stock sales by state-linked investment firm Temasek Holdings dampened sentiment, dealers said. They said, however, the selloff in Temasek-linked stocks may also provide good buying opportunities in select stocks.
The Straits Times Index added 2.37 points at 2,491.64 on volume of 1.19 billion shares worth 1.16 billion Singapore dollars (716 million US). Gainers beat losers 362 to 154 with 691 shares unchanged.
"I think Temasek is trying to shift some of its investments into stocks overseas but this should not have a big impact on the market and for stocks like SingTel it's a good buying opportunity," a dealer at a local brokerage said.
After the market closed, Temasek confirmed it had divested shares in Australian airline Qantas.
Temasek sold 770 million shares in Singapore Telecommunications (SingTel) at a discounted price Tuesday, leading to a slide of more than six percent in the stock price. SingTel closed 0.01 higher at 2.64.
On Wednesday, Temasek sold shares in commodities supplier Olam International and healthcare company LMA Holdings.
The dealer said Temasek can be expected to continue progressive divestments.
Supporting the key index was DBS which advanced 0.20 to 16.20 after it failed in a bid to control a stake in Korea Exchange Bank.
The banking stock had previously come under pressure as investors feared the asking price for the stake would put DBS's cashflow under strain.
"DBS has now rebounded, and recovered from its low of 15.60," the dealer said. Other winners included Keppel Corp was up 0.20 to 13.40, Creative Technology climbed 0.10 to 11.90 and City Developments advanced 0.10 to 10.10.
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