SINGAPORE, May 29 (Reuters) - Singapore shares regained their footing on Thursday, with the benchmark index hitting its highest level in nearly a year, while Singapore Post Ltd struck its record high.
The benchmark Straits Times Index rose as much as 1 percent to an intra-day high of 3,304.78, on course for its biggest daily gain in more than two weeks, as bulls started returning to the markets after a rash of dealmaking activity spurred investor appetite. MSCI’s broadest index of Asia-Pacific shares outside Japan was more muted with a 0.2 percent gain.
“We’ve been seeing low turnover the last few days, but today’s volume is more bullish because investors are seeing value from the deals that have been happening,” said a Singapore-based dealer.
“If the big boys are going in, the rest of the market will go along,” he added.
In the latest deal, a unit of Chinese e-commerce giant Alibaba Group Holdings Ltd IPO-ALIB.N said it will buy a minority stake in Singapore Post for S$312.5 million ($249 million) to help set up an international e-commerce logistics business. Shares of SingPost soared as much as 12.9 percent to their record high of S$1.75.
CIMB maintained its “add” rating on the stock while raising the target price to S$1.86, citing the possibility of more deals and growing e-commerce volumes as key catalysts for growth.
“SingPost’s strategic partnership with Alibaba opens doors via access to funds for larger-scale M&As and the opportunity to leverage on Alibaba’s customer base to scale up its regional e-commerce logistics operations,” the brokerage said.
Olam International Ltd was among the other top performers, rising 2.7 percent at S$2.22 to hover near its two-year high. Commodities firm Golden-Agri Resources Ltd also saw strong gains, adding 3.5 percent to hit a near two-week high of S$0.59. (Reporting by Andrew Toh; Editing by Subhranshu Sahu)