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Roundup: Singapore stocks end up 0.95 pct

Xinhua, February 2, 2015 Adjust font size:

Singapore shares closed 0.95 percent higher on Monday, as investors bet China will loosen monetary policy following weekend Chinese data.

China's factory sector unexpectedly shrank for the first time in nearly two-and-half years last month and firms see more gloom ahead. The official Purchasing Managers' Index (PMI) fell to 49.8 in January, a low last seen in September 2012 and below the 50- point level that separates growth from contraction on a monthly basis.

Bank of America Merrill Lynch said the market is expecting loose monetary policy to jumpstart growth again. Deutsche Bank Research also predicted a 50 basis-point cut to Chinese banks' reserve ratio requirements in March and an interest rate cut sometime in the second quarter.

The Chinese report came after the fourth-quarter U.S. gross domestic product report on Friday that showed growth slowed sharply as weak business spending and a wider trade deficit offset a surge in consumer spending.

Meanwhile, Greece's new leftist government defied creditors' warning and started to roll back on austerity measures imposed under its existing bailout agreement. It sought to end the existing arrangement with the European Union, the European Central Bank and International Monetary Fund when its aid deadline expires on Feb. 28.

DBS Group Research said "we maintain our view that further near- term upside for the Straits Times Index should be capped at around 3,450 points. Pullback support continues to be at 3,380 points and 3,390 points."

Singapore's benchmark Straits Times Index rose 32.15 points to 3,423.35 points. Trading volume was 1.31 billion shares worth 1.29 billion Singapore dollars. Decliners outnumbered advancers 261 to 182, while 495 stocks did not move.

Perennial Real Estate Holdings closed flat at 1.045 Singapore dollars. It announced as part of a consortium, it will buy an office property called AXA Tower in the central business district of Singapore, valued at 1.17 billion Singapore dollars. Perennial will own 31.2 percent of the building after completion of the purchase.

Among top gainers, Jardine Matheson rose 1.1 percent to 64.80 U. S. dollars, while Cortina Holdings became one of the top losers by sinking 9.6 percent to 80.5 Singapore dollars. (1 U.S. dollar equals to 1.35 Singapore dollars) Endi