Phillip Capital has upgraded Singapore Exchange to "buy" from "accumulate" and raised its price target to $8.35 after increasing its FY2015 and FY2016 earnings estimates by 9% and 12% respectively to reflect its expectation of higher securities and derivatives trading values.
The average daily value of stocks traded went up 7.7% q-o-q to $1.04 billion in the December quarter, despite that being a seasonally quiet period, Phillip Capital analyst Benjamin Ong noted in a report today.
Singapore shares gave up their intraday gains as investors took profits ahead of tonight's US December nonfarm payrolls report, which will shed more light on the health of the world's biggest economy.
The Straits Times Index closed 0.2% lower at 3,338.44 after having risen to 3,372.
About 1.33 billion shares worth $1.25 billion changed hands, compared with 1.40 billion shares worth $1.15 on Thursday.
Market breadth turned neutral from positive, with 199 gainers and 193 decliners.
UOB led declines among blue chips, falling 2.7% to $23.38.
The ICE U.S. Dollar Index moved lower Friday as a contraction in hourly wage growth in December caused investors to delay their expectations for when the Federal Reserve will begin raising its benchmark interest rate.
But despite its losses on Friday, the greenback still recorded a gain for the week as investor worries about the outcome of Greece’s general election later this month pushed the euro lower against the dollar for most of the week.
The dollar index, DXY, -0.43% a measure of the greenback’s strength against a trade-weighted basket of six rival currencies, was down 0.46% to 91.9450.
The dollar USDJPY, +0.00% was at ¥118.50, compared with ¥119.65 late Thursday in New York. The euro EURUSD, +0.00% was at $1.1839, from $1.1788.
The pound GBPUSD, +0.00% rose slightly against the dollar, moving back above the $1.51 level after U.K. manufacturing output recorded strong growth in December.