SINGAPORE (Thomson Financial) - Singapore shares opened slightly higher on Wednesday on selective blue-chip buying after Singapore Airlines (SIA) and Singapore Telecommunications (SingTel) posted better-than-expected full-year results.
But overall sentiment remained cautious following a mixed performance on Wall Street after oil prices hit a new record, reviving concerns about consumption, inflation and economic growth.
U.S. stocks ended mixed on Tuesday after oil spiked to a new trading record of $126.98 a barrel, while U.S. retail sales data showed a 0.2 percent drop in April, as expected.
At 9:25 a.m. (0125 GMT), the benchmark Straits Times Index was up 4.80 points or 0.15 percent at 3,208.33. The index opened up 10.63 points or 0.3 percent at 3,214.05.
Gainers edged past decliners 131 to 120, with 1,310 stocks unchanged.
There were 125.2 million shares traded, valued at S$194 million.
SIA rose 1.3 percent to $15.96 on the airline's upbeat report of a full-year net profit of S$2.05 billion after the market closed on Tuesday. The profit figure beat analysts' average estimate of a S$1.93 billion profit, as strong passenger traffic offset rising operating costs.
Investors also bought the stock for its dividend payout despite the airline's warning of a challenging year ahead due to an expected economic slowdown and record fuel prices.
SIA declared a final dividend of 80 Singapore cents a share, bringing the total payout to S$1 for the year.
'It is significant that the S$1 dividend per share for fiscal year 2008 has been declared as ordinary dividends, versus the 50 cents special dividends that were included in last year's payout. We believe this signifies that management is looking to continue paying this level of dividends consistently to reward shareholders,' said Paul Yong, analyst at DBS Vickers Securities.
'SIA's ability to continue raising their yields and keeping their planes full should help the group to maintain a good profitability level,' he said.
SingTel rose 0.5 percent to S$3.77 after it posted a year to March net profit of S$3.96 billion, supported by higher contributions from its regional units, beating analysts' estimate of S$3.77 billion.
($1 = S$1.37)
yuinmunn.szetoh@thomsonreuters.com . ys/nt COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
But overall sentiment remained cautious following a mixed performance on Wall Street after oil prices hit a new record, reviving concerns about consumption, inflation and economic growth.
U.S. stocks ended mixed on Tuesday after oil spiked to a new trading record of $126.98 a barrel, while U.S. retail sales data showed a 0.2 percent drop in April, as expected.
At 9:25 a.m. (0125 GMT), the benchmark Straits Times Index was up 4.80 points or 0.15 percent at 3,208.33. The index opened up 10.63 points or 0.3 percent at 3,214.05.
Gainers edged past decliners 131 to 120, with 1,310 stocks unchanged.
There were 125.2 million shares traded, valued at S$194 million.
SIA rose 1.3 percent to $15.96 on the airline's upbeat report of a full-year net profit of S$2.05 billion after the market closed on Tuesday. The profit figure beat analysts' average estimate of a S$1.93 billion profit, as strong passenger traffic offset rising operating costs.
Investors also bought the stock for its dividend payout despite the airline's warning of a challenging year ahead due to an expected economic slowdown and record fuel prices.
SIA declared a final dividend of 80 Singapore cents a share, bringing the total payout to S$1 for the year.
'It is significant that the S$1 dividend per share for fiscal year 2008 has been declared as ordinary dividends, versus the 50 cents special dividends that were included in last year's payout. We believe this signifies that management is looking to continue paying this level of dividends consistently to reward shareholders,' said Paul Yong, analyst at DBS Vickers Securities.
'SIA's ability to continue raising their yields and keeping their planes full should help the group to maintain a good profitability level,' he said.
SingTel rose 0.5 percent to S$3.77 after it posted a year to March net profit of S$3.96 billion, supported by higher contributions from its regional units, beating analysts' estimate of S$3.77 billion.
($1 = S$1.37)
yuinmunn.szetoh@thomsonreuters.com . ys/nt COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.