Singapore stocks close higher in low volume

A MODEST rise in the Dow futures and a firm session in Shanghai on Thursday helped put 12.41 points on the Straits Times Index at 3,038.11.

Turnover however, was a poor 1.2 billion units worth S$680.7 million of which 175.4 million worth S$412.6 million was done in the 30 Straits Times Index components, which meant that the remaining 700 plus stocks contributed only S$268 million or 39 per cent to total volume.

Excluding trading in STI members, the average value per unit done was S$0.26, firmly in penny stock territory. Of the 20 most active stocks, 17 were priced below S$0.20. Stratech Group, which headed the actives list on Wednesday, dropped to fifth, its place taken by Asia Pacific Strategic Investments.

Shares of the Singapore Exchange (SGX) ended S$0.04 higher at S$7.55 on volume of 2.1 million after the exchange on Wednesday reported a 28 per cent rise in first quarter net profit to S$99.3 million and raised its cash dividend for the quarter to S$0.05 per share.

Goldman Sachs said it is maintaining its "neutral" rating on SGX with a 12-month, dividend-derived target price of S$7.50, but has raised its FY16-18 estimated earnings per share by 1-2 per cent.