STI closes higher on unexpected strength of factory output

SINGAPORE shares were pushed into positive territory on Friday, following a surprising set of industrial production figures that eased worries about prolonged economic weakness.

The Straits Times Index (STI) climbed 0.88 per cent or 21.46 points to 2,472.28 on Friday. Gainers outpaced losers 231 to 192, with 1.25 billion securities worth S$890.48 million changing hands.

Singapore Exchange (SGX) market strategist Geoff Howie said that the morning momentum came from renewed hopes for more US fiscal stimulus ahead of the US presidential election. While weaker Europe opens whittled away that impact in the afternoon, key Singapore cyclicals were able to hold much of their ground, with industrial production numbers that "blew expectations out of the water", he said. Singapore's factory output soared 13.7 per cent year on year in August.