Singapore stocks end 0.6% higher, buoyed by rise in Shanghai bourse

Singapore shares closed 0.6 percent higher on Tuesday, led by a rally in Chinese shares. Sentiment in China was boosted by separate media reports that the government would use railway projects to help cut gluts in steel, cement and other construction materials, and that Beijing would not permit economic growth to sink below 7 percent. While the gains in Shanghai bourse helped lift markets across Asia, investors remained wary ahead of earning release of U.S. computer giant Apple Incorporated, as they needed strong earnings results for more conviction. "We expect support from the 3,050 points level, while downward bias may persist should the Straits Times Index not clear above the 3,260 points resistance level," Phillip Securities Research said. SIAS Research also said that Singapore's benchmark Straits Times Index could see consolidation "around current levels with the immediate support established at 3,200 points while resistance remains pegged at 3,270 points." The Straits Times Index rose 19.41 points, or 0.6 percent, to close at 3,253.76. Trading volume was 2.21 billion shares worth 1. 42 billion Singapore dollars (1.12 billion U.S. dollars). Advancers outnumbered decliners 231 to 218, while 509 stocks did not move. Noble Group inched down 0.5 percent to close at 90.5 Singapore cents, whereas Wilmar International inched up 0.3 percent to end at 3.14 Singapore dollars. Noble said a plan to form a palm oil joint venture with Wilmar has stalled, as conditions for the planned sale of a stake to Wilmar have not been satisfied. Tiger Airways Holdings fell 2.4 percent to close at 60.5 Singapore cents, after the company reported weaker-than-expected quarterly results. CIMB Research downgraded the stock to " Underperform" from "Neutral" due to continued losses in operations of Australia, Indonesia and the Philippines, and cut the target price to 60 Singapore cents from 62 Singapore cents. SIA Engineering sank 4.1 percent to 4.95 Singapore dollars. It reported a 19.5 percent drop in the company's first-quarter operating profit sparked worries of earnings downgrades. UOBKayHian Research said given that the market expected a 5.4 percent rise in SIA Engineering's 2014 net profit, it now expects the market to cut earnings forecasts, thus downgraded its rating for the company to "sell" from "hold." Among the top gainers, Jardine Cycle and Carriage rose 2.8 percent to close at 41.84 Singapore dollars, while Jardine Matheson became one of the top losers by dropping 0.7 percent to 58.03 U.S. dollars. (1 U.S. dollar = 1.27 Singapore dollars)