Fund managers look to Singapore

AS the year-end approaches, many fund managers in Asia are starting to look in earnest to see where gains might be had in 2004. Even with a lack of direction with US markets closed for Thanksgiving,

The Straits Times index climbed 12.50 points or 0.7% to 1700.91. It has risen a shade over 40% since it bottomed in March, when many of its leading constituents were clobbered by the Sars virus.

Strategists say Singapore could make further gains in the coming year as profits recover and the key US market - which takes the lion's share of local exports - roars ahead.

The gains today came across the board, and were also spurred by investors playing catch-up. Singapore's markets closed their doors for one day this week for a holiday.

Contract chip maker Chartered Semiconductor advanced 4 cents or 2.7% to S$1.55, while ST Assembly Test Services, which makes equipment that tests chips, gained five cents or 2.5% to S$2.06.

Banks were also targeted by buyers hopeful that they stood to benefit in line with the continued pick-up in the economy. State-linked DBS Group put on 10 cents or 0.7%; United Overseas Bank firmed by 20 cents or 1.6% to S$12.80, and Oversea Chinese Banking Corp traded at S$11.80, 10 cents or 0.9% higher.

MobileOne, Singapore's secondlargest mobile player, dipped one cent or 0.7% to S$1.47. It has risen strongly in recent sessions amid talk that its four founding shareholders, including Britain's Cable & Wireless, may be preparing to offload some or all of their joint 40% stake.

Tokyo managed a third consecutive positive session aided by strength in banking counters.

Mizuho Financial, the world's largest lender by assets, jumped 18,000 yen or 7% to 275,000 as investors applauded a first-half return to profitability, which it unveiled on Tuesday. UFJ, its smaller peer, was also cheered by its own numbers and rose 17,000 yen to 457,000, a rise of 3.9%.

Elsewhere, investors moved to lock in recent gains. Chip sector bellwether Advantest was one of the casualties, clipped by 40 yen or 0.5% to 7970. Tokyo Electron trod water, level at 7830.

The Nikkei 225 added 18.55 points to 10,163.38. The benchmark index remains about 1000 points off its high for the year, hit last month.

In Sydney Aristocrat Leisure, the poker machine maker hit by four profit warnings this year, falling US sales, and the departure of its chief executive, saw a further drop even as it named a new boss.

The company shed early gains to fall one cent or 0.5% to A$2.04. Paul Oneile, formerly head of London-based United International Pictures, will take the reins next Monday.

Miners, trimmed yesterday amid strong local dollar concerns, staged a rebound. WMC Resources was better by one cent or 0.2% to A$4.7, while Rio Tinto firmed 33 cents or 1% to A$34.61. The All Ordinaries softened marginally, easing 4.4 points or 0.1% to 3194.30.

Minnow market the Philippines gained 9.78 points or 0.7% to end at 1344.38 as the Manila Government forecast growth in excess of 4% next year. Many investors remain concerned, however, about disruption that may come with a Presidential poll in 2004.