Singapore shares closed 0.5 percent higher on Friday, following strong U.S. housing and labor market data as well as better-than-expected gross domestic product growth figures from China.
Investors reacted positively to China's gross domestic product growth figures for the fourth quarter, which showed a 7.9 percent year-on-year rise, compared with market expectations for a 7.8 percent rise. The data release also included industrial production figures, which increased by 10.3 percent in December, in line with market expectation.
Phillip Securities Research said U.S. economic data has been encouraging, with good prints for jobless claims, housing starts, industrial production. The research house added that this is a year for stocks and maintain overweight on Chinese bourses including Hong Kong, as well as Singapore, Thailand and the Philippines markets.
"We could see the index testing 3,200 points and 3,250 points resistance level while the downside support is pegged at 3,180 points and 3,150 points level," SIAS Research said.
OCBC Investment Research said the Straits Times Index may remain stable around its current levels, with support at 3,200 points and resistance near 3,230. The research house added that people may be more keen to take profits or at least lighten their exposure.
Singapore's benchmark Straits Times Index rose 16.12 points to 3,211.22 points. Trading volume was 5.03 billion shares worth 1.52 billion Singapore dollars (1.25 billion U.S. dollars). Advancers outnumbered decliners 305 to 143, while 515 stocks finished unchanged.
CapitaMall Trust shed 0.5 percent to close at 2.16 Singapore dollars. The trust which owned shopping malls in Singapore said its fourth quarter distributable income rose 5.7 percent to 79.8 million Singapore dollars from a year ago, helped by higher rental income.
Sembcorp Industries gained 0.4 percent to finish at 5.36 Singapore dollars. The conglomerate signed a 20-year water purchase agreement with the Abu Dhabi Water and Electricity Company, allowing it to expand its seawater desalination capacity in the United Arab Emirates.
Among the top gainers, Jardine Cycle and Carriage rose 1.3 percent to close at 49.3 Singapore dollars, while Jardine Strategic became one of the top losers by falling 0.2 percent to close at 36.25 U.S. dollars. (1 U.S. dollar = 1.22 Singapore dollars)
