Singapore stocks end flat as concerns over Spain subside

Singapore shares closed 0.03 percent higher on Friday on hopes that the economic reform and budget plans unveiled by Spain will help the debt-saddled nation manage its debt imbalances. Spain announced a detailed timetable for economic reform and a budget based mostly on sharp spending cuts rather than tax hikes. Madrid is talking to European Union authorities on the terms of a possible aid package, which would pave the way for initiating the European Central Bank\'s bond-buying program aimed at easing the country\'s borrowing strains. Spain also faces a Moody\'s credit rating review this week and the release of a stress test of its banking sector on Friday which will reveal how much more money is needed to recapitalize its banks. OCBC Bank said it \"expects risk appetite levels to remain somewhat supported today although the fragility of this environment remains apparent.\" \"We remain wary of complacency given that Euro-zone conditions remain on thin ice,\" the bank said. Singapore\'s benchmark Straits Times Index rose 0.91 point, or 0. 03 percent, to close at 3,060.34. Trading volume was 1.57 billion shares worth 1.51 billion Singapore dollars (1.23 billion U.S. dollars). Advancers outnumbered decliners 230 to 209, while 519 stocks did not move. Ascendas India Trust sank 6.7 percent to 76.5 Singapore cents. It said it is planning a private placement at 72 Singapore cents per new unit to raise gross proceeds of up to 100 million Singapore dollars. Ascott Residence Trust ended flat at 1.255 Singapore dollars. It said it had agreed to buy the 166-unit Madison Hamburg in Germany for 37.5 million euros. Ezra shed 0.8 percent to 1.22 Singapore dollars. The Singapore offshore services firm said it had received strong support from its shareholders for the proposed distribution of Triyards Holdings shares. Shareholders will receive one Triyards share for every 10 Ezra shares. Ezra plans to list Triyards, its engineering and fabrication unit, on the Singapore Exchange in October. Fraser and Neave dipped 0.1 percent to close at 8.88 Singapore dollars. According to a report by the Nikkei business daily, Kirin Holdings is expected to sell its 15 percent stake in Singapore\'s Fraser and Neave for 1.54 billion U.S. dollars. Thai Beverage and TCC Assets Limited, which together have 30.7 percent of Fraser and Neave, have made a 7.2 billion U.S. dollars offer to buy out the remaining stake held by other shareholders. Among top gainers, City Development rose 1.2 percent to 11.74 Singapore dollars, while Jardine Cycle and Carriage became one of the top losers by dropping 0.3 percent to 48.10 Singapore dollars. (1 U.S. dollar = 0.772 euro, 1 U.S. dollar = 1.22 Singapore dollars)