Large Cap S-Chips Ride High On China Index Rally

Selected Singapore-listed China plays, or S-chips, making good gains as rally in China indexes support local market. Big S-chip gainers include Yanlord (Z25.SG) +7.0% at S$1.98, Synear (Z75.SG) +6.0% at S$0.44, Bio-Treat (B22.SG) +5.6% at S$0.285, Ferrochina (F33.SG) +5.4% at S$1.17. Outperformance of recently launched FTSE ST China Top 20 index vs wider FTSE ST China index, suggests investors favoring large cap China plays over smaller caps; launch of new index may attracted buying interest; FTSE ST China Top 20 +2.3% at 413.56 vs FTSE ST China +1.3% at 406.79 (STI +0.9%). "The new China top 20 index might be causing more people to take a look at these stocks," says trader at local house. Charts show decent traded volume, oversold signals from technical indicators; suggests stocks may have tad more upside.