Singapore shares ended slightly stronger Friday, helped in part by some end of month and end of quarter tweaks to investor portfolios as well as some bargain hunting after the selloff of the past two sessions.
The 30-share Straits Times Index rose 0.6%, or 16.37 points, to 3,010.46. Over the first quarter, the index has risen 13.8% driven by renewed optimism about the recovery of the U.S. economy and stabilization of the eurozone's fiscal woes.
In the broader market, end of quarter volume was robust with 2.02 billion shares compared with 1.63 billion shares Thursday. Gainers outnumbered decliners 208 to 155.
Despite the modest gains, UOB said while "it is evident that the first quarter is certainly ending on a weak note, with increasing concerns about developments in China and Europe." OCBC expects support around the STI's recent 2,975 trough and then the 2,900 level. Resistance is likely at the 3,030 mark and the 3,075. "This rally has by no means been in a straight line with a few dips along the way," Avis Wang of IG Markets said. "But the general direction has been north which will please the bulls as we head into Q2. Profit-taking and some jitters, notably from China's slowdown, have stopped the STI pushing off the 3,000 level but risk is no longer a dirty word."
Cyclical stocks that were hit in Wednesday and Thursday's sell off made some recovery with Olam International up 1.28% at S$2.37, CapitaLand 0.7% higher at S$3.09 and Golden Agri-Resources up 0.7% at S$0.775. Neptune Orient Lines rose 1.1% to S$1.415.
Biomedical listing Cordlife, which debuted on the exchange Thursday, climbed 6.6% to S$0.725, adding to its 37% rise Thursday, as investors pushed up the first new listing of 2012.
Friday, March 30, 2012
Saturday, March 24, 2012
Market Summary 24 March 2012
Singapore shares ended higher Friday, bucking broader regional weakness on bargain hunting, while casino operator Genting Singapore outperformed on news two junket agents had been granted licenses to bring high rollers to its casino.
Other positive developments for investors in Singapore included data showing consumer price rises are easing. Singapore's consumer price index for February rose 4.6% from a year earlier compared with a 4.8% increase in January, and was below the 5.0% rise tipped in a Dow Jones Newswires poll of economists.
Regional markets were mostly lower Friday, hobbled by weak Chinese and euro-zone manufacturing data on Thursday, which weighed on U.S. markets and raised fresh concerns about slowing global growth.
The benchmark Straits Times Index closed 0.4%, or 10.83 points, higher at 2,990.08, although it closed the week 0.7% lower. Gainers outnumbered losers 193 to 160, and volume was a tad lower at 1.64 billion shares compared with 1.67 billion Thursday.
"Genting's strong performance and heavily traded shares helped keep the STI in positive territory this session, battling some strong headwinds of a weaker global economic recovery," said Avis Wang at IG Markets Singapore. Genting surged 6.8% to S$1.74, its highest level since November last year, and was the day's most active stock with over 355 million shares traded.
The gains came after news late Wednesday that Singapore's casino regulator had issued its first-ever junket-operator licenses to two Malaysian "International Market Agents." These operators will be allowed to bring high-rolling foreign gamblers to Genting Singapore's Resorts World Sentosa casino in exchange for commission, while providing them with credit.
Brokerage house CIMB said the long-awaited move "is undoubtedly a good start and a likely prelude to more approvals" for other junket operator licenses, which would boost VIP gaming at the casino.
Among other gainers on the STI, CapitaMall Trust added 2.3% to S$1.805 and Sembcorp Industries gained 2.4% to S$5.22.
In other company news, Hyflux closed up 1.7% at S$1.505 after active trade following news it has signed an agreement to build a seawater desalination plant in India's Gujarat state, costing around US$600 million. The company is partnering Japan's Hitachi Ltd. and Itochu Corp. to build the plant, which will be the largest of its kind in Asia. Citigroup said the contract "is a key development for Hyflux as it demonstrates that it is finally also able to operate large-scale projects in India."
Other positive developments for investors in Singapore included data showing consumer price rises are easing. Singapore's consumer price index for February rose 4.6% from a year earlier compared with a 4.8% increase in January, and was below the 5.0% rise tipped in a Dow Jones Newswires poll of economists.
Regional markets were mostly lower Friday, hobbled by weak Chinese and euro-zone manufacturing data on Thursday, which weighed on U.S. markets and raised fresh concerns about slowing global growth.
The benchmark Straits Times Index closed 0.4%, or 10.83 points, higher at 2,990.08, although it closed the week 0.7% lower. Gainers outnumbered losers 193 to 160, and volume was a tad lower at 1.64 billion shares compared with 1.67 billion Thursday.
"Genting's strong performance and heavily traded shares helped keep the STI in positive territory this session, battling some strong headwinds of a weaker global economic recovery," said Avis Wang at IG Markets Singapore. Genting surged 6.8% to S$1.74, its highest level since November last year, and was the day's most active stock with over 355 million shares traded.
The gains came after news late Wednesday that Singapore's casino regulator had issued its first-ever junket-operator licenses to two Malaysian "International Market Agents." These operators will be allowed to bring high-rolling foreign gamblers to Genting Singapore's Resorts World Sentosa casino in exchange for commission, while providing them with credit.
Brokerage house CIMB said the long-awaited move "is undoubtedly a good start and a likely prelude to more approvals" for other junket operator licenses, which would boost VIP gaming at the casino.
Among other gainers on the STI, CapitaMall Trust added 2.3% to S$1.805 and Sembcorp Industries gained 2.4% to S$5.22.
In other company news, Hyflux closed up 1.7% at S$1.505 after active trade following news it has signed an agreement to build a seawater desalination plant in India's Gujarat state, costing around US$600 million. The company is partnering Japan's Hitachi Ltd. and Itochu Corp. to build the plant, which will be the largest of its kind in Asia. Citigroup said the contract "is a key development for Hyflux as it demonstrates that it is finally also able to operate large-scale projects in India."
Monday, March 19, 2012
Market Summary 17 Mar 2012
Singapore shares closed lower Friday after retreating from a fresh seven-month and year-to-date intraday high, as regional markets traded cautiously ahead of the weekend.
Regional markets were mixed and sentiment was cautious Friday as investors grappled with conflicting signals on the health of the global economy, namely stronger U.S. economic data and signs that growth in China is slowing. U.S. data later in the global day, including inflation and industrial production numbers was also keeping players on their toes.
The 30-share STI closed 0.5%, or 15.16 points lower at 3,010.68, after hitting an intraday high of 3,035.78, its highest level since Aug. 4, 2011. For the week, the benchmark Straits Times Index has gained 1.6%. Gainers outnumbered losers 250 to 129 and volumes were higher at 1.36 billion shares compared with 1.28 billion Thursday.
Despite the local bourse struggling to push on after scaling multi-month highs in the last two days, DBS Vickers seems upbeat on the market's prospects. "While the STI is likely to be stuck in a range in the near-term, wild cards such as China monetary easing and a better U.S. outlook giving a boost to its cyclical sector will re-rate the market," the house said in a note. DBS Vickers has upgraded its market view on Singapore to Overweight.
Container shipper Neptune Orient Lines was the day's best performer, adding 1.4% to S$1.46. The shipper, which was deeply in the red in 2011, has seen its stock price rise 17% this year on hopes that shipping lines' recent rate hikes can last. "(However) whether the (recent) higher freight rates hold still depends on whether the shippers can continue to restrict capacity," said Carey Wong, an analyst at OCBC Investment Research.
Among Singapore's commodity traders, Olam International rose 0.9% to S$2.35 and its peer Noble Group closed flat at S$1.42. DMG & Partners said in a note that "expectations of less volatile cotton prices will help increase investors' interest in Olam" while it was less bullish on Noble due to its greater exposure to the more cyclical industrial commodities business.
Regional markets were mixed and sentiment was cautious Friday as investors grappled with conflicting signals on the health of the global economy, namely stronger U.S. economic data and signs that growth in China is slowing. U.S. data later in the global day, including inflation and industrial production numbers was also keeping players on their toes.
The 30-share STI closed 0.5%, or 15.16 points lower at 3,010.68, after hitting an intraday high of 3,035.78, its highest level since Aug. 4, 2011. For the week, the benchmark Straits Times Index has gained 1.6%. Gainers outnumbered losers 250 to 129 and volumes were higher at 1.36 billion shares compared with 1.28 billion Thursday.
Despite the local bourse struggling to push on after scaling multi-month highs in the last two days, DBS Vickers seems upbeat on the market's prospects. "While the STI is likely to be stuck in a range in the near-term, wild cards such as China monetary easing and a better U.S. outlook giving a boost to its cyclical sector will re-rate the market," the house said in a note. DBS Vickers has upgraded its market view on Singapore to Overweight.
Container shipper Neptune Orient Lines was the day's best performer, adding 1.4% to S$1.46. The shipper, which was deeply in the red in 2011, has seen its stock price rise 17% this year on hopes that shipping lines' recent rate hikes can last. "(However) whether the (recent) higher freight rates hold still depends on whether the shippers can continue to restrict capacity," said Carey Wong, an analyst at OCBC Investment Research.
Among Singapore's commodity traders, Olam International rose 0.9% to S$2.35 and its peer Noble Group closed flat at S$1.42. DMG & Partners said in a note that "expectations of less volatile cotton prices will help increase investors' interest in Olam" while it was less bullish on Noble due to its greater exposure to the more cyclical industrial commodities business.
Real Estate Investment Trusts average 12.4% total return in 2012 year-to-date
This week, there are a number of economic releases in the United States that will provide a report on the state of its housing market. Previous monthly releases have revealed marginal firming of housing starts and sales within the United States since late 2011.
Around the world, real estate and stock markets are synergetic with interest rates and both can be measured in performance yields. Moreover, real estate contributes an important sector to the stock market. This is particularly the case in Singapore.
Within the FTSE Straits Times Index (STI), there are five constituents from the Real Estate Investment & Services sector, and one Real Estate Investment Trust (REIT), represented by CapitaMall Trust. The five stocks that make up the Real Estate Investment & Services sector of the STI are Hong Kong Land, CapitaLand Limited, City Developments, Global Logistic Properties and CapitaMalls Asia. Together, CapitaMall Trust and the five constituents account for almost 15% of the STI market capitalisation
In the 2012 year to date, 22 REITs listed on Singapore Exchange have provided an average total return of 12.4%. This information is provided by Bloomberg which sums price appreciation (or depreciation) and the year-to-date dividend payouts. The YTD performance of each individual REIT is discussed further in a Market Update posted on My Gateway this morning.
From a pure price perspective the average gain of the 22 REITs has amounted to 9.6%. This is lower than the performance of the STI, which has appreciated 13.7% in the 2012 YTD. The defensive nature of the REITs means their return and risk should generally be lower than that of stocks. Last month a market update revealed that the price volatility in the first six weeks of the 2012 was one third lower for REITs than that of the STI stocks.
Obviously REIT is not a aggresive way to earn the money. Its defensive nature always make it a safer heaven to park your money regardless economic downturn or bright times. My opinion is invest in a diversity way rather then putting all your eggs in one basket.
Don't tell me you are small investor so you cannot divest your money into different portfolio. Small investor always lose when they intend to fly high even when they cannot stand properly. Be patient, then can go big!
Around the world, real estate and stock markets are synergetic with interest rates and both can be measured in performance yields. Moreover, real estate contributes an important sector to the stock market. This is particularly the case in Singapore.
Within the FTSE Straits Times Index (STI), there are five constituents from the Real Estate Investment & Services sector, and one Real Estate Investment Trust (REIT), represented by CapitaMall Trust. The five stocks that make up the Real Estate Investment & Services sector of the STI are Hong Kong Land, CapitaLand Limited, City Developments, Global Logistic Properties and CapitaMalls Asia. Together, CapitaMall Trust and the five constituents account for almost 15% of the STI market capitalisation
In the 2012 year to date, 22 REITs listed on Singapore Exchange have provided an average total return of 12.4%. This information is provided by Bloomberg which sums price appreciation (or depreciation) and the year-to-date dividend payouts. The YTD performance of each individual REIT is discussed further in a Market Update posted on My Gateway this morning.
From a pure price perspective the average gain of the 22 REITs has amounted to 9.6%. This is lower than the performance of the STI, which has appreciated 13.7% in the 2012 YTD. The defensive nature of the REITs means their return and risk should generally be lower than that of stocks. Last month a market update revealed that the price volatility in the first six weeks of the 2012 was one third lower for REITs than that of the STI stocks.
Obviously REIT is not a aggresive way to earn the money. Its defensive nature always make it a safer heaven to park your money regardless economic downturn or bright times. My opinion is invest in a diversity way rather then putting all your eggs in one basket.
Don't tell me you are small investor so you cannot divest your money into different portfolio. Small investor always lose when they intend to fly high even when they cannot stand properly. Be patient, then can go big!
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