Singapore's benchmark Straits Times Index closed 0.8%, or 21.37 points, lower at 2,737.89. For the week, the index was down 0.3%. "The STI ends the week as it started it, in the red and with plenty of downside risk ahead of a crucial Greek election," said Avis Wang at IG Markets Singapore. Apart from disappointment over Bernanke's comments, he said that "there also seems to be a degree of caution ahead of a swathe of economic data due out of China this weekend," he added.
Losers across the market outnumbered gainers 235 to 87 and volumes were lower at 918 million shares compared with 993 million Thursday. Among blue chips, losses were widespread with only four members of the STI closing in positive territory.
Banks were lower across the board, with United Overseas Bank losing 0.7% to 17.32 Singapore dollars, DBS Group slipping 1.3% to S$13.05 and Oversea-Chinese Banking Corp. losing 0.2% to S$8.25.
Supply-chain manager Olam International was a notable decliner, shedding 2.7% to close at S$1.625, after announcing late Thursday that it has acquired Nigerian dairy-goods company Kayass Enterprises SA for about US$66.5 million. Analysts, however, said the acquisition, which is part of Olam's ongoing M&A strategy, was small and therefore not a major factor for the share price. The losses were instead likely a result of profit taking after the stock had risen 9.2% over the previous three sessions, following a fall of around 30% in May. An analyst at CIMB said that the company was "milking the Nigerian market" and strengthening its packaged-food business with the acquisition, which it called "a good fit."
Casino group Genting Singapore ended 4.3% lower at S$1.435, after it confirmed it had taken a stake in Australian-listed casino company Echo Entertainment, without revealing the size of the stake. Confirmation that Genting has a stake in the Australian company has sparked speculation that it could be set to launch a takeover bid. Such a move would, however, set up a battle with Echo's largest shareholder and rival casino company Crown Ltd., which has a 10% interest in Echo.
Just to Share.
The shares market looks declining now, those major factors affecting the shares market looks unpleasant to me. Firstly, the China's industrial output grew at a slower than expected 9.6% year on year in May, a better result then previous month but still near three year lows. It is lower then forecasts 9.9% in a Dow Jones Newswires poll of 14 economists according to news.
Secondly, USA rises their concern toward EURO Zone Crisis. Their action created anxiousness toward investor. Buying confidence remains low as investors will choose to observe and stay away from current market situation until any fruitful or positive news to regain the rally.
Thirdly, EURO Debt Crisis remains unsolved even the EURO Zone members are trying so hard to resolve the issue. EURO zone is busy grappling with Spain's banking crisis and the Greek election gets closer. It is a tough battle and USA rising their concern toward this. It can be a positive result for USA involvement but it also can be a negative impact if USA choose to stay aside from this. At the moment, USA just rising their concern as worrying EURO Debt Crisis may affect their economy at long term but have not come to the conclusion for lending their hand or not? USA is the world largest economy, their involvement definitely will spark the situation.
The shares market remains uncertain, more rooms for downturn are sight for forthcoming few weeks. It is advisable to observe and monitor rather then take action now.
No comments:
Post a Comment