Market Summary 6th April 2013

Singapore shares ended lower on Friday because of concerns over U.S. economic data and a selloff in Hong Kong shares.

A rally in Japan after its central bank opted for aggressive easing measures is "not tricking down into the Singapore market because the Singapore investors are just segregating these issues," IG Singapore market strategist Kelly Teoh said.

"They're trading in advance of the nonfarm payrolls figure that will be coming out in the U.S. tonight. We've had some quite negative jobless data that came in below expectations."

The 30-share Straits Times Index ended down 8.02 points, or 0.2%, at 3299.78, for a 0.3% decline for the week. Volume was 3.16 billion shares valued at S$1.46 billion--up from Thursday's 2.91 billion shares valued at S$1.13 billion. In the broader market losers outnumbered gainers more than two to one.

China-related shares were mostly lower in the wake of a sharp selloff in Hong Kong. The Hang Seng Index ending down 2.9% primarily on worries about bird flu in China.

Hongkong Land dropped 1.6% to US$7.30, likely tracking a sharp selloff in its Hong Kong-listed property peers. China shopping-mall operator CapitaMalls Asia shed 1.0% to S$2.00.

Singapore Airlines fell 1.4% to S$10.70 and Genting Singapore lost 2.4% to S$1.45, likely weighed by sharp falls in Hong Kong-listed travel and gaming stocks on the bird-flu outbreak concerns.

Commodity plays Noble and Wilmar, which rely in part on commodity demand from China, shed 0.4%-1.2%.

Japan real-estate plays tacked on gains, likely riding on the coattails of a sharp rally in Japan-listed real-estate plays. The J-REIT index ended up 5.2%.

Saizen REIT, which has a diversified portfolio in Japan, added 3.1% to S$0.199, while Global Logistic Properties was up 2.7% to S$2.65.

Myanmar play Yoma gained 6.1% to S$0.79 after joining forces with a George Soros fund and Jamaica's Digicel to bid for a Myanmar telecom license.

Market Summary 23 March 2013

Singapore's shares ended the week on a negative note, on profit-taking spurred by continued worries over Cyprus' failure to cobble together a bailout deal.

The 30-share Straits Times Index ended Friday down 9.08 points, or 0.3%, at 3258.57 after spending much of the session wavering between positive and negative territories. For the week, the index was down 0.8%.

"It's going to continue to be stuck in a range until close to the next reporting season," which is in late April and May, said Roger Tan, CEO at SIAS Research. "Some profit-taking is taking place while investors look for a more attractive re-entry point," he said. "Europe will continue to be an excuse for investors to either take profit off the table or wait for markets to go down lower to buy." "The Cyprus issues just show European woes are not over. It's more stable but it's not over. But because fundamentals are still okay for the rest of the world, I think markets will still go up the rest of the year," Mr. Tan added.

Volume traded was 5.52 billion shares valued at S$1.41 billion. In the broader market, gainers outnumbered losers 1.4 to one.

Index heavyweight SingTel slid 1.4% to S$3.55, retracing some of Thursday's 3.5% gain.

Genting Hong Kong ended flat at US$0.455 after reporting 2012 net profit rose 8.9% from a year earlier to US$198.4 million. CIMB said the results of Genting Hong Kong's three units, Star Cruises, Resorts World Manila and Norwegian Cruise Lines, were in line with its expectations operationally, but lower than expected interest costs boosted the bottom line above its expectations.

Market Summary 15 March 2013

Singapore shares ended off their early highs Friday, as a boost from data showing U.S. jobless benefit claims unexpectedly fell last week faded amid a selloff in property counters.

"Any sign that the number one economy in the world is starting to fire again gives traders and everyone else an opportunity to say 'why not [enter the market]?'," said Song Seng Wun, head of research at CIMB. But he noted that "some people are becoming a little more nervous from a technical standpoint. Resistance levels are more challenging."

The 30-share Straits Times Index ended up 6.55 points, or 0.2%, at 3286.05 but well off its intraday high of 3305.77, as the index failed once again to hold above resistance at 3300. The index ended down 0.1% for the week.

Volume surged to 7.19 billion shares valued at S$2.89 billion compared with Thursday's 5.96 billion shares valued at S$1.42 billion.

Property stocks were hit by a double whammy of data showing the city-state's February private home sales slumped 65% from the previous month and as property counters sold off in the Hong Kong market on expectations of government tightening measures.

The Lunar New Year holiday and recent cooling measures likely damped the Singapore sales data, Religare Capital said in a note. "Recent news already points toward a pickup in launch activity again in March, and it might turn out to be another strong month for sales," it said. "Should sales continue to stay at these elevated levels, we believe that the government will act again to clamp down on demand."

CapitaLand dropped 4.2% to S$3.40, City Developments fell 3.7% to S$10.76 and Hongkong Land shed 3.3% to US$7.01.

Olam dropped 3.0% to S$1.625 after a large block of shares changed hands in late trade. During the session, the stock touched a high of S$1.73, its highest level since short seller Muddy Waters issued a critical report on the company in mid-November.

Wilmar ended down 1.5% at S$3.32, also weighed by a large block of shares changing hands in late trade.

Helping to support the index, the heavily weighted banks gained, with UOB, OCBC and DBS tacking on 1.0%-1.8%.

Market Summary 9 March 2013

Singapore's shares took a breather Friday as markets likely thought it prudent to lock small gains after a steep rise over the previous two days.

The 30-share Straits Times Index closed 0.3%, or 9.01 points, lower, at 3,289.53 after breaching the 3,300 psychological barrier briefly for the first time since Feb. 21. Volumes were lower at 3.51 billion shares compared with 4.3 billion shares that changed hands on Thursday. Losers outnumbered gainers 266 to 181.

Still, the benchmark ended the week with a 0.6% gain.

Elsewhere in the region, Japanese stocks climbed for the seventh successive session to touch a fresh multiyear high as the yen fell against the U.S. dollar on anticipation of aggressive monetary policy easing.

Asian markets were also waiting for China's monthly slew of economic data over the weekend. China will deliver data on inflation, industrial output and retail sales, which prompted some traders to refrain from taking fresh bets going into the weekend.

Property stocks were among the poor performers Friday amid recent measures by China and Singapore to curb rocketing real estate prices. CapitaLand shed 2.9% to close at S$3.62 while City Developments was down 1.8% to S$11.20, forming the worst performers among benchmark stocks.

Commodity stocks were mixed with Golden Agri-Resources down 0.8% to S$0.605 and Wilmar International down 1.2% to S$3.43. However, Noble Group eked out a 0.4% gain to close at S$1.18.

Rig builders gained Friday on hopes that a global economic recovery may spur investments in exploration and production. Sembcorp Marine added 0.7% to close at S$4.54 while its parent Sembcorp Industries was up 0.6% at S$5.22. Keppel Corp. gained 0.6% to S$11.85.

Market Summary 23 February 2013

Shares in Singapore closed unchanged Friday as some traders took advantage of a sharp fall earlier in the day to buy.

The 30-share Straits Times Index closed 0.53 points higher at 3288.13 after opening in the red and slipping to as low as 3274.86. Shares had fallen 0.6% on Thursday, breaking a three-day winning streak. Gainers outnumbered losers 263 to 196 and volume was lower at 4.32 billion shares compared with 5.75 billion on Thursday.

Other Asian markets were mixed following poor economic data from Europe, while Australia rebounded from Thursday's heavy selling. Most markets on the back foot early Friday following the release of weaker-than-expected manufacturing purchasing managers' indexes from Germany and France. The absence of further bad news during Asian trading however, meant that regional markets were able to turn positive or pare their losses as the session progressed.

In Singapore, Genting Singapore was the top performer, up 3.7% at S$1.555 after the casino resorts operator Thursday evening reported a 38% drop in fourth-quarter net profit mainly because of one-time costs. However, investors likely felt confident about buying as Genting flagged a cautiously optimistic outlook as its premium-gambler business showed signs of recovery.

Noble Group closed 2.1% higher at S$1.19 after announcing a deal to sell a majority stake in a proposed palm plantation in Papua in east Indonesia to Wilmar International.

Wilmar, which separately announced a 4.7% decline in its fourth-quarter income, closed 1.4% lower at S$3.63.

Sembcorp Marine was the worst performer among the 30 STI stocks after the rig builder reported weaker income after the market closed on Thursday. Shares closed 4.7% lower at S$4.51. Shares of the parent, Sembcorp Industries, were also pulled lower by 4.0% and closed at S$5.24.

Market Summary 16th February 2013

Singapore's shares rose slightly this week, but slipped Friday in a relatively muted reaction to data showing the euro zone's economy contracted in the fourth quarter.

"Most people are fully aware across the globe that the recovery we're going through is relatively anemic," said Jason Hughes, head of premium client management at IG Markets Singapore. "We're sort of desensitized to a certain extent to a proper knee-jerk reaction, but given soft leads from Europe, it's led to declines in Asia."

Confidence doesn't appear to be badly affected, with not much selling on the books and people using dips to increase positions, he added.

The 30-share Straits Times Index ended Friday 7.40 points, or 0.2%, lower at 3283.07, finishing the holiday-shortened week with a 0.4% gain. Volume remained skewed toward penny stocks, with 6.98 billion shares valued at only 1.77 billion Singapore dollars changing hands.

"The fundamentals are quite okay," said Ng Kian Teck, an analyst at SIAS Research. "The index is at high levels. We're seeing a bit of profit-taking."

OCBC ended 0.4% lower at S$9.99 after reporting its fourth-quarter net profit rose 12% on year to S$663 million. While results were slightly above expectations, the broader market was pulling back, said Jonathan Koh, an analyst at UOB KayHian. OCBC's net interest margin contracted 5 bps from the previous quarter, he noted: "The same contraction we saw at DBS, we now see at OCBC. Some investors may take this negatively." Other financials also fell. UOB ended 0.3% lower at S$19.32, while DBS slipped 0.1% to S$15.00.

Commodity stocks were mostly lower, with Olam shedding 1.5% to S$1.64, Noble falling 1.2% to S$1.19 and Wilmar losing 1.1% to S$3.66.

On the upside, rig builder STX OSV tacked on 3.6% to S$1.285 after announcing a trifecta of contract wins to build offshore subsea construction vehicles for Norwegian companies: a 600 million Norwegian kroner contract from Solstad Offshore, a NOK800 million contract from Farstad Shipping and one from DOF Subsea for an undisclosed amount. "We view the new orders positively, as the vessels are based on STX OSV's designs and margins on these orders could surprise on the upside," OSK-DMG said in a note.

By the Way, GONG XI FA CAI

Market Summary at 2 Feb 2013

Singapore shares shrugged off some lower-than-expected China data to end at a fresh more than two-year high Friday with better-than-expected euro-zone manufacturing data likely offering a fillip in late trade.

The 30-share Straits Times Index ended up 8.48 points, or 0.3%, at 3291.14, its highest close since November 2010; the index is up 0.7% for the week.

Shares spend much of the morning slightly in the red after China's official purchasing managers index for January came in at 50.4--below December's 50.6 and the 51.0 estimate from a Dow Jones poll of economists.

"It doesn't really suggest that the recovery will be taking a turn for the worse. What it merely suggests is that there is probably a bit more risk and uncertainty surrounding the recovery and the pace of the recovery. It doesn't really change our underlying assumptions that the economy has stabilized," said Thomas Lam, group chief economist at OSK-DMG. "My suspicion is that you don't want to really overreact to that. It did come in weaker, but at the same time, it's still marginally in expansion territory," he said. He noted markets are also awaiting the key U.S. nonfarm payrolls report, due later Friday.

In late afternoon trade, shares likely got a fillip from a rally in the euro after euro-zone PMI for January came in at 47.9, up from 46.1 in December and above the 47.5 expected.

But volumes slipped, with 3.23 billion shares valued at S$1.64 billion changing hands, down from Thursday's 3.91 billion shares valued at S$2.08 billion.

"The speculators are slightly more cautious, with the data and with the level of the STI right now," said Ng Kian Teck, an analyst at SIAS Research, noting the STI's technical indicators are overbought.

Shopping-mall operator CapitaMalls Asia was the best-performing index component, climbing 3.7% to S$2.24, with an analyst saying the rise was on a Citigroup report saying the stock is its preferred pick among China retail landlords and adding the stock to its Focus List. "CMA is poised to harvest multiyear gains from sustained investment in the China consumer growth story, while earnings will be anchored by recurring income in Singapore," Citigroup said.

SingTel ended flat at S$3.50 in spite of 32%-owned associate Bharti Airtel reporting its fiscal-3Q13 net profit dropped 72% on-year to INR2.84 billion, sharply below the INR7.96 billion average forecast from a Dow Jones poll. "We have been paring down our expectations for Bharti" as well as SingTel's other associates, said Carey Wong, an analyst at OCBC.

Casino operator Genting Singapore shed 1.6% to S$1.525, erasing some of Thursday's 5.8% rise. "While its share price reacted positively to the news of Marina Bay Sands' earnings, investors may want to take profit ahead of its results on Feb. 21," said Maybank-Kim Eng, in a note. While MBS 4Q12 results were decent, driven by VIP volume growth, "the same may not necessarily be true of Genting Singapore."

Market Summary 26th January 2013

Singapore shares closed at a more than two-year high on Friday after stronger economic data in the world's two biggest economies boosted sentiment.

The Straits Times Index closed 0.6%, or 20.92 points, higher at 3,269.31, its highest intraday level. That was also the highest since Jan. 6, 2011. Volumes were lower at 3.13 billion shares compared with 3.62 billion on Thursday. Gainers outnumbered losers 296 to 174.

The local market was helped by signs of stronger manufacturing activity in China after the preliminary HSBC Manufacturing Purchasing Managers Index rose in January. It was also buoyed by falling applications for jobless benefits amongst U.S. workers to 330,000, the lowest level in five years, according to a U.S. Labor Department report published Thursday.

Singapore's industrial output fell less than expected in December, as a boost in production of drugs and medical devices helped offset another slow showing in electronics. Factory output was down 0.6% from a year earlier, the Singapore Economic Development Board said Friday, not nearly as steep a fall as economists expected.

OCBC Investment Research analyst Carey Wong said there are signs of inflows into equities from fixed income products as some investors shift into a risk-on posture. "There's some sense that perhaps interest rates [will] rise sooner than expected, and some in the market are preempting that by switching out of bonds into stocks," he said.

Wilmar International was the top performing stock as investors were likely attracted to the commodities supplier that gets a large part of its revenue from China. Shares rose 3.8% to close at S$3.84. Olam International added 0.9% to close at S$1.63 while Noble Group ended the day with a 0.8% gain at S$1.225 amid signs of an improving global economy.

Real estate stocks that were battered by a new set of property cooling measures announced by Singapore earlier this month, were also among prominent gainers. CapitaLand advanced 1.0% to S$3.98 and City Developments gained 0.4% to S$11.30.

Singapore Telecommunications, considered a safer stock because of the stable nature of its business, fell 0.6% to S$3.45.

Market Summary for 18th January 2013

Singapore shares ended higher Friday buoyed by positive China GDP growth figures and the expectation of further signs of improvement in the U.S. economy next week.

The 30-share Straits Times Index ended up 17.02 points, or 0.53%, at 3212.12--close to its highest level for the day.

The gains were in line with regional bourses which got a boost from a brightening Chinese economy as China reported 7.9% on-year GDP growth in the first quarter--the first such on-year rise since the fourth quarter of 2010.

U.S. corporate earnings and economic data will set the tone, said Ng Kian Teck, an analyst at SIAS Research. U.S. December existing home sales data are due Tuesday and new house price data Wednesday. "We expect to see further recovery in U.S. new and existing home sales and home prices data," Macquarie analysts wrote in an investor note.

Global Logistic Properties Ltd., very active as a warehouse developer in China, was among the biggest gainers in the STI adding 1.1% to close at S$2.75. The stock got upgraded Friday by Daiwa who wrote that the company's "unwavering focus on developments paves the way for strong EPS growth from FY15."

Property stocks--which have had a bumpy ride since the Singapore authorities introduced new property curbs last week--slid back again, with City Developments Ltd. the biggest decliner among STI components. It shed 1.20% to close at S$11.40.