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.
"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
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