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.

Market Summary 29 December 2012

Wish Everyone A Happy New Year!

Singapore's shares ended 2012's penultimate session in the green, but while hopes the U.S. would avoid dropping off the fiscal cliff as negotiations are set to resume bolstered the market, caution persisted.

"The markets are hopeful," said Alvin Liew, senior economist at UOB. But he added, "Let's not hold our breath." He expects lawmakers may patch up a temporary deal, perhaps a three-month extension. "Judging by the last two years of American politics we've seen so far, you wouldn't be too hopeful of a grand bargain coming out in the next few days. If so, it would be the biggest surprise of 2012."

The 30-share Straits Times Index ended up 7.87 points, or 0.2%, at 3191.80, totting up a total 0.9% gain for the holiday-shortened week. The index has risen 23 of the past 29 sessions, for a total 8.4% gain over the period.

"Should a fiscal deal--even a more modest one--be hammered by next Monday (Dec. 31), we could still see a strong impulse move up," said Ng Weiwen, macro analyst at Phillip Securities, in a note. "Bulls want to charge higher but lack the conviction to do so amid uncertainties over the looming U.S. fiscal cliff."

But Jason Hughes, head of premium client management at IG Markets Singapore, noted "volumes remain quite subdued and you potentially see people realigning their portfolios before the end of the year before taking Monday and Tuesday off and starting afresh in 2013." Volume was scant at 2.19 billion shares valued at only 946.6 million Singapore dollars ($774.1 million). In the broader market, gainers topped losers more than two to one.

Olam climbed 2.3% to S$1.56, coming off an early drop to S$1.485 despite going ex-rights as Singapore state investment company Temasek Holdings continued to increase its holding in the supply-chain manager, with its stake rising to 19% from 18%. Temasek raised its stake to 18% from 16.3% last week. "In our judgment, the company represents a reasonable attractive investment over the long term," Temasek spokesman Stephen Forshaw said by telephone Friday.

Keppel rose 0.4% to S$11.00 after announcing it landed three new contracts valued at a combined S$420 million, bringing year-to-date order wins to S$9.9 billion.

STX Pan Ocean rose 11.4% to S$4.70, despite trading ex-dividend, after Morgan Stanley and Standard Chartered were appointed lead managers for STX group's planned sale of its stake in the bulk shipper. STX Pan Ocean's Korean shares ended up by the 15% daily limit at 4,715 won ($4.40).

UOB ended down 0.3% at S$19.82, well off its early 3.5% drop to S$19.18, the likely driver for the STI's intraday slip into negative territory. Amid low volume, UOB's traded price suddenly made a large drop from one trade to the next at 0356 GMT, with the price moving to S$19.20 from S$19.52, which could suggest a fat-finger error. "We're definitely seeing some strange moves" in the market, IG Markets' Hughes said, citing low volume and end-of-year portfolio moves.

Market Summary 15th December 2012

Singapore's shares powered ahead to set yet another 16-month high Friday, bolstered by positive economic data from China spurring a strong rally on the mainland.

The preliminary HSBC China Manufacturing PMI for December climbed to a 14-month high of 50.9, up from November's 50.5 final reading. The data was slightly above the market's expectation for 50.8, said Suan Teck Kin, treasury economist at UOB. "The data suggest the bottoming out process has already taken place," he said, adding "if it's positive for China, it should be positive for the rest of the world as well, especially for Asia."

The 30-share Straits Times Index ended up 11.88 points, or 0.4%, at 3168.43, tacking on 2.0% for the week. The index has now risen 17 of the past 20 sessions, rallying 7.6% from its Nov. 16 trough. Volume was 2.13 billion shares valued at S$1.20 billion, in line with Thursday's level.

Among stocks with exposure to China's recovery, CapitaLand ended up 1.1% at S$3.76, Global Logistic Properties tacked on 3.0% to S$2.79 and Yanlord rose 4.8% to S$1.54.

Several STI components jumped despite a dearth of news, with Noble rising 1.8% to S$1.15, City Developments climbing 3.5% to S$12.92 and Genting Singapore gaining 1.9% to S$1.37.

"If fund managers do have a need to put in a bit of window dressing, they'll probably focus on all the underperfoming high-beta stocks," said Carey Wong, an analyst at OCBC. "In the fourth quarter, all the high beta underperformers put in a good show," he said. "It's nothing to do with fundamentals."

Gallant Venture ended flat at S$0.28 after it said it would acquire 52.4% of auto-parts company Indomobil Sukses Internasional for US$809.3 million. "It's left pocket to right-hand pocket," said Ferry Wong, an analyst at Citigroup; he said both companies are essentially owned by the Salim Group. "I don't expect Gallant Venture to add expertise on the operation side," said Wilianto Ie, an analyst at Nomura. "It might change the ability of Indomobil to find cheaper funding," he said, adding that "there has always been a presumption that if you are listed in Singapore, you have better access to funding. The financing business of Indomobil will need to issue a lot of bonds."

TT International ended up 20.3% at S$0.178 in high volume accounting for more than 9% of shares changing hands on the SGX after the company said it entered an agreement with Prima BB Ltd. and Utraco Investment Pte. to develop Big Box, a mega-warehouse retail project in Singapore, with a combined investment of S$92.0 million.

Market Summary 8th December 2012

Singapore's shares ended higher Friday amid positive cues from Wall Street as initial U.S. weekly jobless-benefit claims decreased.

The 30-share Straits Times Index ended up 28.91 points, or 0.9%, at 3107.11, after touching an intraday high of 3110.51, within spitting distance of its 3110.86 year-to-date high. The index is up 1.2% for the week; it has risen in 12 of the last 15 sessions.

"Traders anticipated some good numbers out of the Chinese economy this weekend. The local market was also buoyed by better-than-expected U.S. jobless claims last night," said Justin Harper, market strategist at IG Markets Singapore, in a note, citing China's retail sales and industrial production as among the data due Sunday. "For this bullish undertone to spark life into an end-of-year rally, we will need to see more progress on U.S. fiscal cliff talks very soon. And a strong read for tonight's non-farm payrolls report would help, once the Superstorm Sandy effect is factored in," he added.

Volume ticked up slightly from Thursday, with 1.95 billion shares valued at S$1.51 billion changing hands.

Sembcorp Marine gained 2.0% to S$4.51 after landing a contract worth US$434 million to construct two jack-up rigs for Mexico's Integradora de Servicios Petroleros Oro Negro, with delivery scheduled for the fourth quarter of 2013 and the first quarter of 2014. "(The pricing is) slightly higher than what we expected, but for the early delivery, it's in line with expectations. I think the margins on these two rigs will be pretty good," an analyst said, noting Oro Negro is a new client.

Hongkong Land rose 2.4% to US$6.76. Macquarie added the stock to its "Marquee Ideas" high-conviction Buy list. Other property plays with China exposure also rose, with CapitaLand adding 3.4% to S$3.69. "There was a boost for property stocks with links to China, such as CapitaLand, after the Chinese government said urbanisation would be a key theme for the next decade," Mr. Harper said.

Olam received a respite from its recent declines, ending up 0.7% at S$1.46, but it remains down 16.1% since Nov. 19, when negative comments from short seller Muddy Waters' founder Carson Block first surfaced. Macquarie downgraded Olam to Neutral from Outperform. "Muddy Waters' call for insolvency is a stretch. But we must accept that Olam's transformation projects are taking longer than we expected to come through," the house said in a note.

Singapore Press Holdings was the worst-performing STI component, shedding 4.1%, or 17 Singapore cents, to S$4.01 as it went ex-dividend for its planned 17-cent dividend payment. UOB KayHian said its monthly page-count monitor of SPH's flagship Straits Times suggests decent advertising-spend growth of 3%-5% on year in September-November. But the house kept a Hold call as it expects the muted advertising revenue growth to cap any gains.

Market Summary 1st December 2012

Singapore's shares ended higher Friday, turning in gains for nine sessions out of the past ten, as the market shrugged off negative rumblings over negotiations to avert the U.S. fiscal cliff.

Republicans on Thursday rejected President Obama's opening budget-talk bid and House Speaker Boehner said he was "disappointed" with the lack of progress. "The market is prepping for an amicable resolution and attributing the comments from the Republicans as just that. It's not translating into any (market) reaction," said Liu Jinshu, deputy lead analyst at SIAS Research. "The positive is that they've started to talk. It's different from August 2011. This time around, the White House is taking the initiative. If the Republicans reject the package, the blame will be on them," he said. But in a note, Maybank warned "the mood of the crowd can turn on a dime, and we think it best to resort to watching the charts and headlines closer in the short term."

The 30-share Straits Times Index ended up 24.05 points, or 0.8%, at 3069.95, its highest close since Oct. 8. The index tacked on 2.7% for the week. Volume was strong at 2.32 billion shares valued at S$2.36 billion, indicating market players are refocusing on blue-chips after their recent infatuation with penny plays.

But Yeo Kee Yan, market strategist at DBS Vickers, said the gains might not last. "I don't see the index continuing to rise next week. At best sideways, or giving back some of this week's gain," he said. He added that gains will likely be capped until there's a resolution to the fiscal cliff, and said the index's near-term resistance around 3090-3100 was very close. He also expects the traditional year-end lull period to put a damper on gains, with shares picking up again only around the Christmas period.

Olam tacked on 1.0% to S$1.575, extending Thursday's 4.0% rise in strong volume. An analyst said insider buying by the CEO and two directors are "a strong show of support," while there was nothing new in short seller Muddy Waters' latest salvo against the company. Muddy Waters issued an eight-page response to Olam's 45-page rebuttal of the short seller's 133-page report accusing the commodities trader of a litany of failures, ranging from incompetence to malfeasance; Olam called the allegations "false and misleading" and has filed suit in Singapore on allegation of libel and slander.

Among other commodity plays, Golden Agri ended down 0.8% at S$0.66, erasing some of Thursday's 4.7% rise in strong volume accounting for 6.6% of shares changing hands on the SGX.

CapitaLand rose 0.9% to S$3.53. Citigroup said the company's S$505 million bid for a Bishan residential site adjacent to its current Sky Habitat project was a defensive move to prevent competing developers from under-cutting its price.

Genting Singapore advanced 2.4% to S$1.28 in strong volume, with large trade sizes suggesting institutional interest. "Some people believe that we're at the bottom of the earnings cycle for gaming around the region," an analyst said, adding another potential reason for the rise is "you've got pending political change in Japan. So people obviously get hopeful about potential legalization of casinos."

Market Summary at 17th November 2012

Singapore shares ended flat on Friday, surrendering gains in the closing minutes of trading after rising on bargain hunting.

Shares started weaker in early trading, after the government reported Singapore's gross domestic product contracted 5.9% in the July-September period from the previous quarter on seasonally adjusted, annualized terms, sharper than an October estimate of a 1.5% contraction. Although the Straits Times Index rose to an intraday high of 2,954.42 as investors sought bargains, the benchmark index ended 0.01%, or 0.29 point, lower at 2,945.63. Volume fell to 1.48 billion shares from 2.66 billion on Thursday, and gainers outnumbered losers 209 to 183.

The benchmark ended the week 2.1% lower.

However, some analysts said the Singapore stock market has likely bottomed. "Obviously, markets rightfully fear a number of crash-inducing events now, including the U.S. fiscal cliff, a euro-zone breakup, and a China hard-landing," CIMB said in a note. However, "markets have a habit of proving its worst fears, or its worst hopes, unfounded though. The fact that all these are expected means that it is unlikely to happen; if anything were to trigger a major crash, it has to be something not expected now." Several economists say they expect U.S. politicians to reach a deal by the end of the year to avoid sharp tax increases and spending cuts, popularly known as 'fiscal cliff.'

Fraser & Neave was the top performer, gaining 1.6% to close at 9.28 Singapore dollars (US$7.58) as rival Thai and Indonesian tycoons battled for the beer-to-real estate conglomerate. Thai billionaire Charoen Sirivadhanabhakdi's TCC Assets, which has submitted a bid for Fraser & Neave, is considering all options--including raising its offer--after Overseas Union Enterprise, controlled by Indonesia's Riady family, made a counter offer for the company Thursday, according to people with knowledge of the deal.

Stocks of several other companies that had been battered earlier this week clawed back. Wilmar International added 1.3% to close at S$3.16 after losing 1.6% earlier in the week and Noble Group gained 1% to close at S$1.06. However, Golden Agri-Resources closed 2.4% lower at S$0.60, as investors buying the stock now won't be eligible for dividend payment.

Global Logistic Properties was the biggest decliner among benchmark shares, shedding 2.7% to S$2.52 amid signs of economic trouble in Japan and China, which are its main markets.

10th November 2012

Singapore shares were flat Friday as encouraging economic data from China buoyed market sentiment, balancing worries about the looming U.S. deadline for striking a tax deal.

Chinese industrial production rose 9.6% in October from a year earlier, beating market forecasts and picking up pace from the previous month. The improvement in manufacturing "adds more fuel to the bottoming-out argument," said Justin Harper, a market strategist at IG Markets. Meanwhile, inflation in China moderated in October, showing that the government has room to further stimulate the economy if necessary. "This has caused stimulus junkies to start salivating at the prospect of more policy easing from the PBOC," said Mr. Harper.

But worries about the U.S. fiscal cliff weighed on Asian equities markets generally. Still, Singapore's 30-share Straits Times Index shed only 0.1%, less than regional counterparts like Hong Kong's Hang Seng Index, which was down 0.9% Friday, and Korea's Kospi, which lost 0.5%.

The STI ended 2.69 points lower at 3009.56. Psychological support at the 3000 level might have curtailed the STI's losses, as trade was "directionless" for most of the day, said SIAS Research analyst Ng Kian Teck. Volumes were lower with 1.27 billion shares changing hands compared with 1.72 billion Thursday. In the broader market, losers outnumbered gainers 263 to 135.

Noble Group plunged 7.8% to close at S$1.175, making it the biggest decliner among the STI components after its third-quarter earnings disappointed investors. UOB KayHian cut the commodity supply-chain company to a sell rating from buy, citing a weaker-than-expected performance in the agriculture and energy businesses, even though the company posted a net profit of US$75 million overall.

Wilmar climbed 1.6% to end at S$3.17, after reporting a 26% rise in third-quarter income.

OCBC crept 0.2% higher to end at S$9.10 as its third-quarter results, including a nearly fourfold increase in net operating profit, were in line with what the market was expecting.

26th October 2012

Singapore's shares ended the holiday-shortened week moderately higher, shrugging off negative cues from Wall Street as well as any dent in sentiment from the scrapping of the Dynasty REIT IPO.

"The only thing I can put my finger down to is news from yesterday, here in Asia, that the Chinese gauge of manufacturing, the HSBC and MNI, showed slight improvement in manufacturing activities. It gave those sitting on the sidelines a little added confidence to come in," despite poor European data, said Song Seng Wun, head of research at CIMB. "There's really nothing else. The earnings front isn't giving anyone any reason to go either way."

The 30-share Straits Times Index ended Thursday up 12.78 points, or 0.4%, at 3057.51. While the index eked out a 0.3% gain for the week, it remains stuck in recent ranges, unable to break above 3060 resistance. Volume was sleepy at 1.39 billion shares valued at only S$1.01 billion, heavily skewed toward penny plays.

Takeover target Fraser & Neave remained in the spotlight, ending up 0.3% at S$9.23 after TCC Assets extended its S$8.88/share offer for the conglomerate to Nov. 8 from the original Oct. 29 deadline. Volume in the shares was strong, with around S$43 million worth changing hands amid a series of large trades.

Singapore Airlines rose 0.3% to S$10.68, in line with the broader market, not reacting much to its plans to acquire 25 new Airbus aircraft in an order valued at US$7.5 billion and its plans to end non-stop Singapore-Los Angeles and Singapore-New York flights. Credit Suisse doesn't expect the aircraft orders to affect the carrier's finances much near term, but it says the impact of mothballing the non-stop Singapore-U.S. services will be more immediate. "The route cancellation is a tacit admission of the difficult trading that we think will be evident in Singapore Airlines' fiscal-2Q13 numbers on Nov. 2--particularly given its premium market exposure," it said in a note, adding it may raise earnings forecasts after the money-losing service is cancelled.

Hutchison Port Holdings Trust fell 4.3% to S$0.785 after reporting its third-quarter net profit fell 15.1% year-on-year to HK$601.7 million, with results around 13% below HPHT's prospectus projection amid weak U.S. and Europe trade demand. Jefferies downgraded the stock to Hold from Buy after the results missed its forecasts. "Facing tough macro headwinds, low quality volume growth and high capex requirements, we expect HPHT to cut its 2013 dividend by 10% from the 2012 level followed by a 2% cut in 2014. The recent 15% rally on yield-chasing trade is also a bit excessive in our view, without fundamental support," the house said.

20th October 2012

Singapore shares ended lower Friday, weighed by disappointing quarterly earnings reports in the U.S. and among Singapore companies.

Poor third-quarter earnings results from Google dragged U.S. stocks overnight and the downbeat mood appears to have spilled over into Asian and European markets. "I think the guidance is still looking a bit cautious," said Carey Wong, an analyst at OCBC. "That's why the market isn't really going anywhere." But signs of improvement in China's economy that emerged this week may buttress investor sentiment and support Singapore shares in future sessions, he added.

The 30-share Straits Times Index declined 11.44 points, or 0.4%, at 3048.92. Volumes were up with 1.8 billion shares changing hands, up from Thursday's 1.4 billion.

Lackluster earnings reports from some STI component companies also dented share prices. Singapore Exchange slid 0.7% to close at S$6.80 after reporting net profit fell 15% in the quarter ended September 30, on lower trading volumes.

Offshore rig-builder Keppel Corp. fell 0.9% to close at S$11.29, after it reported third-quarter profit fell 14.7% on-year. "While the company has been guiding for margins to come down for some time, we're seeing this play out," said Vincent Fernando, an analyst at Religare Capital, who kept the stock at Buy, but lowered his target price to S$12.80 from S$13.90. Another rig-builder, Sembcorp Marine Ltd., was the biggest decliner among STI components, falling 1.6% to close at S$4.86.

Bucking the general selling trend was Fraser & Neave Ltd., up 4.0% to close at S$9.29, after property firm Overseas Union Enterprise Ltd. said it is in talks to make an offer for the conglomerate. OUE's advance buoyed F&N shares as investors reckoned that the emergence of a new suitor would lead Thai billionaire Charoen Sirivadhanabhakdi to increase his S$7.2 billion bid.

F&N was the second-most active share by value traded, with S$105.6 million shares changing hands. It was eclipsed only by Indonesian coal play Geo Energy, which saw volumes of S$149.9 million in shares traded, and advanced 34% from its IPO price of S$0.325 to close at S$0.435.

Market Summary 13 Oct 2012

Singapore shares ended higher, tracking gains in some regional markets while the central bank's decision to keep its currency policy unchanged assured investors about the Singapore dollar's safe-haven status. However, traders and analysts said market participants could turn cautious in the coming weeks as the third-quarter earnings season kicks in.

The benchmark 30-component STI ended 0.3%, or 9.09 points, higher at 3041.75 points, with a total of 1.44 billion shares changing hands, up from 1.24 billion Thursday. The index ended 2.1% lower on the week.

"Capital flows into the Singapore dollar may continue as the SGD remains one of the safe-haven currencies in this world amidst the current uncertainties," UOB Economic-Treasury Research said in a note.

Earlier in the day, the Monetary Authority of Singapore unexpectedly kept its monetary policy unchanged and said it will continue to guide the local currency on its current appreciation path, as inflation concerns trumped a contraction in the economy in the third quarter.

Phillip Securities in a note said any gains in the Singapore stock market would be limited in the near term, adding that investors should take a "nimble" trading stance in the short term. "Over the next couple of weeks of corporate reporting season, forward earnings guidance as well as the economic outlook will prance to the forefront of investors' minds and dictate market direction," it said.

Shares were mostly mixed, with commodities stocks leading the gains. Wilmar International finished the day 3.6% higher at 3.17 Singapore dollars (US$2.58), as news that Malaysia is set to cut its export duty structure lifted investors' sentiment. "It's one of the better companies in terms of having feet in both Indonesia and Malaysia and (being) able to trade around any opportunities from" the potential tax change, an analyst said. Commodities companies Olam International gained 1.8% to S$1.95 and Golden Agri Resources rose 1.6% to S$0.645.

Fraser & Neave, which is currently the takeover target of Thai billionaire Charoen Sirivadhanabhakdi's TCC Assets, ended flat at S$8.89 after trading in positive territory for most of the day. Investors said they hope Mr. Charoen would raise his offer price of S$8.88 a share for the company.

Shares of DBS Group Holdings were up 0.3% at S$14.18, as the bank said after the market closed Thursday that it sold a 10.4% stake in Bank of the Philippines Islands to Ayala Corp. for US$616.4 million to boost capital before Basel III rules kick in next year.

The Singapore government's move last week to tighten the property market weighed on developers. CapitaLand was down 0.6% at S$3.16, while City Development lost 0.4% to S$11.52.

In the broader market, gainers dwarfed decliners 214 to 166.

6 October 2012

Singapore shares rose to a 14-month high tracking a regional rally Friday as investors cheered upbeat U.S. economic data and reassurances by the European Central Bank chief to support troubled euro-zone economies.

Underpinning the rally were better-than-expected weekly jobless claims and factory-order data in the U.S. as well as ECB President Mario Draghi's affirmation Thursday of the central bank's plan to purchase bonds from European states that request assistance.

The 30-share Straits Times Index ended 0.7%, or 21.23 points, higher at 3,107.87--its highest closing level since Aug. 3, 2011. For the week, the index closed up 1.6%.

However, while Thursday's U.S. jobless-claims data may have boosted expectations slightly, "much hope rests on tonight's lottery of the U.S. employment report," UOB Economic-Treasury Research said in a note. "The risk here is for a marginal beat to disappoint." "So here we sit again with the chance that risk assets could be boosted whichever way the number prints," as a weak reading might be seen as a precursor to more stimulus steps by the U.S. Federal Reserve, Jason Hughes, head of premium client management at IG Markets Singapore, said. "Cynics out there might be right in assessing that this non-farm number doesn't really matter all that much then."

Some cautiousness ahead of the U.S. jobs data due later in the global day helped drag trading volume down to 1.35 billion shares from 1.6 billion shares traded Thursday.

Gainers outnumbered decliners 277 to 163. Although only 14 of its 30 components ended higher, the STI held on to gains supported by strong performance by Jardine-linked heavyweights. Jardine Cycle & Carriage, the index's best performer, surged 6.9% to S$53.26, as analysts flagged an upbeat outlook for its 50.1%-owned Indonesian automotive unit, Astra. Credit Suisse expects Indonesia to pass low-cost green car regulations in the next six months, and Astra expects to launch its models by the second half of 2013, while its competitors are tipped to launch only at the end of 2013.

Palm oil company Golden Agri-Resources snapped a three-day losing streak, rising 2.4% to S$0.645 as crude palm oil prices recovered from recent sharp drops.

Some property stocks also gave the benchmark index a lift. CapitaLand and rival City Developments both extended recent gains, with CapitaLand ending 0.3% higher at S$3.30 and City Developments adding 0.2% to close at S$11.95. Hongkong Land rose 0.8% to end at US$6.08.

29 September 2012

Shares in Singapore closed little changed on Friday, giving up gains from earlier in the day as investors remained jittery about the sovereign debt crisis in Europe and didn't want to take fresh positions going into the weekend.

The 30-share Straits Times Index closed 0.91 points, or 0.03%, higher at 3,060.34 after touching as high as 3,073.08. The benchmark slipped into the red briefly. The STI finished the week with a 0.6% loss as enthusiasm about central banks injecting life into the world economy waned and concerns about some European nations' ability to push bitter reform measures came back to haunt markets.

Volumes were lower at 1.57 billion compared with 2.07 billion on Thursday and gainers edged out decliners 230 to 209.

"It is still too early to tell if this is but a minor relief rally in a larger down-move, or if the decline is indeed over and markets are reverting back to risk-on again," Maybank analysts said in a note. The benchmark shares likely lack the momentum to push the index out of its recent 3046-3088 band, especially as the weekend kept players from taking firm positions.

Relatively safer stocks, whose businesses are less affected by the global economy, were among the prominent gainers. Investors also like these companies because of their regular dividend payments.

ComfortDelGro was the top performer on the STI and the transport operator closed 2.4% higher at S$1.715. Singapore Technologies Engineering was the second best performing stock, up 2.0% at S$3.54. Mobile operator StarHub rose 1.4% to S$3.72.

Fraser & Neave closed little changed after its shareholders agreed, as expected, to sell their stake in a beer joint venture to Heineken for about $4.6 billion, ending a two-month takeover saga. Shares shed 0.1% to S$8.88.

Cyclical stocks, those most exposed to the global economic environment, had fewer takers. Golden Agri-Resources shed 0.8% to S$0.660 while Noble Group was off 0.4% at S$1.325. Genting Singapore settled 0.4% lower at S$1.37.