blue chips banks and noble push singapores sti sharply lower 1063442015

Losses in blue-chips and banks led Singapore’s Straits Times Index to a sharp loss on the first day of the week as the local market took its cues from regional markets such as Hong Kong. Investors were unnerved by data that showed a poor export performance from Singapore in July.

The Noble Group Limited (SGX:N21) stock faced heavy selling pressure on its investor day, the proceedings of which commenced at 2 PM. The stock lost 7 per cent and closed at SG$0.455 after trading over 78 million shares.

Indices and sectors

The Straits Times Index (STI) ended 46.9 points or 1.51 per cent lower at 3,067.35, taking the year-to-date performance to -8.85 per cent.

The FTSE ST Mid Cap Index declined 1.13 per cent, while the FTSE ST Small Cap Index declined 1.06 per cent.

The Singapore Exchange traded a volume of 1,328.2 million shares valued at SG$1,055.5 million. Losers outnumbered gainers by 346/110.

Amongst the FTSE ST sectors, the big losers included maritime (-2.75 per cent), technology (-2.49 per cent), basic materials (-2.46 per cent), oil and gas (-2.25 per cent), financials (-1.67 per cent) and telecommunications (-1.22 per cent). There was no gaining sector on the day.

Stocks

Singapore Airlines Ltd. (SGX:C6L) said Monday that its passenger load factor in July jumped 2.9 per cent to 84.6 per cent from 81.7 per cent in the prior year period. The airline carried 1.7 million passengers during the month, up 4 per cent from 1.63 million in the previous year. "The competitive landscape continues to be challenging, and the growth in passenger carriage was supported by promotional activities in relevant markets," SIA said.

Noble Group Limited (SGX:N21) plunged 7.1 per cent to  SG$0.455 even though Chief Executive Yusuf Alireza told attendees at the company’s investor day that the company was open to selling its core businesses. Though he did not specify which businesses, he said the company was evaluating a number of options, such as closing certain units, as well as working out an alliance with strategic investors. The company released a 140-page presentation explaining its business in an attempt to reassure shareholders and investors.

Lum Chang Holdings Limited (SGX:L19) said Monday that it had agreed to buy Kelaty House, a freehold commercial property in Wembley, northwest London, from UKI (Wembley) Limited for 25.5 million pounds (SG$55.6 million), according to the Business Times. The company said the acquisition was a “prime investment opportunity” and that it would provide a useful rental income stream to the group in the short-term.

Economic news

Singapore’s non-oil domestic exports (NODX) declined 0.8 per cent last month from July a year ago, reversing from the 4.5 per cent rise in the previous month said TODAY, attributing the fall to weak global demand, particularly China. The fall was mainly due to a decline in non-electronic shipments and slower growth in the exports of electronic products, according to statistics from trade-development agency International Enterprise Singapore.

The MasterCard Index of Consumer Confidence showed that consumer confidence touched a four-year high of 65.3 points by the middle of the year, according to the Straits Times. The index has been picking up in the last 18 months on the back of a strong improvement in sentiment regarding the quality of life as well as the prospect of the stock market.

According to data from the Urban Redevelopment Authority, new private home sales in Singapore quadrupled during the month of July compared to June and touched a two-year high, said Channel News Asia. However, the bulk of the sales were attributable to the 1,390-unit High Park Residences project, located on Fernvale Road in Sengkang, which offloaded 1,169 homes at a median price of S SG$989 per square foot (psf).

Singapore’s Parliament approved the country’s proposal to become a founding member of the Asian Infrastructure Investment Bank, allowing for more opportunities for local firms to participate in overseas development projects such as in the transport, water, logistics and urban development sectors.

On Wall Street Monday, stocks rose following the release of solid US data on the housing sector and on bargain-hunting by investors among the oversold counters in biotech and media, according to Reuters. The Dow Jones Industrial Average rose 67.78 points, or 0.39 percent, to 17,545.18, the S&P 500 gained 10.9 points, or 0.52 percent, to 2,102.44 and the Nasdaq Composite added 43.46 points, or 0.86 percent, to 5,091.70.