singapore stocks end friday and the week in negative territory 1230072015

Singapore stocks fell sharply on the last day of the week as investors trimmed their bets ahead of the US jobs report to be released later that night. Investors turned a blind eye to overnight gains on Wall Street as well as the closure of Chinese markets, and traded in line with other Asian stock markets, which also faced selling pressure. For the week the Straits Times Index ended down 3.1 per cent.

Indices and sectors

The Straits Times Index (STI) ended 42.62 points or 1.47 per cent lower at 2,863.81, taking the year-to-date performance to -14.90 per cent.

The FTSE ST Mid Cap Index gained 0.02 per cent, while the FTSE ST Small Cap Index declined 0.14 per cent.

The Singapore Exchange traded a volume of 1,156.3 million shares valued at SG$1,118.2 million. Losers outnumbered gainers by 274/145.

Amongst the FTSE ST sectors, the gainers included utilities (+1.07 per cent), maritime (+0.6 per cent) and CataList index (+0.05 per cent). Losing sectors included real estate holding and development (-2.07 per cent), China (-1.99 per cent), industrials (-1.61 per cent), China top index (-1.44 per cent), financials (-1.32 per cent) and technology (-1.25 per cent).

Stocks

Keppel REIT (SGX:K71U) announced that it is acquiring three prime retail street-fronting units from Cerberos at 8 Exhibition Street in Melbourne for AU$8.6 million (SG$8.46 million) through its Keppel Reit (Australia) Trust, according to the Business Times. Keppel Reit already owns a half-share in the office development at 8 Exhibition Street as well as two retail units.

Ng Hsueh Ling, chief executive officer of manager Keppel Reit Management, said: "The acquisition presents a rare opportunity for Keppel Reit to gain strategic control of the office and retail components in a freehold landmark in the heart of Melbourne's central business district.”

According to the Business Times, the investor who is seeking to take Lizhong Wheel Group Limited (SGX:E94) private has acquired a stake of 84.15 per cent as at 5 PM on Friday, and is within handshaking distance of the 90 per cent level that will trigger an ‘unconditional’ offer.

Singapore Exchange Limited (SGX:S68) Chief Regulatory Officer Tan Boon Gin wrote in the latest regulator’s column that companies should closely monitor their shares for signs of any unusual trading activity while they are conducting any confidential or material discussions. “If trading activities of its shares suggest there could be a potential leak of the matter under negotiations or discussions, the company must call a trading halt and make the announcement," Mr. Tan wrote, according to AsiaOne, indicating that unusual share trading ahead of announcements could be a sign of market misconduct.

Economic news

According to the Knight Frank Global House Price Index, which tracks 56 global residential markets, apartment prices in Singapore recorded the second-biggest year-on-year drop in prices during the second quarter ended June 30. The top loser was China, where apartment values plunged 5.7 per cent in that period. In comparison, Singapore prices fell 3.2 per cent. About 27 per cent of the 56 housing markets tracked by the index showed an annual decline in prices. "Lingering concerns over the euro zone economy, jitters in global stock markets and discussions of when, not if, a rate rise in the United States occurs are impinging on growth," Knight Frank said in a statement, as reported by AsiaOne.

On Wall Street Friday, US stocks declined after August payrolls data proved to be a mixed bag of information that provided little clarity on the outlook for interest rates, even as the global economy struggled for growth, according to the Straits Times. The Dow Jones Industrial Average ended down 1.66 percent at 16,102.38 points, the S&P 500 lost 1.53 percent to close at 1,921.23 and the Nasdaq Composite gave up 1.05 percent to 4,683.92.