singapore stocks rebound on regional cues 1249092015

Singapore stocks rebounded from their recent downward trajectory as gains in the Chinese and Hong Kong stock markets and general regional bullishness emboldened investors to commence bargain-hunting.

Indices and sectors

The Straits Times Index (STI) ended 32.91 points or 1.15 per cent higher to 2,885.32, taking the year-to-date performance to -14.26 per cent.

The FTSE ST Mid Cap Index gained 1.21 per cent, while the FTSE ST Small Cap Index rose 0.89 per cent.

The Singapore Exchange traded a volume of 1,186.5 million shares valued at SG$1,059.4 million. Gainers outnumbered losers by 245/151.

Amongst the FTSE ST sectors, the gainers included utilities (+2.66 per cent), maritime (+2.37 per cent), basic materials (+2.21 per cent), oil and gas (+2.16 per cent), China top index (+1.86 per cent), real estate holding and development (+1.75 per cent), consumer services (+1.73 per cent) and financials (+1.32 per cent). The only losing sector was telecommunications (-0.35 per cent).

Stocks

Wilmar International Limited (SGX:F34), which is the world’s largest palm oil processor, hired former Goldman Sachs Group banker Yong Hsin Yue in July as general manager for special projects. The position is said to be a deal-making role, given that it is centred on strategic development, according to the Straits Times. Ms. Yong has two decades of deal-making experience, Wilmar said in an email to Bloomberg.

Potato processing company, China Essence Group Ltd. (SGX:G54), whose shares are currently suspended for trading, said its executive director, Steven Chow, has resigned within a month of his appointment citing “other business involvement.” Mr Chow had been appointed on August 3 to oversee corporate development and mergers and acquisitions, according to the Business Times. The company revealed yesterday that the shareholding of at least two subsidiaries in China had been transferred to certain individuals in April 2015 without authorisation. The transactions were detected by Moore Stephens, the company’s auditor.

Cordlife Group Ltd (SGX:P8A) said yesterday that Hong Kong company Robust Plan had withdrawn its offer for Cordlife's shares and convertible notes in US-listed China Cord Blood Corp (CCBC) with immediate effect, the Business Times reported.

HG Metal Manufacturing Ltd. (SGX:526) has sued its customer Gayathri Steels for alleged non-payment of SG$1.81 million worth of goods sold and interest accrued, according to the Business Times. Meanwhile, Gayathri has counterclaimed for SG$2.09 million plus interest and costs, alleging breach of contract by HG Metal.

Oil and gas trading company CEFC International Ltd (SGX:Y35) has secured an overseas procurement and supply contract from CEFC Shanghai International Group, according to the Business Times.

Economic news

According to data released yesterday by SRX Property, resale prices of private non-landed properties rose 0.2 per cent in August from the previous month, but were still down 1.7 per cent on a year-on-year basis. On a happier note, resale volume was up a solid 15.9 per cent August compared to the prior year month – “a strong signal that more buyers are entering the market,” according to ERA Realty key executive officer Eugene Lim, as reported by the Straits Times.

On Wall Street Tuesday, stocks closed higher as investors were enthused by the late rally on the Chinese stock markets. The Dow Jones Industrial Average rose 390 points, or 2.4 per cent, to 16,493. The S&P 500 advanced 2.5 per cent to 1,969 and the Nasdaq Composite gained 2.7 per cent to 4,812.