singapore stocks rise smartly for the second straight session 1505592015

As risk is back in fashion, investors scoop up blue chips.

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By :  ,  Financial Analyst

Singapore stocks were lifted Tuesday on a wave of regional bullishness sparked by the historic Trans-Pacific Partnership, as well as expectations of monetary easing in China and by the ECB.

Investors made a beeline for the top banks as well as index heavyweights such as Singapore Telecommunications Limited (SGX:Z74), which was up 2.73 per cent, Golden Agri-Resources Ltd (SGX:E5H) (+8.6 per cent) and Jardine Cycle & Carriage Ltd (SGX:C07) (+7.5 per cent).


The Straits Times Index (STI) ended 46.16 points or 1.62 per cent higher at 2,897.41, taking the year-to-date performance to -13.90 per cent.

The FTSE ST Mid Cap Index gained 0.97 per cent, while the FTSE ST Small Cap Index rose 0.35 per cent.

The Singapore Exchange traded a volume of 1,476.8 million shares valued at SG$1,237.3 million. Gainers outnumbered losers by 263/138.

Amongst the FTSE ST sectors, the gaining sectors included telecom (+2.62 per cent), industrials (+2.38 per cent), real estate holding and development (+2.20 per cent), financials (+1.63 per cent), real estate (+1.59 per cent) and China (+1.19 per cent). Healthcare (-0.05 per cent) was the only sector to end in the red.


Shares in the Noble Group Limited (SGX:N21) fell 5 per cent to SG$0.380. According to Channel News Asia, the commodities trader appointed Mr. Frank Russo, who was previously managing director and head of audit for the Energy, Aviation and Insurance businesses at GE Capital, as its new head of internal audit. Mr Russo will be based in Stamford, Connecticut in the US and will report directly to Mr Alireza and the audit committee, Channel News Asia said.

Oxley Holdings Ltd (SGX:5UX) was up 1.25 per cent to SG$0.405. According to the Business Times, the company’s chief on Monday acquired around 11.01 million shares in International Healthway Corporation Ltd (SGX:5WA) (IHC), upping his stake in the company to 14.95 per cent. Shares in the latter company jumped 1.18 per cent to SG$0.086. Speculation is rife on his ultimate intentions, given that the Oxley CEO and his deputy now hold an aggregate 21.08 per cent stake – almost within handshaking distance of the 23.37 per cent stake held in IHC by its CEO.

According to the Business Times, Creative Elite Holdings, which is an investment holding company incorporated in the British Virgin Islands, has launched a general offer for shares in Jacks International Limited (SGX:BAC) after concluding a sale and purchase agreement for the acquisition of 19.83 million shares of Jacks from its holding company Abacus Pacific. The price offered by creative elite is SG$0.80 per share in Jacks, a premium of approximately 91 per cent on the company’s last traded price of SG$0.42 on September 8.

Economic news

At a conference organised by the Cyber Security Agency of Singapore (CSA), Communications and Information Minister Yaacob Ibrahim said up to 10 per cent of the country’s information technology budget would be spent on cyber security, and added that the private sector should follow that example. Meanwhile, Singapore Telecommunications Limited (SGX:Z74) said it planned to work with CSA in research and development to strengthen Singapore’s cyber security capabilities.

According to the sixth edition of Allianz's Global Wealth Report 2015, Singapore’s gross per capita financial assets of 106,620 euros (SG$170,610), as at end 2014, was the highest in the region and surpassed countries such as Japan, Taiwan and India. After adjusting liabilities, Singapore’s net financial assets of about €73,000 (SG$117,000), ranked the ninth highest in the world.

For the second time this year the IMF cut its forecasts for growth of the world economy to 3.1 per cent this year and 3.6 per cent next year, down 0.2 per cent from the July forecast. The IMF cited the Chinese slowdown and the slump in commodity prices as reasons for the adjustment.

Singapore has given its support to a tax avoidance blueprint by the Organisation for Economic Cooperation and Development (OECD) that focuses on the concept of base erosion and profit shifting (BEPS). "With BEPS, it is more important than ever that taxpayers wanting to seek a tax incentive in Singapore will have to ensure that their operations in Singapore are business-driven and they are able to meet the stringent conditions required as part of the incentives," said EY Singapore partner Tan Bin Eng, as quoted by the Straits Times.

According to a Business Optimism Index (BOI) study compiled by Dun & Bradstreet-Singapore Commercial Credit Bureau (SCCB), Singapore businesses are more pessimistic during the fourth quarter compared to a year ago. The index has slumped to 0.14 percentage points in Q4 from 14.60 percentage points in Q3, the Business Times said, attributing the decline to prevailing global economic uncertainty.

On Wall Street Tuesday, stocks corrected after a five-session string of gains with investors turning cautious on upcoming earnings results. According to Reuters, the Dow Jones Industrial Average moved up 0.08 percent to end at 16,790.19 points, the S&P 500 lost 0.36 percent to 1,979.92 and the Nasdaq Composite dropped 0.69 percent to 4,748.36.

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