singapores straits times index finally rebounds after five losing sessions 1718772015

A sharp jump in the big banks drives the gains in the STI.

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By :  ,  Financial Analyst

Shares on the Singapore exchange surged higher on Tuesday, with the larger banks such as DBS Group Holdings Ltd (SGX:D05) and Oversea-Chinese Banking Corp. Limited (SGX:O39) clocking handsome gains over 2 per cent each.

The benchmark STI was boosted by tailwinds from a positive overnight close on Wall Street, as well as stability on the bourses in Hong Kong and mainland China, and finally managed to close higher, breaking a 5-session losing jinx.

Indices and Sectors

The Straits Times Index (STI) ended 25.15 points or 0.85 per cent higher at 2,999.56, taking the year-to-date performance to -10.86 per cent.

The FTSE ST Mid Cap Index gained 0.83 per cent, while the FTSE ST Small Cap Index rose 0.90 per cent.

The Singapore Exchange traded a volume of 1,312.2 million shares valued at SG$880.3 million. Gainers outnumbered losers by 265/140.

The top gaining sectors were technology (+3.36 per cent), basic materials (+1.56 per cent), consumer services (+1.55 per cent), oil and gas (+1.27 per cent), maritime (+0.90 per cent) and financials (+0.88 per cent). Losing sectors were telecommunications (-0.38 per cent), real estate holding and development (-0.11 per cent) and industrials (-0.06 per cent).


Far East Hospitality Trust (SGX:Q5T) gained 0.75 per cent to close at SG$0.675. The hotelier and serviced apartments provider said income available for distribution during the third quarter ended September 30 fell 8 per cent year-on-year to SG$21.6 million. Gross revenue was down 4.8 per cent to SG$29.7 million and net property income fell 4.6 per cent to SG$26.9 million. "Corporate and leisure demand was soft amidst the uncertain global economic climate, the strong Singapore currency and the outbreak of the haze," the company said, according to Straits Times.

Eucon Holding Ltd (SGX:E27) reported a net loss of SG$500,000 during the third quarter ended September 30. The PCB manufacturer’s revenue was down 22 per cent year-on-year to SG$11.5 million.

CosmoSteel Holdings Limited (SGX:B9S) shot up 3.08 per cent to SG$0.134. However, the company warned yesterday that it might report a loss for the financial year ended September 30.

China Minzhong Food Corporation Limited (SGX:K2N) said net profit during the first quarter ended September 30 plunged 73.1 per cent to 15.5 million yuan (SG$3.43 million), mainly attributable to a foreign exchange loss.

The Straits Times said today that Olam International Ltd (SGX:O32) last week raised US$1 billion (SG$1.4 billion) from 19 banks around the globe. The company will use the money, along with its share of the recent investment by Mitsubishi Corp, for acquisitions in the current situation of a global commodities rout. Chief executive Sunny Verghese said September that Olam was looking for acquisitions in the range of US$100 million and US$200 million.

Sembcorp Marine Ltd (SGX:S51) inaugurated a new steel structure fabrication workshop, the largest of its kind in Southeast Asia, the Straits Times said. The new facility is claimed to reduce man-hours and production time to half the previous process requirements for every tonne of steel fabricated.

Fortune Real Estate Investment Trust (SGX:F25U) said its distribution per unit (DPU) during the third quarter ended September 30 jumped 12 per cent year-on-year to 11.54 Hong Kong cents, while revenue grew 12.9 per cent to HK$470.45 million (SG$84.73 million) and net property income rose 14.7 per cent to HK$328.9 million. “Fortune REIT's portfolio of private housing estate retail properties, which cater mainly to day-to-day shopping needs, tends to maintain a more resilient performance when compared to the overall market and economic conditions," the trust said, according to the Business Times.

The Singapore Exchange Limited (SGX:S68) announced yesterday that it will establish the SGX Chicago Hub within the CME Group’s co-location facility based in Aurora, Illinois, to provide direct connectivity for customers between the two facilities. “The hub will allow for direct and cost effective access to SGX’s portfolio of over 60 equity, FX and commodities futures contracts that are approved for trading by direct access in North America by the Commodity Futures Trading Commission (CFTC),” the SGX said in a statement.

PACC Offshore Services Holdings Ltd (SGX:U6C) said yesterday that net profit during the third quarter ended September 30 fell 14 per cent year-on-year to US$12.6 million. Revenues of US$80.4 million during the quarter were up 20 per cent. The company attributed the jump in revenue to “strong growth in the offshore accommodation business division.”

Economic news

The Straits Times reported this morning that Singapore’s Purchasing Managers Index (PMI) during October was 48.9, its fourth consecutive month of contraction. A reading below 50 indicates contraction in activity. The index was dragged by a diminishing flow of domestic and export orders, lower production output, and declining levels of inventory and employment.

The Singapore Business Federation has launched a free online productivity calculator which employers can use to detect inefficiencies simply by inputting simple financial data such as labour costs and operating profit. The results may also be benchmarked against a company’s peers, because the database contains information on 7,227 companies across 12 sectors, including a moving average for each sector.

On Wall Street Tuesday, stocks ended higher on the back of sharp gains in the energy as well as big tech sectors, Reuters said. The Dow Jones Industrial Average rose 89.39 points, or 0.5 percent, to 17,918.15, the S&P 500 gained 5.74 points, or 0.27 percent, to 2,109.79 and the Nasdaq Composite added 17.98 points, or 0.35 percent, to 5,145.13. The Nasdaq 100 took out the highs reached during the dotcom bubble in the year 2000, moving up 0.3 per cent to 4,719.05.

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