singapores straits times index inches into the black in the last hour of trade 1370102015

Singapore stocks opened well into negative territory in Monday’s trading, weighed down by negative cues from Wall Street’s sharply lower Friday close.

However, a steady uptrend prevailed through the rest of the day, so much so that the benchmark Straits Times Index managed to crawl into the green in the dying hours of trade.

Unfortunately, the day’s rally may be suspect given that it was based on rather low volumes.

Indices and sectors

The Straits Times Index (STI) ended 2.68 points or 0.09 per cent higher to 2,882.27, taking the year-to-date performance to -14.35 per cent.

The FTSE ST Mid Cap Index declined 0.39 per cent, while the FTSE ST Small Cap Index declined 0.37 per cent.

The Singapore Exchange traded a volume of 1,187.6 million shares valued at SG$838.1 million. Losers outnumbered gainers by 220/183.

Amongst the FTSE ST sectors, the gaining sectors included China (+1.44 per cent), real estate holding and development (+1.39 per cent), maritime (+1.14 per cent), industrials (+0.74 per cent), consumer goods (+0.66 per cent) and oil and gas (+0.58 per cent). Losing sectors included CataList index (-8.45 per cent), healthcare (-2.25 per cent), basic materials (-1.79 per cent), telecom (-1.31 per cent) and utilities (-1.31 per cent).

Stocks

Three new firms that entered the Straits Times Index (STI) on Monday (Sept 21) were UOL Group Limited (SGX:U14), Sats Ltd (SGX:S58) and Yangzijiang Shipbuilding Holdings Ltd (SGX:BS6). These shares gained 1.00 per cent, 2.89 per cent and 2.15 per cent respectively, and outshone the STI by a solid margin.

The Competition Commission of Singapore has given the green signal to an alliance between Singapore’s Tiger Airways Holdings Limited (SGX:J7X) and Philippines flag carrier Cebu Pacific, allowing the two airlines to collaborate on the passenger markets of the two countries, including setting sales and schedules for certain routes.

SembCorp Industries Limited (SGX:U96) gained 2 per cent to SG$3.57. The company announced that Sembcorp Environment, its wholly-owned subsidiary, had agreed to divest its 40 per cent stake in SembSita Pacific Pte Ltd (SembSita) to its 60 per cent joint venture partner, Suez Environnement Asia (Suez), for AU$485 million. Sembcorp will earn a net profit of approximately SG$350 million on this divestment. “Proceeds from its sale will provide us with additional resources to invest in businesses and markets with high growth potential, in line with our focus on the energy and water sectors,” the company said, according to Hellenic Shipping News.

Vessel management outfit Jasper Investments Limited (SGX:FQ7) plunged 16.67 per cent to SG$0.005. The Business Times said today that two new majority investors, who took over an 80 per cent interest in Jasper by paying SG$1.25 million a share purchase deal, have now offered to buy out the remaining shares in the company.

Magnus Energy Group Ltd. (SGX:41S) surged 12.5 per cent to SG$0.009. According to the Business Times, company subsidiary Mid-Continent Equipment Group (Mid-Con) will pay AU$1 million (SG$1 million) in cash to acquire 8 million shares in Royal, a new Australian oil and gas company. "The proposed subscription would enable Mid-Con to take a strategic stake in Royal to expand its oil and gas equipment supply business and to participate in the oil and gas investment opportunities through Royal," Magnus Energy said.

Economic news

Alexis Tsipras led his leftist Syriza party to a “clear mandate” in Greece’s fifth general election in six years. Though the party was slightly short of an overall majority, it will need the support of other parties to form yet another coalition government. According to the BBC, Syriza will renew its coalition with the nationalist Independent Greeks party.

On Wall Street Monday, stocks closed higher as investors tested waters after the Fed-induced losses last week. In a session marked by below-average trading volumes, the Dow Jones Industrial Average rose 125.61 points, or 0.77 percent, to 16,510.19, the S&P 500 gained 8.94 points, or 0.46 percent, to 1,966.97 and the Nasdaq Composite added 1.73 points, or 0.04 percent, to 4,828.96.