global cues send singapores straits times index reeling 912442015

Singapore stocks plunged over 1 per cent on the back of a bleak overnight Wall Street closing, and a regional stock sell off precipitated by an unprecedented crash in Chinese stocks. Every sector ended in the red, and losers outnumbered gainers by the biggest margin seen in recent times.

Indices and sectors

The Straits Times Index (STI) ended 39.23 points or 1.17 per cent lower at 3,313.42, taking the year-to-date performance to -1.54 per cent.

The FTSE ST Mid Cap Index declined 1.28 per cent, while the FTSE ST Small Cap Index declined 1.37 per cent.

The Singapore Exchange traded a volume of 1,738.1 million shares valued at SG$982 million. Losers outnumbered gainers by 403/93.

Amongst the FTSE ST sectors, the top losers included utilities (-2.87 per cent), basic materials (-2.18 per cent), healthcare (-2.11 per cent), China top index (-1.92 per cent) and real estate holding and development (-1.61 per cent). There were no gaining sectors for the day.

Stocks

SIA Engineering Company Limited (SGX:S59), the engineering arm of Singapore Airlines, said net profit during its first-quarter ended June 30 fell 22.8 per cent to SG$41.3 million, while revenue dipped 5.7 per cent to SG$277.3 million, compared to the prior year period. The disappointing results were mainly due to rising business costs, competition, and lower revenues on account of overall and aircraft airframe components, according to the Straits Times.

Raffles Medical Group Ltd. (SGX:R01) said Monday that net profit for the second quarter ended June rose 2.2 per cent to SG$15.9 million from the prior year period, while revenue jumped 7.2 per cent to SG$99.3 million. "The more measured pace of economic growth in Singapore and the region may have a dampening effect on healthcare demand," the company said, as quoted by Straits Times. "However, with the planned completion of the Raffles Holland V and Raffles Hospital Extension projects, the group is well positioned for the future."

DBS Group Holdings Ltd (SGX:D05) said net profit during the second quarter jumped 15 per cent to SG$1.12 billion driven by improved margins, broad-based fee income growth and higher volume of loans. The bank boosted its interim dividend to SG$0.30 per share from SG$0.28. Chief Executive Piyush Gupta said the second half could be “choppy” depending on what the Fed does, and did not rule out the possibility of another “taper tantrum.” In addition, earnings could be volatile due to the effects from the Chinese slowdown, according to Business Times.

Fortune Real Estate Investment Trust (SGX:F25U) said income available for distribution during the second quarter ended June jumped 12.7 per cent to HK$221.5 million (SG$39.07 million) from HK$196.6 million in the prior year. Revenue rose 13.2 per cent to HK$463.8 million, reported the Business Times.

Yoma Strategic Holdings Ltd (SGX:Z59) said net profit attributable to shareholders for the June quarter rose to SG$2.56 million from SG$1.44 million in the prior year, while revenue surged 31 per cent to SG$22.6 million. The company said that growth in its automotive sales more than offset the fall in sales of residences and land development rights, according to the Business Times.

Economic news

Wall Street equities fell sharply on Monday after an 8.5 per cent crash in the Shanghai Composite Index sparked worries about global economic growth. The Dow Jones Industrial Average shed 127.94 points (0.73 per cent) at 17,440.59. The broad-based S&P 500 fell 12.01 (0.58 per cent) to 2,067.64, while the tech-rich Nasdaq Composite Index dropped 48.85 (0.96 per cent) to 5,039.78.