singapore investors sell before the weekend fearing greece troubles 769402015

Singapore stocks ended down on Friday following the global concerns regarding the breakdown in Greek bailout talks, as well as the sharp fall in the Chinese stock markets.

Indices and sectors

The Straits Times Index (STI) ended 28.97 points or 0.86 per cent lower to 3,320.9, taking the year-to-date performance to -1.31 per cent.

The FTSE ST Mid Cap Index gained 0.08 per cent, while the FTSE ST Small Cap Index declined 0.28 per cent.

The Singapore Exchange traded a volume of 1,179.6 million shares valued at SG$925.7 million. Losers outnumbered gainers by 256/180.

Amongst the FTSE ST sectors, the gainers included fledgling (+0.63 per cent), technology (+0.61 per cent), real estate investment trusts (+0.32 per cent) and maritime (+0.29 per cent). Sectors that ended in negative territory included utilities (-1.86 per cent), telecommunications (-1.53 per cent), basic materials (-1.36 per cent) and CataList index (-0.96 per cent).

Stocks

STATS ChipPAC Ltd. (SGX:S24) gained nearly 1 per cent to SG$0.515 after Singapore Technologies Semiconductors Pte Ltd, which is wholly owned by Temasek Holdings, accepted the final cash offer from China’s JCET-SC for its controlling stake in the company. The cash offer is for 46.577 cents per share, or SG$1.03 billion, according to the Straits Times.

Aircraft servicing company SIA Engineering Company Limited (SGX:S59) was up 1.31 per cent to SG$3.88 on the announcement that the company had renewed its services contract with SilkAir for SG$197 million. The tenure of the contract is five years with an option for an extension of another year.

Mapletree Industrial Trust (SGX:ME8U) said net property income for the year ended March 31 rose 6.5 per cent to SG$228.6 million and distributable income per unit (DPU) increased by 5.1 per cent to 10.43 cents. The improved profitability was due to the high average occupancy rate of 90.9 per cent in its properties.

Net property income at Mapletree Commercial Trust (SGX:N2IU) during the year ended March 31 rose 8.4 per cent from SG$195.3 million to SG$211.7 million, while DPU was up 8.5 per cent to SG$0.08.

Economic news

On July 5, Greece will vote on a referendum on whether to accept the bailout proposals by the international creditors. The Greece situation turned for the worse after Eurogroup eurozone finance ministers responded by refusing to extend its bailout beyond Tuesday, raising apprehensions that the heavily indebted country would default on an IMF loan repayment due the same day.

On Sunday, Greek Prime Minister Alexis Tsipras said banks would be closed on Monday and subject to capital controls. More than a third of ATMs across Greece ran out of cash on Saturday before they were replenished, according to Straits Times. The Greek stock market would also remain closed on Monday, as part of a series of emergency measures that were agreed at a Cabinet meeting.

Stocks closed mixed on Wall Street Friday following the negative progress on the bailout talks between Greece and its creditors. The S&P 500 index fell a fraction to 2,101. The 30-stock Dow Jones Industrial Average got a boost from Nike, which gained 4 percent after reporting better earnings. The Dow added 57 points, or 0.3 percent, to 17,947. The Nasdaq composite gave up 31 points, or 0.6 percent, to 5,080.