singapore stocks close a shade lower monday though investors buy defensive sectors 631262015

Singapore stocks represented by the Straits Times Index (STI) closed nearly flat Monday after trading at significantly higher volumes at a much lower valuation, indicating that investors may be back punting penny stocks. Regardless of the small loss in the STI, the broader market was positive given that gaining stocks outnumbered losers, even though a weak overnight close on Wall Street may have dampened sentiments.

Indices and sectors

The Straits Times Index (STI) ended 3.53 points or 0.10 per cent lower to 3,459.57, taking the year-to-date performance to +2.81 per cent.

The FTSE ST Mid Cap Index gained 0.10 per cent, while the FTSE ST Small Cap Index rose 0.48 per cent

The Singapore Exchange traded a volume of 1,739.5 million shares valued at SG$961.4 million. Gainers outnumbered losers by 244/207.

Amongst the FTSE ST sectors, the top gainers were healthcare (+2.10 per cent), fledgling (+0.67 per cent), consumer goods (+0.50 per cent) and real estate investment trusts (+0.48 per cent). The largest losing sectors were maritime (-3.83 per cent), basic materials (-1.30 per cent), industrials (-1.93 per cent) and telecommunications (-0.63 per cent).

Stocks

Keppel Seghers Belgium and Keppel Seghers UK, environmental technology arms of Keppel Corporation Limited (SGX:BN4), announced the handing over of Phase 2 of the Runcorn Energy-from-Waste (EfW) facility, in Britain, to the client. Phase 1 of the project was completed and handed over in January.

Midas Holdings Ltd (SGX:5EN) subsidiary Jilin Midas Aluminium Industries Co has reportedly secured contracts aggregating 328.9 million yuan (SG$70.1 million) for the supply of car body components required in high-speed trains in China. "As a quality supplier with a long-standing track record and relationship with our customers, we are heartened that our efforts have been rewarded with the continuing confidence of repeat customers CNR Changchun and CNR Tangshan," said Midas chief executive Patrick Chew, as quoted by Straits Times.

Yoma Strategic Holdings Ltd (SGX:Z59), a property and construction group, announced Monday the launch of its potable water plant at Pun Hlaing Golf Estate in Myanmar. The plant was designed and supplied by global water solutions provider Hyflux, and would deliver “high-quality drinking water straight to the taps of residents of the estate.”

Singapore-based offshore services provider Ezion (SGX:5ME) has been sued by a partner alleging the company engaged in a conspiracy to induce an A.P. Moeller-Maersk A/S unit to violate charter agreements, according to Straits Times. Ezion’s lawyer dismissed the claim as frivolous and without merit.

Digiland International Ltd (SGX:G77) announced it had entered into an agreement with a Maltese government agency to develop the Republic of Malta into a Europe-Asia energy trading hub, according to Business Times.

Economic news, currency and insight

Singapore’s non oil domestic exports came off their March levels, with year-on-year growth during the month of April declining to just 2.2 per cent, according to data from trade promotion agency International Enterprise Singapore. However, in a silver lining, the figures were far better than the market expectations of minus 5 per cent, according to Business Times, though analysts remained concerned about basic weakness in exports. "The volatile nature of Singapore's domestic exports suggests we will experience large spikes, as well as dips, but in our view the trend continues to be relatively flat," wrote ANZ economists Daniel Wilson and Devika Mehndiratta. "For NODX to truly turn the corner, we would need to see global demand take a step up," said the analysts. "However, with China slowing, the US still slowly recovering and the EU and Japan attempting to jumpstart growth, a sharp rebound in NODX is unlikely in 2015."

In a move towards improving the market transparency and checks and balances within Singapore’s property market, developers will have to submit transaction data every week to the Controller of Housing starting next Monday, the Ministry of National Development (MND) said yesterday, according to Straits Times.  The data would include sales volumes and transacted prices of individual units, as well as benefits such as rebates, stamp fee absorption or furniture vouchers. This data will be made public on the website of the Urban Redevelopment Authority effective June 5. Prospective homebuyers will therefore have details of private property sales and prices and this will enable them to negotiate better prices in line with market trends.

According to a study of 35 cities by Knight Frank, prime residential prices fell the most in Singapore, plunging 12.6 per cent during the 12 months ended March 31, 2015, according to AsiaOne. After Singapore, the largest declines of 5 per cent each were reported in the Swiss cities of Geneva and Zürich. At the other end, San Francisco topped the list and reported the largest gain in luxury home prices of 14.3 per cent, followed by Bengaluru, Miami and Vancouver, which experienced a 13.6, 12.2 and 11.8 per cent rise respectively.

Wall Street stocks jump to record highs as investors hoped that US Federal reserve will likely postpone raising interest rates following recent weak economic data, as well as a rally in the shares of Apple Inc. "It's becoming more of the collective thought that the Fed can wait, because you really don't see any blistering growth," said Kurt Brunner, a portfolio manager at Swarthmore Group in Philadelphia, as quoted by Fox Business. Meanwhile, Billionaire activist investor Carl Icahn said on Monday Apple’s stock was highly undervalued and that it should be trading at US$240 (SG$318.18), nearly double its current price. The Dow Jones Industrial Average ended up 26.32 points, or 0.14 percent, to 18,298.88, according to preliminary data. The S&P 500 closed ahead 6.47 points, or 0.3 percent, to 2,129.2 and the Nasdaq Composite added 30.15 points, or 0.6 percent, to 5,078.44.