singapore stocks end lower again on poor volumes 1236602015

Singapore stocks ended a shade lower Monday, starting the week on a weak note, on the back of weak Wall Street cues and another slide in the Chinese stock markets.

The session, the fifth loss in six days, was marked by very low volumes and negative market breadth, and again took the STI’s loss this year to beyond 15 per cent.

Indices and sectors

The Straits Times Index (STI) ended 11.4 points or 0.4 per cent lower to 2,852.41, taking the year-to-date performance to -15.24 per cent.

The FTSE ST Mid Cap Index declined 0.72 per cent, while the FTSE ST Small Cap Index declined 0.55 per cent.

The Singapore Exchange traded a volume of 840 million shares valued at SG$833.8 million. Losers outnumbered gainers by 266/125.

Amongst the FTSE ST sectors, the losers included basic materials (-3.35 per cent), utilities (-1.69 per cent), consumer goods (-1.60 per cent), China top index (-1.12 per cent), oil and gas (-1.03 per cent), healthcare (-0.97 per cent) and technology (-0.86 per cent). The only gaining sector was fledgling (+0.06 per cent).

Stocks

Though trading volumes yesterday were pathetic, data released by the Singapore Exchange showed that in August the total turnover in the securities market shot up 16 per cent month-on-month to SG$28.1 billion. On a year-on-year basis, turnover was up 34 per cent, according to Channel News Asia. The key indicator of the daily average trading value jumped 35 per cent month-on-month, and 49 per cent year-on-year, to SG$1.5 billion.

Yuuzoo Corporation Ltd (SGX:AFC) gained 7.46 per cent to SG$0.144. According to the Business Times, the company has secured a SG$30 million funding facility from the New York-based private alternative investment group GEM Global Yield Fund, to be drawn over three years through periodic drawdowns accompanied by the issue of ordinary shares to the lender at a 10 per cent discount to their price prevailing on the date of the drawdown.

China Essence Group Ltd. (SGX:G54) said yesterday that an investigation of its subsidiaries in China by a UK consultant had discovered certain “unauthorized transactions” in the shares of at least two subsidiaries by its former executive chairman and Chief Executive, according to the Business Times.

Ezra Holdings Limited (SGX:5DN) said yesterday that its subsea services division EMAS AMC had agreed a contract with BHP Billiton Limited (ASX:BHP) regarding its Angostura phase 3 development project in offshore Trinidad and Tobago. According to the Business Times, the scope of the project includes project management, fabrication, construction and installation of 12-inch flowlines along with a complete subsea package. Its value was not disclosed.

Ramba Energy Ltd (SGX:R14) said in a filing on Monday that it had agreed to sell a 25 per cent working interest in the Lemang production sharing contract (PSC) from its 80.4 per cent owned Indonesian subsidiary PT Hexindo Gemilang Jaya. According to the Business Times, the company will disclose the identity of the investor only after September 25, the date by which definitive agreements are expected to be executed.

Mining company Blumont Group Ltd (SGX:A33) has drastically reduced the price of its rights share offering from 0.675 Singapore cents to just 0.2 Singapore cents per share in view of the dismal market conditions, according to the Business Times. The proceeds from the rights issue, which is being offered in the ratio of one share for every two existing held, will be used for repaying a debt from WinterCrest Advisers and the rest for working capital.

Coalmining company Geo Energy Resources Ltd (SGX:RE4) said in response to a trading query from Singapore Exchange that it was unaware of any undisclosed reasons that could explain the sharp 15.3 per cent drop in its share price on Monday.

Economic news

People's Bank of China (PBoC) Governor Zhou Xiaochuan admitted at the weekend G20 meeting of finance ministers and central bank governors that there were bubbles on the Chinese stock exchanges, but said, however, that the volatility was now expected to come to an end. "Bubbles continued to build up until mid-June," he said, according to the Business Times. "Since mid-June, three rounds of corrections took place in China's stock market – the first two did not have international impact, while the third one in late August (had) some global influence."

The US markets were closed Monday for the Labor Day holiday.