singapore stocks ended last week on a positive note 593822015

After four consecutive down days, Singapore stocks represented by the Straits Times Index managed to close higher on Friday, taking heart from an overnight positive close on Wall Street, and generally upbeat global stock markets. Regionally, the Shanghai index ended higher by 2.28 per cent, while the Hang Seng index gained 1.05 per cent.

Indices and sectors

The Straits Times Index (STI) ended 19.23 points or 0.56 per cent higher to 3,452.01, taking the year-to-date performance to +2.58 per cent.

The FTSE ST Mid Cap Index gained 0.01 per cent, while the FTSE ST Small Cap Index rose 0.19 per cent.

The Singapore Exchange traded a volume of 1,222.9 million shares valued at SG$990.9 million. Gainers outnumbered losers by 236/200.

Amongst the FTSE ST sectors, the top gainers were maritime (+1.25 per cent), industrials (+1.19 per cent), consumer goods (+1.07 per cent) and utilities (+1.01 per cent). The biggest losers were oil and gas (-0.39 per cent), real estate investment trusts (-0.22 per cent) and real estate (-0.10 per cent).

Stocks

Ascendas Hospitality Trust Management (SGX:Q1P) said net property income rose 2.8 per cent to SG$22.6 million during the fourth quarter ended March 31 2015, and for the full year it was up 11.8 per cent to SG$93.3 million. Gross revenue was up 1.6 per cent for the quarter to SG$54.5 million, and up 6 per cent for the full year to SG$227.1 million. The trust said distribution per stapled security (DPU) will be 1.25 cents for the reporting quarter, up 3.3 per cent from 1.21 cents in the prior year quarter, according to www.fool.sg.

Perennial Real Estate Holdings Limited (SGX:40S) said on Friday that profit after tax and minority interests during the five months ended March 2015 was SG$24.7 million, and excluding certain one-off costs, was SG$36.1 million.

Hotel Properties Limited (SGX:H15) said earnings during the first quarter ended March 31 fell to SG$14.3 million from SG$44.6 million from the year ago period, and revenue declined SG$158.9 million from SG$214.5 million previously. The company explained that the steep drop in revenue was due to lower contributions from its property division in view of the Tomlinson Heights condominium development which was completed in the first quarter last year, according to Straits Times.

International real estate company Frasers Centrepoint Ltd (SGX:TQ5) said net profit during the second quarter ended March 31 jumped 104 per cent to SG$143 million from SG$70 million in the prior year period, despite revenue remaining flat at SG$442 million. However, the results were helped by fair value gains of SG$44 million arising from increased valuation of its properties. The company declared an interim dividend of 2.4 cents.

Otto Marine Ltd (SGX:G4F) warned Sunday that it could likely report a net loss for the first quarter ended March 31, 2015, according to Business Times. "The company believes that the expected losses in the consolidated losses attributable to owners…was primarily attributable to the following reasons: decrease in vessels utilization and lower charter rates amidst the current challenging market conditions particularly for the oil and gas industry; and provision and impairment.”

Tourism developer Straco Corporation Ltd (SGX:S85) said Friday that net profit during the three months ended March 31 surged 60.5 per cent to SG$8.7 million, while revenue zoomed up 71.5 per cent to SG$25.2 million. The sharp improvement was attributable mainly to revenue from the Singapore Flyer, which was acquired by company unit Straco Leisure in November 2014, as reported by Business Times.

Real estate group OUE Ltd (SGX:LJ3) said net profit during the three months and first quarter ended March 31 crashed 91.8 per cent to SG$77.2 million from the year ago period following the deconsolidation of its subsidiary OUE Hospitality Trust in March. However, revenue rose slightly by 1 per cent to SG$107.97 million. "The divestment of Crowne Plaza Changi Airport to OUE H-Reit is consistent with our strategy to unlock and recycle capital to achieve higher returns for our shareholders," said OUE executive chairman Stephen Riady. "At the same time, we are pushing ahead with our pipeline of asset-enhancement initiatives, coupled with active lease management, to further strengthen our recurrent income base."

Hotel Properties Limited (SGX:H15) said net profit during the first quarter ended March 31 declined 68 per cent to SG$14.3 million owing to lower profit contribution from two subsidiaries and a fall in revenue by 26 per cent to SG$158.9 million, according to Business Times.

Singapore sovereign wealth fund GIC announced Friday that it is forming a consortium with four other organizations to bid £3.1 billion (SG$6.36 billion) to acquire a 33 per cent stake in Hutchison Whampoa’s British mobile telecom business, reported Arab News. GIC’s own investment would be £1.1 billion. The other entities investing alongside GIC are Abu Dhabi Investment Authority, the Canada Pension Plan Investment Board, Brazilian investment bank BTG Pactual and the pension fund of the Canadian province of Quebec, the Caisse de depot et placement du Quebec.

Economic news, currency and insight

The US Labor Department said Friday that 223,000 net new jobs were added in the US economy in April, while the jobless rate fell to a seven-year low of 5.4 per cent, lower by 0.1 per cent compared to the previous month, according to Business Times.

According to data from the Chinese Customs Administration, overseas export shipments, in terms of yuan value, declined 6.2 per cent in April compared to the prior year month, while imports slid 16.1 per cent, the fourth straight double-digit decline. As a result, the country reported an April trade surplus of 210.21 billion yuan (SG$45.14 billion). "The data highlights the precarious position of the economy and supports the case for further monetary and fiscal easing," said Dariusz Kowalczyk, senior economist at Credit Agricole SA in Hong Kong, and quoted by Straits Times Friday.

The People’s Bank of China cuts interest rates for the third time in six months on Sunday in an attempt to resuscitate a slowing economy. The central bank said on its website on Sunday that it was lowering its benchmark, one-year lending rate by 25 basis points to 5.1 per cent from May 11. It cut the benchmark deposit rate by the same amount to 2.25 per cent. "China's economy is still facing relatively big downward pressure," the PBOC said. "At the same time, the overall level of domestic prices remains low, and real interest rates are still higher than the historical average," it said, as reported by the Straits Times.

On Wall Street, stocks soared over one per cent higher on Friday as investors took heart from non-farm payroll data that showed the US economy added 223,000 jobs in April. The jobs growth was good enough to indicate higher momentum economy, but not so high as to create the risk of an earlier interest rate hike by the Fed. The Dow Jones Industrial Average rose 267.05 points, or 1.49 percent, to end at 18,191.11. The S&P 500 gained 28.10 points, or 1.35 percent, to 2,116.10 and the Nasdaq Composite added 58 points, or 1.17 percent, to 5,003.55.