singapore stocks ended the week on a marginally positive note 629742015

The Singapore stock market was able to close in positive territory by just a tad on Friday, taking its cue from a bullish overnight Wall Street close and a fresh all-time record closing on the S&P 500, though local companies continued to report mostly weak results.

Indices and sectors

The Straits Times Index (STI) ended 7.32 points or 0.21 per cent higher to 3,463.1, taking the year-to-date performance to +2.91 per cent.

The FTSE ST Mid Cap Index gained 0.48 per cent, while the FTSE ST Small Cap Index rose 0.35 per cent.

The Singapore Exchange traded a volume of 1,224.9 million shares valued at SG$1,021.7 million. Gainers outnumbered losers by 243/192.

Amongst the FTSE ST sectors, the top gainers were healthcare (+1.98 per cent), China (+1.16 per cent), China Top Index (+1.16 per cent) and technology (+1.07 per cent). Consumer services (-0.70 per cent) and maritime (-0.07 per cent) were the only two losing sectors.

Stocks

Ascendas Hospitality Trust Management (SGX:Q1P) said Friday that it had entered into a put and call option for the sale of its 50 per cent stake in Pullman Cairns International, a hotel in Queensland, Australia, to Shakespeare Property Group for AU$75.08 million (SG$79.9 million) in cash, according to Straits Times.

CapitaLand Limited (SGX:C31) announced Friday that it had successfully placed its entire issue worth SG$650 million of convertible bonds with institutional and accredited investors, according to Straits Times. The company intends to use the proceeds of the issue to refinance its existing debt and for working capital purposes. Upon full conversion of the bonds, 130,784,708 new shares will be issued at the conversion price of SG$4.97, as per present terms.

Macquarie Int. Infrastructure Fund Ltd. (SGX:M41) said on Friday that it had agreed to divest 81 per cent interest in the Hua Nan Expressway for SG$110 million in cash to Topwise Consultants Ltd, an existing shareholder in the Expressway, as reported by Straits Times. Previously, the fund divested its interests in Taiwan Broadband Communications, Changshu Xinghua Port and Miaoli Wind, and the divestment of the Expressway interest is the fund’s last, following which it will distribute the net proceeds and any residual cash, net of any liabilities, to shareholders by redemption of ordinary shares.

StarHub Ltd. (SGX:CC3) said net profit during the first quarter ended March 31 declined 12.4 per cent to SG$73.7 million, primarily due to higher operating expenses including rising cost of sales, according to Straits Times. Expenses also grew by an additional SG$6.2 million due to currency fluctuations.

Global agricultural commodity trader Olam International Ltd (SGX:O32) said Friday that net profit during the first quarter ended March 31 plunged 92.1 per cent to SG$31.26 million from SG$396.13 million in the prior year period, according to Channel News Asia. The company booked an exceptional loss of SG$97.2 million on account of a buyback of bonds. Revenue fell 11 per cent year-on-year to SG$4.32 billion, with sales volumes down 33 per cent. "Within the agricultural complex, we are very friendly to cocoa prices. We believe cocoa prices will strengthen from here, although it is already at its historical high. We expect coffee prices to go up as well. Similarly the (prices of) edible nuts – particularly the more expensive nuts like almonds and cashews and hazelnuts and macadamias and pecans – will go up,” said Mr Sunny Verghese, Group Managing Director and CEO, Olam International. “We expect the grain complex to be under pressure so wheat prices, andcorn prices (will likely) remain under pressure.”

Mermaid Maritime Public Company Limited (SGX:DU4) said during the first quarter ended March 31 it incurred a net loss of US$15.8 million (SG$21 million) compared to a net profit of US$5.2 million in the prior year period, primarily due to a downturn in the offshore services sector.

Straits Trading Co Ltd (SGX:S20) reported that during the first quarter ended March 31 earnings fell 58.6 per cent to SG$2.4 million while revenue declined 14.5 per cent to SG$145.6 million, due to lower contributions from the resources business owing to falling average tin prices. The company said average tin prices dropped 18.6 per cent to US$18,400 per tonne from US$22,600 per tonne in the prior year period.

Nobel Design Holdings Ltd (SGX:547) said it would delay the release of its first-quarter unaudited results by two weeks pending re-examination of its audited financial statements for the financial year 2014, and had therefore submitted an application to the Singapore Exchange for extension of time.

Yuuzoo Corporation Ltd (SGX:AFC) reported that for the first quarter ended March 31 it swung to earnings before interest and taxation (EBIT) of US$3.2 million from a loss of US$1.1 million in the year ago period, while revenues jumped 58 per cent to US$9.6 million.

Economic news, currency and insight

In a commentary on the disappointingly weak first-quarter earnings reports issued by Singapore listed companies, UBS Wealth Management equity analyst Lee Wen Ching said last week: "Among the universe of companies we track, 38 per cent met expectations, 52 per cent missed expectations and only 10 per cent beat expectations. These statistics imply that for every one company whose earnings beat expectations, there were five whose earnings missed the mark. Not surprisingly, we have seen earnings downgrades across the Street." According to Business Times, this does not bode well for the rest of the year 2015.

According to the Monetary Authority of Singapore (MAS), Singapore real estate investors have dialled back their enthusiasm for overseas properties. A MAS spokesman said: "The value of overseas property purchases by Singaporeans transacted by real estate agencies in Singapore fell from SG$3 billion in 2013 to SG$2 billion last year,” as reported by the Malaysia Chronicle. Investors had less enthusiasm for properties in choice destination Britain, following the heavy purchases during 2012 and 2013. "Prices of properties in Britain have appreciated and investors are now more selective," said Mrs Doris Tan, JLL's head of international residential property services in Singapore.

Figures from the Urban Redevelopment Authority released Friday showed that sales of new private residential units in Singapore jumped 83.4 per cent in April, compared to March, mainly due to 2 new condominium launches, according to Straits Times. During the month 1,344 units were launched, while 1,124 new homes were sold. On a year-on-year basis, sales in April were up 47.5 per cent over the prior year period when 762 new private homes were sold while 606 units launched.

On Wall Street, investor sentiment was dampened by reports on weak industrial output and consumer sentiment, resulting in the major indices all closing relatively flat for the day, though the S&P 500 managed to inch to another record high, according to Reuters. “With the markets treading, it's really reflecting what's happening in the general economy," said Warren West, principal at Greentree Brokerage Services in Philadelphia. “The rest of the economy's not breaking out, so how can the market?” The Dow Jones Industrial Average rose 20.32 points, or 0.11 percent, to end at 18,272.56. The Nasdaq Composite dropped 2.50 points, or 0.05 percent, to 5,048.29. The S&P 500 gained 1.63 points, or 0.08 percent, to end at 2,122.73.