singapore stocks grind lower in a dull trading session 684922015

Weighed by bearish cues from Wall Street’s Friday close, and the continuing uncertainty on Greece, Singapore stocks ended marginally in the red on Monday after a desultory trading session featuring low volume and negative market breadth.

Indices and sectors

The Straits Times Index (STI) ended 13.34 points or 0.4 per cent lower to 3320.33, taking the year-to-date performance to -1.33 per cent.

The FTSE ST Mid Cap Index declined 0.56 per cent, while the FTSE ST Small Cap Index declined 0.72 per cent.

The Singapore Exchange traded a volume of 1,417.1 million shares valued at SG$1,010.4 million. Losers outnumbered gainers by 297/139.

Amongst the FTSE ST sectors, the gainers were real estate holding and development (+0.11 per cent), China (+0.05 per cent) and industrials (+0.01 per cent). The biggest losing sectors were technology (-4.02 per cent), basic materials (-1.59 per cent), oil and gas (-1.14 per cent) and telecommunications (-0.79 per cent).

Stocks

Spackman Entertainment Group Ltd (SGX:40E), which is listed on the CataList, announced its acquisition of a majority 88.89 per cent stake in Korean production company Delmedia, one of the leading producers of variety shows in Korea, for 1.60 billion Won (SG$2 million). According to the company, the acquisition had significant growth potential, especially in the Chinese market, said the Straits Times.

Singapore Exchange Limited (SGX:S68) has appointed veteran banker Loh Boon Chye as its next Chief Executive, according to TODAY. Mr. Loh will commence duties on July 14, and will take over from Mr Magnus Bocker, whose contract ends on June 30. “Boon Chye is no stranger to SGX and his knowledge and extensive experience in capital markets equip him well to take SGX forward,” said SGX chairman Chew Choon Seng.

Koyo International Ltd (SGX:5OC), an engineering services provider, announced Monday that Koyo Engineering, its wholly-owned subsidiary, had won two works contracts aggregating SG$17.3 million covering mechanical, electrical and plumbing works and maintenance at the Ngee Ann Polytechnic campus and one school zone under the Singapore Ministry of Education, according to the Straits Times.

Jasper Investments Limited (SGX:FQ7) has won management contracts with two oil and gas firms based on its experience in its existing oil and gas business, reports the Straits Times. According to a company statement, Jasper has been engaged to provide commercial management services to Global Shipping for a fee of US$60,000 (SG$81,400) per month, and to GoLNG for a fee of US$22,500.

Sinarmas Land Ltd (SGX:A26) has agreed with Cayman Islands-based KaiLong Holdings Limited (KLR) to acquire a strategic stake in KaiLong China Real Estate Investment Trust, the first Chinese Reit to be listed on the Singapore Exchange. The Reit will have an initial portfolio of seven business space properties in Shanghai and one office building in Chengdu in China, according to the Business Times.

Natural foods provider Yamada Green Resources Ltd (SGX:MC7) has announced a renounceable underwritten rights issue of 270.33 million new ordinary shares at an issue price of 7 cents each to raise gross funds of about SG$18.9 million. The rights would be offered on the basis of one for every two existing ordinary shares held, according to the Business Times.

T T J Holdings Ltd (SGX:K1Q), which is in the structural steel business, said net profit during the third quarter ended April 30 crashed 74 per cent to SG$1.6 million owing chiefly to lower sales and margins. Overall group revenue fell 56 per cent to SG$14.8 million, according to the Business Times.

Economic news

Samsung Asset Management’s Alan Richardson says the current decline in the Singapore interbank rate from a six-year high is only temporary, and that it will likely rise in line with interest rate hikes by the US Federal Reserve. That will enhance interest income and net interest margins at the major banks such as DBS Group Holdings Ltd (SGX:D05), Oversea-Chinese Banking Corp. Limited (SGX:O39) and United Overseas Bank Ltd (SGX:U11).

In another view, Bank of America Merrill Lynch economist Chua Hak Bin said in a report last week that the soon to be launched Singapore Savings Bonds could divert funds away from deposits in Singapore’s banking sector. Banks could therefore be hurt by these bonds, which he said could account for as much as 5 per cent of total individual bank deposits within five years, as reported by AsiaOne.

According to the Business Times, China Life Insurance, which is China’s largest life insurance provider, set up its first Singapore office on Monday. This is the first time the company has ventured outside of the Chinese mainland, Hong Kong and Macau.

On Wall Street overnight, the Dow Jones Industrial Average fell 82.55 points, or 0.46 percent, to 17,766.91, the S&P 500 lost 13.47 points, or 0.64 percent, to 2,079.36 and the Nasdaq Composite dropped 46.83 points, or 0.92 percent, to 5,021.63, as investors turned apprehensive regarding the increasingly likely interest-rate hikes by the Fed, and Greece.