singapore stocks join global downtrend falling 1 4 per cent 85732015

Singapore joined other Asian markets in a decline that followed sharp falls in the US and European markets driven by the crash in oil prices and ‘Grexit,’ a term being used to describe the fallout if Greece exits the eurozone. Crude oil has fallen nearly 10 per cent in just two days, and over 55 per cent since mid-June, to the lowest level seen since 2009. Greece may usher in to power a leftist, anti-austerity party in elections to be held January 25, and the political upheaval could ultimately force Greece to break away from the eurozone.

Singapore’s Straits Times Index (STI) ended 46.33 points lower or -1.39 per cent to 3,281.95 on Tuesday, taking the year-to-date performance to -2.47 per cent. The FTSE ST Mid Cap Index declined 0.46 per cent, while the FTSE ST Small Cap Index declined 0.30 per cent. The SGX traded 1,356 million shares at a value of SG$1,243.1 million. Losers outnumbered gainers 286/126.

Amongst FTSE ST sectors basic materials, technology and health care were the outperformers, gaining 2.58, 1.17 and 0.54 per cent respectively. Oil and gas was the biggest losing sector, down 3.37 per cent followed by industrials and financials, which both lost 1.17 per cent each.

In materials, Midas Holdings Ltd (SGX:5EN) jumped 7.81 per cent to SG$0.345. The SGX has warned investors to trade this stock with caution. In oil and gas, Keppel Corporation Ltd (SGX:BN4) slumped 4.26 per cent to SG$8.32, and SembCorp Industries Ltd (SGX:U96) fell 2.55 per cent to SG$4.21.

UE E&C Ltd (SGX:NI3) ended higher by 0.80 per cent to SG$1.26 even though private equity firm said its offer price to take over the company was final at SG$1.25 per share.

Artivision Technologies Ltd (SGX:5NK), a video advertising firm listed on Catalist, surged nearly 19 per cent after announcing it had secured contracts from three Israeli companies that include Globes Publisher Itonut, one of the oldest financial newspaper publishers in Israel. The other two companies, according to Business Times, are commercial video site Reshet Noga, and Web3, a digital media group.

Ocean Sky International Ltd (SGX:O05) shot up 11.85 per cent to SG$0.151 after the company clinched a non-binding memorandum of understanding to acquire property developer Link Holdings for SG$226.3 million. Link Holdings has a track record of over 10 years in property development and has already completed and sold 30 luxurious landed houses in Singapore, said the Business Times. Ocean Sky said in a statement that the deal is an opportunity to acquire an operating business in the property sector, with a track record and growth potential.

During 2014, the value of securities traded on the Singapore Exchange fell 25 per cent to SG$266 billion, according to Channel News Asia. However, traded value jumped 15 per cent in November and 8.2 per cent in December, both year-on-year, indicating that the prospects of the bourse may finally be on the mend after the disastrous penny stock scandal in late 2013. In another encouraging sign, the SGX reported record volumes in derivatives last year with 120 million contracts traded, up 7.4 per cent from 2013.

According to Business Times, share buybacks on the SGX aggregated SG$262.2 million in December, making it the highest month for share repurchases in 2014.

Lim Say Boon, chief investment officer of group wealth management and private banking at DBS Bank, said although the stock market started 2015 with a “new wall of worries,” the issues would soon pass, according to The Straits Times. “Stocks would be the best performing asset class in 2015,” he said at a briefing.

According to Asia One Business, Singapore’s tight labour market could get even tighter because the existing pool of housewives and retirees has almost been fully wooed back to work and the pool was effectively dried up. With major events looming such as Singapore’s 50th birthday bash and the South East Asian Games, more job vacancies would be created. Considering Singapore boasts full employment, workers would be in short supply, particularly in shops, restaurants and hotels. "In the retail sector, humans are still needed to serve the customers; machines can't be employed," said Elaine Ng, managing partner of HRBS, a human-resource consultancy firm.

Find up to date information on the Straits Times Index at City Index.