singapore stocks jump over 2 per cent 1514972015

Singapore stocks responded to a global uptrend in energy prices and commodities by recording a sharp 2 per cent plus jump on Wednesday.

The Straits Times Index scored its third successive winning session, boosted by sharp advances in stocks such as commodity traders Noble Group Limited (SGX:N21) (+6.6 per cent) and Wilmar International Limited (SGX:F34) (+.71 per cent), marine engineering companies Sembcorp Marine Ltd (SGX:S51) (+6.3 per cent) and Keppel Corporation Limited (SGX:BN4) (+3.76 per cent) and banks such as United Overseas Bank Ltd (SGX:U11) (+3.6 per cent) and DBS Group Holdings Ltd (SGX:D05) (+3.31 per cent).

Lending credence to the upward move on the SGX was the sharply higher volume traded during the day, and the market breadth, which was highly skewed in favour of the bulls.

Indices

The Straits Times Index (STI) ended 64.4 points or 2.22 per cent higher at 2,961.81, taking the year-to-date performance to -11.99 per cent.

The FTSE ST Mid Cap Index gained 1.22 per cent, while the FTSE ST Small Cap Index rose 2.08 per cent.

The Singapore Exchange traded a volume of 1,967.6 million shares valued at SG$1,583.1 million. Gainers outnumbered losers by 352/98.

Amongst the FTSE ST sectors, the gaining sectors included basic materials (+5.38 per cent), oil and gas (+4.54 per cent), technology (+3.27 per cent), CataList index (+2.59 per cent), maritime (+2.44 per cent), industrials (+2.35 per cent), financials (+2.21 per cent), and China Top Index (+2.14 per cent). Telecom (-0.08 per cent) was the only sector to end in the red.

Stocks

Swiber Holdings Limited (SGX:BGK) shot up 6.60 per cent to SG$0.210. The company says it will maintain order procurement momentum by focusing on business opportunities in sustained field development activity in shallow waters, according to the Business Times.

EPC services provider PEC Ltd. (SGX:IX2) was unchanged yesterday at SG$0.39. The company disclosed Wednesday that it was owed about SG$19 million from client Jurong Aromatics Corporation (JAC), which has been put into receivership. PEC may, therefore, be forced to report a net loss for fiscal 2015 ended June, Business Times said.

Commodities trader Noble Group Limited (SGX:N21) jumped 6.6 per cent to SG$0.405. According to the Business Times, which cited four sources, the company’s senior US metals traders Scott Evans and Jeff Romanek have departed the company. Noble has suffered a series of high-profile departures in recent times, the Business Times said.

Oxley Holdings Ltd (SGX:5UX) clarified Wednesday that share acquisitions in International Healthway Corporation Ltd (SGX:5WA) by its executive and deputy CEO were purely “personal and independent investment decisions,” and had nothing to do with the ongoing business activities at Oxley. “Mr Ching and Mr Low are experienced and sophisticated investors who absolutely make their own independent investment decisions based on their self-evaluated criteria," the company said, according to the Business Times.

Economic news

Data released by the Monetary Authority of Singapore (MAS) yesterday showed that Singapore’s total foreign reserves jumped to SG$357.8 billion in September from SG$353.2 billion in August. According to the Straits Times Singapore’s reserves have risen steadily every month since April this year. Foreign reserves in September were up 5.4 per cent on a year-on-year basis.

On the other hand, Chinese foreign exchange reserves declined by US$43.3 billion (SG$61.2 billion) in September owing chiefly to intervention by the country’s central bank to stabilise the yuan after its surprise devaluation.

Analysts expect the MAS to weaken the Singapore dollar by around 1 per cent next week when it undertakes its biannual monetary policy review. The central bank is expected to take into account the slowdown in the republic’s economy and full-year inflation nearing negative readings, the Straits Times said. According to DBS economist Irvine Seah, MAS’ current policy aimed at a modest and gradual appreciation of the Singapore dollar “becomes a difficult policy to maintain” given that the economy is likely to fall into a technical recession.

According to an estimate by the Singapore Chinese Chamber of Commerce and Industry (SCCCI), small and medium-sized enterprises have suffered losses of about 10 to 30 per cent due to the haze problem. Some of these businesses may be forced to retrench Singaporeans to stem losses, warns Channel News Asia.

Data from Colliers International shows there has been a sharp increase in the number of properties being auctioned as mortgage sales. Auction listings shot up 52.7 per cent higher on a year-on-year basis to 171 during the first nine months of this year, Colliers said, attributing the rise to higher interest rates and the growing availability of rental homes.

On Wall Street Wednesday, stocks ended in positive territory after volatile trading that saw a rebound in biotechnology as well as resources stocks. According to Reuters, the Dow Jones Industrial Average rose 0.73 percent to end at 16,912.29, the S&P 500 ended 0.8 percent higher at 1,995.83 and the Nasdaq Composite added 0.9 percent to 4,791.15.