singapore stocks move higher despite global concerns 851472015

Singapore’s Straits Times Index, as well as its mid-cap and small cap indices, rose higher Wednesday on the back of a positive overnight Wall Street close and better than expected Chinese GDP growth.

However, investors were cautious given that Greece was to vote on the latest bailout proposals and Fed Chair Janet Yellen was due to testify before Congress. Meanwhile, data on private home sales in Singapore showed a continuing slump during June.

Indices and sectors

The Straits Times Index (STI) ended 22.36 points or 0.67 per cent higher to 3,338.86, taking the year-to-date performance to -0.78 per cent.

The FTSE ST Mid Cap Index gained 0.07 per cent, while the FTSE ST Small Cap Index rose 0.25 per cent.

The Singapore Exchange traded a volume of 1,243.4 million shares valued at SG$860.2 million. Gainers outnumbered losers by 232/209.

Amongst the FTSE ST sectors, the top gainers included technology (+3.88 per cent), industrials (+2.38 per cent), consumer goods (+0.75 per cent) and consumer services (+0.72 per cent). Sectors that ended in negative territory included basic materials (-0.96 per cent), China top index (-0.72 per cent) and telecommunications (-0.69 per cent).

Stocks

Sembcorp Marine Ltd (SGX:S51) announced on Wednesday that it had won a contract worth approximately US$1 billion (SG$1.37 billion) to build a new DP3 semi-submersible crane vessel, the world’s largest, for Heerema Offshore Services, according to Channel News Asia.

StemCell United Ltd, a Singapore-based biotechnology company headquartered in Australia, will float a public offer of 23 million new shares to be sold at AU$0.20 each and to be listed on the Australian Securities Exchange (ASX), reported TODAY. Companies are increasingly looking at listing on the ASX, which boasts of higher trading volumes and does not suffer from technical issues or muted investor sentiment as the Singapore Exchange.

Singapore Airlines Ltd. (SGX:C6L) flew 1.58 million passengers in June, down 0.9 per cent from the prior year month, while its load factor slumped to 79.9 per cent from 81.5 per cent a year ago, according to Straits Times.

Economic news

Fed Chair Janet Yellen said in testimony before Congress that a hike in interest rates remained likely this year amidst an improving US economy. Her remarks led to fresh dollar strength against the major global currencies.

After a stormy debate, the Greek Parliament approved the stiff austerity proposals imposed by international creditors as the price to qualify for a three-year, €86 billion bailout package that would allow the near bankrupt country to stay afloat and continue in the Eurozone.

Data from the Singapore’s Urban Redevelopment Authority showed that developers sold 375 private homes in June, down 42 per cent from the 643 homes sold in May, and 22 per cent lower than 482 units sold in June 2014. According to TODAY, sales of new private homes have been pressured due to the midyear school holidays and the continuing government measures to cool Singapore’s real estate market.

According to Singapore’s Department of Statistics, retail sales jumped 6.1 per cent in May compared to the prior year month, led chiefly by a sharp rise in the sales of motor vehicles, as reported by Channel News Asia. Excluding motor vehicles retail sales were up just 0.9 per cent from a year ago. Retail sales rose 2.5 per cent in May compared to April.

Stocks moved lower on Wall Street on Wednesday, ending their four-day winning streak, as violent protests in Greece against the new austerity proposals created fresh worries regarding the country’s bailout and its continued membership of the Eurozone. The Dow Jones Industrial Average dipped 3.41 points (0.02 per cent) to 18,050.17. The broad-based S&P 500 lost 1.55 points (0.07 per cent) at 2,107.40, while the tech-rich Nasdaq Composite Index fell 5.95 points (0.12 per cent) to 5,098.94.