singapore stocks participate in global rally following greek deal and gains in chinese stocks 841902

Singapore stocks surged higher by nearly one per cent, lifted by news of the accord between debt-laden Greece and its creditors, as well as another day of gains on Chinese stock markets.

Indices and sectors

The Straits Times Index (STI) ended 31.34 points or 0.96 per cent higher to 3,311.22, taking the year-to-date performance to -1.60 per cent.

The FTSE ST Mid Cap Index gained 0.48 per cent, while the FTSE ST Small Cap Index rose 0.69 per cent.

The Singapore Exchange traded a volume of 1,435.8 million shares valued at SG$872.1 million. Gainers outnumbered losers by 281/170.

Amongst the FTSE ST sectors, the top gainers were technology (+4.54 per cent), basic materials (+2.04 per cent), telecommunications (+1.72 per cent), healthcare (+1.40 per cent), China (+1.10 per cent) and real estate holding and development (+1.05 per cent). Sectors that ended in negative territory were utilities (-0.47 per cent) and maritime (-0.08 per cent).

Stocks

The Ascott, the serviced residence arm of CapitaLand Limited (SGX:C31), has tied up with the Qatar Investment Authority (QIA), a sovereign wealth fund, to set up a serviced residence fund worth US$600 million (SG$811 million) with equal contributions from The Ascott and QIA. According to the Straits Times, The Ascott will have the first right to manage any properties acquired by the joint-venture.

Keppel FELS, a subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), a wholly-owned company of Keppel Corporation Limited (SGX:BN4), has won a contract from Crystal Heights Holdings Limited (Crystal Heights), a company specialised in the offshore oil and gas market, to build a high specification lift boat worth US$85 million, according to a company statement. Scheduled for delivery in 4Q 2017, the lift boat will have provisions enabling it to operate in China, the Middle East and the Gulf of Mexico.

Property rental group and retailer Second Chance Properties Ltd (SGX:528) said net profit during the third quarter ended May fell 7.4 per cent to SG$3.95 million from the prior year period led by revenue which fell 2.7 per cent to SG$10.53 million. The company said business in the retail and service industries in Singapore was hurting due to the ongoing economic restructuring that was placing restrictions on foreign labour workforce, according to a report in The Edge Markets.

Vallianz Holdings Ltd (SGX:545) surged 8 per cent to SG$0.054 after the company said on Monday that it had secured a US$300 million contract to supply self-elevating platforms to a large national oil company in the Middle East, according to a report in Business Times. Vallianz expects to deploy the chartered vessels in the current quarter itself for a period of five years.

The top performer among technology stocks was Silverlake Axis Ltd (SGX:5CP), which jumped 9.24% higher.

Economic news

Greece agreed to draconian, some might say toxic terms in return for a three-year, €86 billion (SG$128.48 billion) bailout from international creditors, enabling Greece to avoid a crippling default and exit from the Eurozone. However, Greek Prime Minister Alexis Tsipras faces annoyance and resentment at home given that the terms accepted are viewed as worse than what were being negotiated five months ago, and he has reneged on his promises to the Greek electorate. The Independent Greeks party, which is Greece’s junior governing coalition partner, said it would not support the new bailout proposals but would continue as a member of the government. "The agreement speaks of 50 billion euros worth of guarantees concerning public property, of changes to the law including the confiscation of homes… We cannot agree to that." said party leader Panos Kammenos.

A recent report by recruitment specialist firm Hudson says hiring in Singapore during the second half of 2015 is likely to remain under pressure given that local employers are adopting a cautious outlook, according to Channel News Asia. Only 32.1 per cent of employers covered under the survey said they expected to increase the number of employees, a drop of 4.9 per cent from the previous six months.

Stocks jumped sharply higher on Wall Street on Monday, in tune with a global stocks rally, on news of the tentative new bailout the between Greece and its international creditors that removed fears of Grexit, according to Channel News Asia. The Dow Jones Industrial Average surged 217.27 points (1.22 per cent) to 17,977.68. The broad-based S&P 500 jumped 22.98 points (1.11 per cent) to 2,099.60, while the tech-rich Nasdaq Composite Index gained 73.82 points (1.48 per cent) at 5,071.51.