singapore stocks pressured by the failure of greeces negotiations with creditors 711482015

Singapore stocks, like their regional counterparts, were weighed down Monday due to the continuing uncertainty on a resolution of the Greece credit crisis and the possibility of a default, as well as negative cues from Wall Street overnight. Apprehensions about a more widespread outbreak of the MERS virus also affected market sentiment.

The broader market continued to suffer investor apathy and losing stocks outnumbered those gaining by a substantial margin.

Noble Group Limited (SGX:N21) was the top STI gainer of the day, reacting to buybacks by the company. The stock gained over 5 per cent in high-volume trading and closed at SG$0.720.

Indices and sectors

The Straits Times Index (STI) ended 30.72 points or 0.92 per cent lower to 3,323.13, taking the year-to-date performance to -1.25 per cent.

The FTSE ST Mid Cap Index declined 0.44 per cent, while the FTSE ST Small Cap Index declined 0.66 per cent.

The Singapore Exchange traded a volume of 1,052.7 million shares valued at SG$937.1 million. Losers outnumbered gainers by 305/126.

Amongst the FTSE ST sectors, the only gainers were technology (+1.67 per cent) and basic materials (0.62 per cent). The losing sectors were healthcare (-1.45 per cent), oil and gas (-1.35 per cent), telecommunications (-1.12 per cent), real estate holding and development (-1.11 per cent) and maritime (-1.11 per cent).

Stocks

Australia-based residential property development company AVJennings Ltd (SGX:A05) announced Monday that it had acquired the development rights of a land parcel in Australia’s New South Wales that could be expected to yield about 540 lots, enabling the company “to deliver quality residential communities to customers over coming years,” according to Straits Times.

Ezra Holdings Limited (SGX:5DN) said Monday that its subsea services division had won several global contracts worth over US$115 million (SG$154.4 million), including options, according to the Straits Times. The projects included the laying of a 23.2 km rigid pipeline for the development of the Aviat field in the North Sea, as well as providing engineering and offshore support in West Africa to an oil major.

E&P company KrisEnergy Holdings Ltd (SGX:SK3) announced Monday that Keppel Corporation Limited (SGX:BN4) will support its forthcoming rights issue of SG$165.6 million by subscribing to its full entitlement of approximately 31.3 per cent, as well as act as a sub-underwriter for part of the other rights shares, according to Channel News Asia.

Mapletree Greater China Commercial Trust (SGX:RW0U) said Monday that it had acquired Sandhill Plaza, a premium business park property in Shanghai for about SG$402 million from MSREF VII Leaphart BV, as reported by Deal Street Asia.

Noble Group Limited (SGX:N21) announced Monday its buyback of a second batch of 25 million shares that were purchased on Friday at an average price of SG$0.6728, as it moved to shore up its stock price and reinstate confidence among its investors.

Economic news

Data released Monday by the Ministry of Manpower showed that total employment in Singapore shrank for the first time after five years of strong growth. In the first quarter of 2015 the total number of employees fell by 6,100 compared to the previous quarter, though on a year-on-year basis total employment grew 2.7 per cent to 3,617,800 as at end March. According to analysts, the hiring trend has eased given Singapore’s slower growth trajectory, according to TODAY.

On Monday, the Department of Statistics released data that showed Singapore’s retail sales rose 5 per cent in April compared to the prior year period, boosted mainly by higher sales of motor vehicles, telecom equipment and computers and departmental stores, according to Channel News Asia. On a month on month basis retail sales were higher by 0.8 per cent in April, clocking a total of SG$3.3 billion. Dr Tan Khay Boon, senior lecturer at SIM Global Education, observed that people now tended to spend more on necessities and were cutting down on luxury, as evidenced by a decrease in recreational sales and higher sales at supermarkets.

Data released Monday by the Urban Redevelopment Authority showed that sales of new private homes fell nearly 50 per cent in May compared to the previous month due to a dearth of major new projects in the market. Developers sold only 638 homes in May, down 45 per cent from 1,167 in April, as reported by TODAY. On the other hand, in the executive condominium (EC) segment, sales jumped 64 per cent to 207 units in May, due primarily to the launch of the Westwood Residences project in Westwood Avenue.

On Wall Street Monday, stocks fell as investors digested the possibility of a default by Greece following the breakdown in negotiations over the weekend. The Dow Jones Industrial Average fell 107.67 points, or 0.6 percent, to 17,791.17, the S&P 500 lost 9.68 points, or 0.46 percent, to 2,084.43 and the Nasdaq Composite dropped 21.13 points, or 0.42 percent, to 5,029.97.