singapore stocks surge higher for the second consecutive session 693762015

Singapore stocks on the Straits Times Index traded higher Thursday, building on the gains of the previous trading session, and boosted by a more than 9 per cent gain in the shares of Noble Group Limited (SGX:N21). The Noble stock had touched a six-year low of 64.5 cents on Wednesday, but bounced back in high-volume trading to the top of the STI gainers list yesterday.

Sentiment was also positively impacted by the sharp gains overnight on Wall Street.

Indices and sectors

The Straits Times Index (STI) ended 21.9 points or 0.66 per cent higher to 3,347.67, taking the year-to-date performance to -0.52 per cent.

The FTSE ST Mid Cap Index gained 0.30 per cent, while the FTSE ST Small Cap Index rose 0.33 per cent.

The Singapore Exchange traded a volume of 1,506.5 million shares valued SG$1,141.7 million. Gainers outnumbered losers by 253/182.

Amongst the FTSE ST sectors, the big gainers were technology (+2.95 per cent), maritime (+1.78 per cent), consumer goods (+1.15 per cent) and healthcare (+1.11 per cent). The losing sectors were basic materials (-0.65 per cent), real estate holding and development (-0.10 per cent) and real estate (-0.02 per cent).

Stocks

Richard Elman, the chairman of embattled Noble Group Limited (SGX:N21) had written to investors to have faith in the company as it attempts to address issues of accounting practices and falling market value. “I would only ask you one thing — have a little confidence and patience in us. We will right the damage and will use all our best efforts to recover the share value,” Mr Elman said in a letter posted on the company’s website yesterday, according to TODAY. The company’s stock shot up 9.30 per cent to SG$0.705 in yesterday’s trading. Ratings agency Standard & Poor’s yesterday reiterated Noble’s rating of BBB-minus, the lowest investment grade rating, but revised the outlook to negative from stable. “The mismatch between cash realization and reported profit due to fair value accounting limits transparency and visibility in analyzing Noble’s cash flows,” said Cindy Huang, analyst at S&P, according toFT.

Otto Marine Ltd (SGX:G4F) wholly owned subsidiary, Swordfish 1 Pte Ltd, has entered a long-term bare boat charter contract worth US$27 million (SG$36 million) for a work maintenance vessel which is currently under construction, and will be delivered to an offshore vessel operator in the Southeast Asia region in third quarter of 2015, as per Offshore Shipping Online.

Swee Hong Ltd (SGX:QF6) announced Thursday that it had agreed to sell its rights to a foreign workers’ dormitory known as North Coast Lodge for SG$30 million to private equity firm Crest Capital Asia, the Business Times reported.

Steel trading company Albedo Limited (SGX:5IB) announced Thursday that it had agreed to acquire a 51 per cent stake in China iMyth Company Pte Ltd, a Taiwanese aesthetic medicine group, from China Medical Investments Company Pte Limited for SG$18.9 million, according to Business Times. The acquisition will serve as a launching pad for expansion into China’s fast-growing healthcare market.

EMAS Offshore Ltd (SGX:UQ4) announced Wednesday that it had won a charter contract worth US$30 million covering four of its offshore marine vessels. The vessels would be chartered to EMAS AMC, a wholly owned subsidiary of 75.5 per cent EMAS Offshore shareholder Ezra Holdings Limited (SGX:5DN). According to the company, the contract was awarded following a competitive tender process.

Economic news

According to a cost of living survey by ECA International, it is cheaper for expatriates to live in Manhattan and New York City rather than Singapore, which ranks number 19 on the list of the world’s top 20 most expensive cities for expatriates, said a report in TODAY.

On Wall Street overnight, stocks rebounded on strong retail sales in the US, according to Reuters. The Dow Jones Industrial Average rose 38.97 points, or 0.22 percent, to 18,039.37. The S&P 500 gained 3.66 points, or 0.17 percent, to 2,108.86 and the Nasdaq Composite added 5.82 points, or 0.11 percent, to 5,082.51.