singapores straits times index boosted by chinese monetary easing 1671292015

Shares on the Singapore exchange rose again on the back of the Chinese rate cut, in line with gains in several regional stock markets.

The benchmark index for the SGX, the Straits Times Index, recorded its fifth consecutive daily gain, shrugging off worse than expected manufacturing data that showed Singapore’s factory output declined 4.8 per cent in September.

Indices and Sectors

The Straits Times Index (STI) ended 16.46 points or 0.54 per cent higher to 3,084.92, taking the year-to-date performance to -8.33 per cent.

The FTSE ST Mid Cap Index gained 0.97 per cent, while the FTSE ST Small Cap Index rose 0.25 per cent.

The Singapore Exchange traded a volume of 1,814.8 million shares valued at SG$1,119.3 million. Gainers outnumbered losers by 230/185.

The top gaining FTSE ST sectors included consumer goods (+1.65 per cent), China (+1.56 per cent), telecommunications (+1.22 per cent), real estate holding and development (+1.2 per cent), industrials (+1.09 per cent) and utilities (+1.09 per cent). The losing sectors were maritime (-1.54 per cent), Catalist Index (-1.25 per cent), oil and gas (-1.12 per cent) and basic materials (-0.98 per cent).

Stocks

Raffles Medical Group Ltd. (SGX:R01) said net profit during the quarter ended September 30 grew 1.2 per cent year on year to SG$15.6 million, while revenue rose 7.4 per cent to SG$101.5 million. The company also revealed it had acquired a 55 per cent stake in 10 clinics in the region in a move to boost its overseas turnover, the Straits Times reported. "One day, I don't know when, (but) as soon as possible I hope, our total revenue will be more than 50 per cent from overseas," said executive chairman Loo Choon Yong.

First Ship Lease Trust (SGX:D8DU) jumped 4.71 per cent to SG$0.178. The company said Monday that it had agreed to purchase a 2007, Japanese-built, medium range product (MR) tanker for US$21.8 million (SG$30.5 million). The company expects to deploy the tanker on an annual cash-on-cash yield of 14.5 per cent based on a conservative time charter equivalent (TCE) rate of US$16,500 per day over the next three years, the Straits Times said.

Oxley Holdings Ltd (SGX:5UX) was up 2.35 per cent to SG$0.435. The company is issuing four-year bonds of up to SG$125 million with a fixed interest rate of 5 per cent, and retail investors may participate in the issue subject to a minimum subscription amount of SG$2,000. The proceeds will be used for working capital and capital expenditure outlay as well as general corporate purposes, including refinancing debt.

Pawnbroking and secured moneylending services provider Valuemax Group Ltd (SGX:T6I) said it suspected an employee had committed a criminal breach of trust and that it had reported the matter, which was detected after an internal review, to the police. "To the best of the company's knowledge, this is an isolated case where none of the pledges at the outlet was affected," ValueMax said in a statement, according to the Straits Times.

Ascendas India Trust (SGX:CY6U) said that distribution per unit rose 8 per cent year-on-year to 1.37 cents during the second quarter ended September 30, while total property income grew 10 per cent to 1.7 billion rupees (SG$36.5 million), on the back of rental income from newly acquired property and overall improvements in portfolio rental and occupancy. The trust has declared a distribution of 2.74 Singapore cents, the Straits Times said.

Logistics services provider GKE Corporation Ltd (SGX:595) is intending to buy a 70 per cent stake in Marquis Services, a marine logistics service provider and operator of chemical warehouses, for SG$2.94 million.

Leader Environmental Technologies Ltd (SGX:LS9) may report a significant loss for the third quarter ended September 30 on the back of doubtful debts and an impairment in the value of an investment in an associate, the Straits Times said.

Frasers Hospitality Trust (SGX:ACV) said Monday that it will launch a second serviced residence comprising 239 units in Bangkok in 2016. "Thailand is an ideal market for the introduction of our Modena by Fraser brand, which has been refreshed to appeal to socially conscious millennials who seek form and function," said chief executive Choe Peng Sum, as quoted by Straits Times.

The Noble Group Limited (SGX:N21) shot up 3.7 per cent to SG$0.56 on volumes of 97 million shares.  Golden Agri-Resources Ltd (SGX:E5H)  was up 5.12 per cent to SG$0.410 after 54 million shares changed hands. Communications products company Addvalue Technologies Limited (SGX:A31) surged 40.39 per cent to SG$0.073 on volume of 77 million shares. Yuuzoo Corporation Ltd (SGX:AFC) resumed its upward march, gaining 2.6 per cent to SG$0.197 on a volume of 66 million shares. ISR Capital Ltd (SGX:5EC) zoomed 14.3 per cent to SG$0.008 after 2.6 million shares changed hands.

Economic news

Singapore manufacturing contracted for the eighth successive month in September, raising the spectre of a technical recession in the third quarter, the Straits Times said. Factory output declined 4.8 per cent, worse than market expectations of 4.5 per cent, as lack lustre global demand crimped orders. An increase of output of 26.3 per cent in the biomedical manufacturing cluster failed to nullify the 24 per cent decline in the transport and engineering sector, primarily due to the marine and offshore engineering segment.

On Wall Street Monday, the mainline indices ended with marginal losses, weighed by soft oil prices and the consequent selling in energy shares. Investors also chose to keep a low profile given the Fed’s policy meeting commencing Tuesday. A sharp 3 per cent fall in Apple, on the eve of its earnings report, also depressed the markets. The Dow Jones Industrial Average fell 23.65 points, or 0.13 percent, to 17,623.05, the S&P 500 lost 3.97 points, or 0.19 percent, to 2,071.18 and the Nasdaq Composite added 2.84 points, or 0.06 percent, to 5,034.70.