singapores straits times index closes below 3000 1107442015

Singapore’s Straits Times Index plunged for the fifth successive session on Friday, as global concerns rose in relation to China’s economic growth following the latter’s shock contraction in manufacturing activity at the fastest pace since the global financial crisis in 2009. Heightened hostilities between North and South Korea also weighed on emerging and Asia Pacific currencies and stocks.

The overnight sell-off on Wall Street also dampened investor sentiment at the open of Friday’s trading, marked by good volumes and highly negative market breadth, as well as closing below the technically important level of 3,000.

Indices and sectors

The Straits Times Index (STI) ended 38.77 points or 1.29 per cent lower at 2,971.01, taking the year-to-date performance to -11.71 per cent.

The FTSE ST Mid Cap Index declined 1.91 per cent, while the FTSE ST Small Cap Index declined 2.15 per cent

The Singapore Exchange traded a volume of 1,936.7 million shares valued at SG$1,541.8 million. Losers outnumbered gainers by 368/129.

Amongst the FTSE ST sectors, the big losers included technology (-11.58 per cent), healthcare (-2.64 per cent), maritime (-2.60 per cent), China top index (-2.07 per cent), oil and gas (-1.74 per cent), consumer goods (-1.63 per cent), financials (-1.59 per cent) and China (-1.59 per cent). The only gaining sector was utilities (+1.68 per cent).

Stocks

Frasers Hospitality Trust (SGX:ACV) announced on Friday its acquisition of a 259-unit serviced apartments residence Fraser Suites Dalian for RMB481.37 million (SG$100.29 million). Scheduled to open in 2017, the property is a part of the Europark Tower development that comprises a 100,000 square metre lifestyle shopping mall, designer offices and luxury apartments, according to Channel News Asia.

Perennial Real Estate Holdings Limited (SGX:40S) said in a statement Friday that it had entered a joint-venture deal with Shangri-La Asia for the development of an integrated mixed-use complex in Ghana, according to Channel News Asia. Perennial will pay SG$21.3 million to Shangri-La for a 55 per cent stake in a 49,874 square metre site located in the prime airport district of Accra, the capital of Ghana. The mixed-use site will include a hotel, residential towers, office tower, shopping malls and serviced apartments.

GuocoLand Limited (SGX:F17) said in a stock market filing last week that it is selling its Dongzhimen (DZM) mixed-use development project in Beijing to China Cinda Asset Management for RMB10.5 billion (SG$2.3 billion), and said the transaction would generate a net gain of RMB1.58 billion, according to Channel News Asia. The project has 91,287.7 square metres that can be utilised for offices, commercial space, apartments and underground parking lots.

Silverlake Axis Ltd (SGX:5CP) crashed 24.40 per cent to SG$0.65 after the company requested a halt in trading following the release of a 42 page report that recommended the stock be short sold for a price target of SG$0.29. The report was authored by somebody known merely as “razor99,” and according to the Business Times, Silverlake may be the fourth company on the Singapore exchange to become a victim of targeted short-selling, with Noble Group Limited (SGX:N21) being the most notable case of late.

Developer Oxley Holdings Ltd (SGX:5UX) reported a net profit of SG$16.6 million in its fourth quarter ended June 30, up 70 percent, while revenue surged 134 per cent to SG$193.8 million on the back of recognition of revenue from construction progress in seven mixed residential projects said the Straits Times.

Shares in Pacific Andes Resources Development Ltd (SGX:P11) were knocked down nearly 29 per cent to SG$0.030 on news of the company being investigated by the Monetary Authority of Singapore and the Commercial Affairs Department for an offence under the Securities and Futures Act, the Business Times reported.

Economic news

The Malaysian ringgit on Friday fell to a fresh 17 year low against the US dollar to SG$4.1780 per dollar amidst a political crisis, commodity prices and a departure of international investors out of emerging markets. Around 1:45 PM Friday, 1 Singapore dollar was worth 2.9678 ringgit, up over 1 per cent.

Speaking at the National Day Rally on Sunday Prime Minister Lee Hsien Loong warned that there were no easy choices on the issues of immigration and foreigners, according to the Business Times. In a hard choice, the Singaporean economy would suffer if it closed its doors to foreign workers; on the other hand if too many foreigners were allowed in, the country’s society would be adversely affected.

On Wall Street on Friday, stocks slumped as investors were faced with fresh evidence of China’s economic problems and its manufacturing slowdown. In the fourth successive losing session that was also the worst in nearly four years the Dow Jones Industrial Average lost more than 500 points, or 3.12 per cent, while the broader S&P 500 gave up 3.19 per cent and the Nasdaq Composite shed 3.52 per cent.