singapores straits times index inches higher despite poor gdp data 851282015

Singapore stocks scraped into positive territory as investors digested the implications of the Greek deal and waited for its implementation by the Greek Parliament by the Wednesday deadline imposed by the Eurozone, and despite dismal GDP growth estimates issued by the Ministry of Trade and Industry (MTI).

Indices and sectors

The Straits Times Index (STI) ended 5.28 points or 0.16 per cent higher at 3,316.5, taking the year-to-date performance to -1.45 per cent.

The FTSE ST Mid Cap Index gained 0.15 per cent, while the FTSE ST Small Cap Index rose 0.04 per cent.

The Singapore Exchange traded a volume of 1,223.4 million shares valued at SG$892.4 million. Gainers outnumbered losers by 222/216.

Amongst the FTSE ST sectors, the top gainers included utilities (+0.79 per cent), basic materials (+0.69 per cent), industrials (+0.62 per cent), CataList index (+0.62 per cent), China (+0.54 per cent) and healthcare (+0.54 per cent). Sectors that ended in negative territory included technology (-1.18 per cent), telecommunications (-1.02 per cent) and oil and gas (-0.28 per cent).

Stocks

Capitaland Mall Trust (SGX:C38U) is to acquire Bedok Mall from its sponsor CapitaLand in a SG$780 million deal, according to TODAY. The deal for the 222,500 square-foot mall will boost the asset size of the trust from SG$10.2 billion as of March 2015 to about SG$11 billion.

Oil and gas services company NauticAWT launched its initial public offering of 28 million shares at SG$0.20 each to raise about SG$2.8 million in net proceeds as it seeks to expand its business and invest capital equipment. 1 million shares will be sold in the public offer, while the balance of 27 million shares will be privately placed. Listing and trading of the company’s shares are expected to commence on July 23 on the Singapore Exchange Catalist board.

Economic news

The Singapore economy severely disappointed on growth expectations during the second quarter of 2015, with GDP contracting 4.6 per cent on a quarter on quarter basis, said the Ministry of Trade and Industry while providing advance estimates. Economists had predicted a contraction of only 1.5 per cent. On a year-on-year basis, GDP grew a mere 1.7 per cent, led by a contraction in the manufacturing sector. This was far worse than the expectations of a group of 19 economists at Bloomberg, of which only four had expected Q2 GDP to report below two per cent. The data led analysts to warn that the outlook for the Singapore economy remains cloudy, particularly in the light of slowing Chinese growth, according to TODAY

Responding in Parliament to questions regarding the impact of the Greek debt crisis, Culture, Community and Youth Minister Lawrence Wong clarified that Singapore has not suffered any financial impact due to the Greek default on its repayment to the International Monetary Fund because the Republic is only exposed financially to IMF as a lender and not to its borrowing countries.

An investor sentiment survey by JP Morgan showed that retail investors in Singapore are gaining confidence in their outlook for the economy and stock market in the next six months, according to Channel News Asia. About 53 per cent of those surveyed for the JP Morgan Investor Confidence Index expected the Straits Times Index to rise, up from 46 per cent in the same survey six months ago. About 42 per cent of the respondents expected a better local and global economic environment, compared to 37 per cent in the previous survey.

Stocks moved higher on Wall Street on Tuesday, the fourth session in the market’s current winning streak, as the energy sector rebounded and the market consolidated its gains from the Greek deal. The Dow Jones Industrial Average rose 75.9 points, or 0.42 percent, to 18,053.58, the S&P 500 gained 9.35 points, or 0.45 percent, to 2,108.95 and the Nasdaq Composite added 33.38 points, or 0.66 percent, to 5,104.89.