singapores straits times index is down 1 per cent for the second day in a row 918522015

Singapore’s Straits Times Index suffered its second consecutive 1 per cent fall on Tuesday, with concerns swirling around the debacle in Chinese stock markets, which fell an additional 1.68 per cent after their 8.5 per cent fall on Monday. Overnight losses on Wall Street also weighed on the Singapore market.

Apart from the mainline index, losses were broad-based given the comparatively smaller declines in the mid-cap and small cap indices, and the fairly large negative breadth.

Notably, the STI closed below a key technical support level of 3,300.

Indices and sectors

The Straits Times Index (STI) ended 32.33 points or 0.98 per cent lower at 3,281.09, taking the year-to-date performance to -2.50 per cent.

The FTSE ST Mid Cap Index declined 0.85 per cent, while the FTSE ST Small Cap Index declined 0.38 per cent.

The Singapore Exchange traded a volume of 2,296.9 million shares valued at SG$1,370.6 million. Losers outnumbered gainers by 303/155.

Amongst the FTSE ST sectors, the top losers included maritime (-2.35 per cent), oil and gas (-1.59 per cent), China (-1.43 per cent), industrials (-1.23 per cent) and China top index (-1.22 per cent). There were no gaining sectors for the second consecutive day.

Stocks

Great Eastern Holding Limited (SGX:G07) fell 1.01 per cent to SG$23.50. Net profit during the second quarter rose 14 per cent to SG$277.7 million, boosted mainly by a post-tax profit of SG$119.9 million from the sale of an investment in Chinese firm New China Life, reports Straits Times. Operating profit from the insurance business was down 7 per cent to SG$132.2 million, though the prior year quarter was boosted by tax provisions from its investment linked fund in Singapore.

Lian Beng Group Ltd (SGX:L03) fell 0.91 per cent to SG$0.545. For the fourth quarter, the civil engineering and construction firm said net profit surged 49.6 per cent to SG$54.2 million while revenue jumped 20.6 per cent to SG$177.1 million. "We are actively seeking opportunities local and overseas to further enrich our revenue sources," said Executive chairman Ong Pang Aik.

Keppel Infrastructure Trust (SGX:A7RU) said net profit for the quarter ended June 30 was SG$2.66 million, 5.2 per cent up on the SG$2.53 million in the prior year period. However, revenue was down 14.2 per cent to SG$114.4 million, largely on the back of lower town gas tariffs arising from lower fuel costs, according to Straits Times. Distribution per unit (DPU) for the quarter was 0.7835 Singapore cents, down from 0.82 cents in the prior year quarter.

Parkway Life REIT (SGX:C2PU) gained 0.42 per cent to SG$2.37. The trust reported a 15.5 per cent rise in its distribution per unit (DPU) for the second quarter to 3.35 Singapore cents, according to the Business Times.

United Overseas Insurance Limited (SGX:U13) said Tuesday that net profit during the second quarter slumped 47.8 per cent year-on-year to SG$5.09 million as gross premiums fell 3.9 per cent to SG$30.76 million mainly due to portfolio pruning by the management, according to the Business Times. Annualised earnings per share were 33.29 Singapore cents, down from 53.11 cents in the prior year period.

Sing Holdings Limited (SGX:5IC), a property development and investment group, said net profit for the second quarter ended June 30 jumped 590.5 per cent to SG$2.244 million, up from SG$325,000 in the prior year period, according to the Business Times.

Economic news

Flash estimates for the NUS Singapore Residential Price Index (SRPI) show that prices of completed private apartments fell 1.9 per cent during the first half of this year. That decline follows on the heels of a fall of 1.3 per cent in the second half of last year, as well as a 3.7 per cent slump in the first six months of last year. Units in the Singapore Central region were the biggest losers in the first half of this year, down 2.5 per cent, as reported the Straits Times.

The Monetary Authority of Singapore has formed a new 26-member Financial Centre Advisory Panel to “strengthen the dialogue and partnership between MAS and the financial industry, to drive the growth and development of Singapore’s financial centre.” The advisory panel will be chaired by MAS managing director Ravi Menon, and will include among its members financial industry luminaries such as the chief executives of all three local banks – DBS Group Holdings' Mr Piyush Gupta, OCBC's Mr Samuel Tsien and United Overseas Bank's Mr Wee Ee Cheong – and newly appointed Singapore Exchange chief executive Loh Boon Chye.

On Wall Street, stocks closed higher Tuesday, as losses on Chinese stock exchanges moderated and oil prices recovered. However, earnings reports were mixed and economic data was soft. The S&P 500 index added 25.61 points, or 1.2 per cent, to 2,093.25, the Dow Jones Industrial Average gained 189.68 points, or 1.1 per cent, to 17,630.27 and the Nasdaq Composite Index added 49.43 points, or 1 per cent, to 5,089.21.