the singapore exchange ended friday marginally in the black on flat volumes 206132015

Singapore stocks on Friday just managed to end in positive territory as higher oil prices helped boost the oil and gas sector, and investors took note of recurring speculation regarding China’s stimulus moves. However banks such as Oversea-Chinese Banking Corp Ltd (SGX:O39) and DBS Group Holdings Ltd (SGX:D05) were a drag due to concerns about bad debt charges arising from Singapore’s economic slowdown.

Indices and sectors

The Straits Times Index (STI) ended 7.05 points higher or +0.21 per cent to 3,426.22, taking the year-to-date performance to +1.81 per cent. The FTSE ST Mid Cap Index gained +0.28 per cent, while the FTSE ST Small Cap Index declined -0.07 per cent.

The SGX traded 1,029.2 million shares valued at SG$1,206.6 million. Gainers outnumbered losers by 242/183.

Amongst the FTSE ST sectors, the top gainers were maritime (+2.27 per cent), oil and gas (+1.35 per cent), China (+1.07 per cent) and industrials (+0.70 per cent). The top losers were basic materials (-1.53 per cent), healthcare (-0.81 per cent) and technology (-0.23 per cent).

Stocks

TT International Ltd (SGX:T09) reported a net loss during the three months ended December 31 of SG$10.5 million up from SG$7.1 million in the same period last year, while revenue fell by 17.6 per cent SG$62.4 million, primarily due to soft market conditions in Indonesia and Australia, according to the Straits Times.

Investment holding company Hafary Holdings Ltd (SGX:5VS) said second-quarter net earnings during the three months ended December 31 shot up 73 per cent to SG$4.3 million, while revenue rose 31.7 per cent to SG$33.5 million, according to the Straits Times.

The Singapore exchange has issued an advisory to investors to trade with caution in the shares of United Engineers Ltd (SGX:U04), the third such warning issued by the SGX on the company in the past six months. In response to a query from the SGX, the company said "it was not aware of any other reasons that could possibly explain the trading in its securities," apart from the announcements relating to discussions by controlling shareholders previously announced in August last year and February this year.

Meanwhile, the Business Times reported Saturday that Oversea-Chinese Banking Corp Ltd (SGX:O39) and its insurance arm did not agree to sell their stake in United Engineers to a company controlled by Thai billionaire Charoen Sirivadhanabhakdi. "OCBC Bank and GEH wish to update their respective shareholders that the parties are not able to reach an agreement on an appropriate transaction structure for the possible transaction and the exclusivity agreement has lapsed," OCBC said in a statement. OCBC and associated companies own around 36 per cent of United Engineers, which has a market capitalisation of US$1.5 billion (SG$2.03 billion).

Real estate owner developer and manager Perennial Real Estate Holdings Ltd (SGX:40S) announced a net profit of SG$20.97 million for the six months ended December 31 and revenues of SG$21.76 million.

United Overseas Bank Ltd (SGX:U11) revealed Friday that during the fourth quarter of this year several more problem accounts could surface and affect the operations of the bank, and these included a mid-size property developer and shipping firm in Singapore according to the Straits Times, quoted by NEWS.nom.co.

According to The Business Times, Singapore investment company Temasek Holdings sold 7.3 million ADRs of Alibaba Group Holding Ltd (NYSE:BABA) in the rally following the latter’s Initial Public Offering in September last year.

EMS Energy Ltd (SGX:5DE) announced that its wholly-owned subsidiary EMS Energy Solutions had secured a contract to build a derrick equipment set (DES) complete with full drilling equipment for an offshore tender rig from its major shareholder, Koastal Industries, according to a report in Sea Ship News. “Securing the second DES contract underscores the Group’s capabilities and ability to deliver as we pursue larger, higher-value projects with better margins,” said Ting Teck Jin, executive chairman and chief executive officer of EMS Energy. “Although the operating environment remains challenging amidst falling oil prices and a tight labour market in Singapore, we will leverage on our strengths and track record for delivering large-scale projects.” The firm also reported that revenue jumped to SG$48.8 million and gross profit increased 46.3 per cent to SG$6.1 million during the financial year ending 31 December 2014.

Neptune Orient Lines Ltd (SGX:N03) said its fourth quarter net loss plunged to US$85 million (SG$115 million) from US$137 million a year ago, though for the year as a whole, its net loss ballooned to US$260 million from US$76 million. This was the third successive full-year loss for the company. Revenue during 2014 fell by US$210 million to US$8.62 billion due to lower freight rates and cargo volumes. "Global economic prospects are uncertain. Overcapacity in the liner industry will persist. More port congestion, resulting from further deterioration in the labour situation on the US West Coast, is a potential risk factor," said NOL, as quoted by IHS Maritime 360. "The group will continue its focus on managing costs and operational efficiencies."

Commodities trader Olam International Ltd (SGX:O32) announced Friday that net profit during the six months ended December 31 crashed 9.7 per cent, mostly due to currency devaluation across its major markets such as Russia, Brazil and Australia, according to a report in Channel News Asia. The company reported a net profit of SG$118.74 million for the second quarter ended December 31 and SG$163.03 million for the first half of the year.

Economic news, currency and insight

On Friday the S&P 500 hit a new all-time high, and the Dow Jones Industrial Average closed above the 18,000 mark for the first time in 2015, boosted by good economic data out of Germany, and a strengthening oil price according to the Straits Times.

The Business Times reported today that Brent oil prices surged above the US$61 per barrel last week for the first time this year, responding to solid economic growth in Germany and an apparent resolution of the conflict in Ukraine, at least for the time being. The oil and gas sector in Singapore may therefore trade bullishly today.

The ice may break on the bailout terms between Greece and Germany, according to a report in the Straits Times. The paper quoted government officials who said Berlin would be open to negotiating on Greece’s budgetary requirements and privatisation provided the bailout agreement is renewed. "Europe – and this is Europe's success – is always about finding a compromise," Chancellor Angela Merkel said as she arrived for a summit of European Union leaders in Brussels. "You make compromises when the advantages outweigh the disadvantages. Germany is ready for that, but you also have to say that Europe's credibility depends on us sticking to the rules and that we deal with each other in a reliable way."

Eurozone finance ministers and the Greek leadership will meet again today in Brussels in an attempt to reach an agreement on the fate of the existing bailout programme.