Daily Markets Briefing: STI up 0.4%

As a recap, the STI registered a 0.4% higher close despite rising as much as 0.7% intraday yesterday; the 3470 recent peak remains a tough obstacle to overcome in the near term.

With local investors likely to stay by the sidelines in anticipation of the US Federal Reserve’s release of its minutes tonight, we could see the index consolidate around current levels today.

On the downside, we still see the immediate base at the 3400 resistance-turned-support.
 

Singapore’s listed banks averaged total returns of 18% over the past year

“We believe NIMs for the sector will move quite a bit in the coming quarters… 3-month SIBOR… has shot up and there is no reason to believe it will slow,” JPMorgan wrote in a March 16 sector report.

The increase in SIBOR may be a double-edged sword as rising rates could impact debt servicing ability and asset quality, leading to higher NPLs. Some banks may also face higher cost of funds, so those with larger current and savings account (CASA) deposits, amassed during the years of low interest rates, could have an advantage.

NPLs will show up, “but with a lag”, which can be from “a couple of quarters to a couple of years,” and “will be bank-specific in the beginning,” said JPMorgan in its report.

DBS’s NPLs eased to 0.9% in 4Q from 1.1% a year ago and was steady from the previous quarter, while those for OCBC slipped to 0.6% from 0.7% in both the year-ago quarter and 3Q 2014. UOB’s NPLs edged higher to 1.2% in 4Q versus 1.1% a year ago and were unchanged quarter-on-quarter.
 

Singapore Market Likely Rangebound Again On Tuesday


(RTTNews.com) – The Singapore stock market gave up less than a point, but that was enough to snap the modest two-day winning streak in which it had gained 6 points or 0.2 percent. The Straits Times Index remained just above the 3,450-point plateau, although the market may bounce higher again on Tuesday.

The global forecast for the Asian markets suggests mild upside, thanks to a solid rebound in the price of crude oil. The major European markets were closed for Easter Monday, while the U.S. bourses ticked higher – and the Asian markets are also expected to open in the green.

The STI finished barely lower on Monday as the financial, plantation and property sectors all finished mixed.

For the day, the index eased 0.84 points or 0.02 percent to finish at 3,452.91 after trading between 3,451.21 and 3,458.18.

Among the actives, City Developments added 0.49 percent, while Hongkong Land dropped 1.17 percent, Golden Agri-Resources jumped 1.16 percent, Genting Singapore fell 1.05 percent, United Overseas Bank collected 0.61 percent, DBS Group eased 0.10 percent, SIA dipped 0.33 percent and SingTel advanced 0.68 percent.

The lead from Wall Street is upbeat, thanks to a boost from the energy stocks following an increase in the price of crude oil.

The S&P 500 gained 13.66 points or 0.66 percent to close at 2,080.62, while the Dow Jones Industrial Average advanced 117.61 points or 0.66 percent to 17,880.85 and the NASDAQ gained 30.38 points, or 0.62 percent to 4,917.32.

The markets struggled early as traders reacted to last week’s disappointing jobs data. The U.S. markets were closed Friday for a holiday, but government employment figures for March came in below expectations.

However, U.S. crude oil surged to a one-month high on Monday as investors bet it could take several months for Iran to ramp up crude oil production for export following a deal with western powers over its nuclear program.

Traders shrugged off a disappointing report on the health of the country’s services sector as a report from the Institute for Supply Management showed a slowdown in the growth of the country’s non-manufacturing segment.

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Singapore stocks close 0.20 pct higher

SINGAPORE, April 2 (Xinhua) — Singapore stocks finished higher on Thursday, with the benchmark Straits Times Index (STI) up 6.73 points, or 0.20 percent, to close at 3,453.75.

A total of 1.39 billion shares changed hands with turnover of 925.5 million Singapore dollars (681.1 million U.S. dollars).

Gainers outnumbered decliners 225 to 188, while 521 others finished unchanged.

The STI index closed at 3,447.02 on Wednesday.

Daily Markets Briefing: STI closed flat

As a recap, the STI registered a flat close yesterday, after showing signs of initiating a bearish reversal at the 3460 key resistance the day before.

Technically, the daily MACD has also started to converge bearishly towards its signal line, this suggests that the downside momentum could be building up.

As such, we are likely to see the index sliding further in the direction of the 3400 immediate support today.
 

Consumer goods, healthcare plays the biggest gainers in March

Led by ThaiBev and IHH Healthcare.

A report by DBS stated that the FTSE ST Consumer Goods Index was the best performer in March, lifted by an 8% m-o-m gain in Thai Beverage shares.

The Healthcare sector also performed well last month, thanks to an 11% surge in IHH Healthcare shares.

“Our analyst likes ThaiBev for its entrenched position in Thailand, strong cashflow-generating capabilities, attractive valuations, and catalysts from value extraction with FNN and Frasers Centrepoint Limited. On outlook, we project IHH to continue to deliver stable growth, driven largely by its key markets, particularly Singapore and Malaysia,” stated DBS.

Here’s more from DBS:
The Straits Times Index ended the final week of CY1Q15 18pts higher, overcoming weakness on Wall Street. Our recent positive view on the Singapore market at 3380 and slightly below has been vindicated.

STI’s rise in the past two weeks has lifted valuation back above the 13.4x (-0.25SD) 12-mth forward PE currently at 3405 that we now see as the near-term support. It is heading towards the 13.76x (ave) 12- mth forward PE currently at 3500 that is viewed as the near-term resistance.
 

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Continued Consolidation Called For Singapore Market


(RTTNews.com) – The Singapore stock market on Tuesday wrote a finish to the five-day winning streak in which it had advanced almost 45 points or 1.3 percent. The Straits Times Index closed just below the 3,450-point plateau, and now the market may extend its losses on Wednesday.

The global forecast for the Asian markets is soft, due to profit taking and renewed concerns over the outlook for interest rates. The European and U.S. markets ended lower, and the Asian bourses are also tipped to open in the red.

The STI finished slightly lower on Tuesday following weakness from the financial shares, plantation stocks and industrials, while the properties came in mixed.

For the day, the index dipped 7.25 points or 0.21 percent to finish at 3,447.01 after trading between 3,442.44 and 3,469.02. Volume was 110.2 million shares worth 274.3 million Singapore dollars. There were 105 gainers and 36 decliners.

Among the actives, Keppel Corp shed 0.44 percent, while City Developments dropped 1.18 percent, CapitaLand tumbled 1.92 percent, Hongkong Land climbed 1.75 percent, Golden Agri-Resources plunged 2.30 percent, Noble Group fell 1.08 percent, United Overseas Bank lost 0.99 percent, Oversea-Chinese Banking Corporation gave away 0.75 percent, SembCorp dropped 1.86 percent and SingTel added 0.46 percent.

The lead from Wall Street is negative as stocks moved lower on Tuesday – partly offsetting the strong upward move in the previous session.

The Dow tumbled 200.19 points or 1.1 percent to 17,776.12, while the NASDAQ slid 46.56 points or 0.9 percent to 4,900.88 and the S&P 500 dropped 18.35 points or 0.9 percent to 2,067.89.

The weakness was partly due to profit taking following Monday’s rally, with stocks extending the volatility seen in recent weeks.

Renewed worries about the outlook for interest rates may also have weighed on the markets following remarks by Richmond Federal Reserve Bank President Jeffrey Lacker – who stated that a strong case can be made for an increase in interest rates relatively soon.

Traders also digested a mixed batch of economic data, including a report from MNI Indicators showing that Chicago business activity unexpectedly continued to contract in March.

Meanwhile, the Conference Board released a separate report showing an unexpected rebound in consumer confidence in March.

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Singapore equities could be on the rebound: Analysts

SINGAPORE: Analysts have said that Singapore equities could be on the rebound. This comes after a decent showing in the first quarter of 2015 – with the Straits Times Index (STI) managing to climb 2.4 per cent year-to-date. In the same period last year, the STI saw gains of 0.67 per cent.

Analysts said the interest in equities could be due to other asset classes being less attractive. And they remain optimistic that barring any major global downside risks, Singapore equities will continue to perform.

Singtel was one of the top performers for the quarter, with its share price jumping 12.3 per cent. It was followed closely behind by property developer Hongkong Land, with returns of 11.7 per cent.

Sector-wise, telecommunications and real estate investment trusts (REITs) continued to do well -even as commodity-related sectors, such as commodity suppliers and offshore and marine, underperformed.

Analysts said the first-quarter performance was better than expected, and one possible reason could be investors shifting their focus to equities from other asset classes.

Mr Liu Jinshu, lead analyst at Voyage Research, elaborated: “Investors right now are seeing the Singapore property sector as less attractive, so we may for instance see money flowing from the real-estate sector over to equities. If you were to look at real estate prices, I think right now, the interest in real estate would not be as strong as say a few years ago.”

UPWARD TREND EXPECTED TO CONTINUE IN Q2 

Going into the second quarter, analysts are optimistic that the upward trend will continue. Major events at home, such as the SEA Games, are expected to have positive spill-over effects – particularly in the transport, tourism and hospitality sectors. 

However, a major downside risk could be the impending US interest rate hike. Analysts said that if the roll-out is properly managed, the effect on equities could be minimised.

Said Mr Nicholas Teo, market analyst at CMC Markets: “The other driver is that global liquidity will still be fairly good, despite the potential US rate hike; I think that process will be managed, and with that management.

“I think equities will still be the asset class that will dominate this year. Singapore sits nicely in Asia and we will see a benefit of that fund flow coming through. So with that, Singapore would probably ride that wave.”

Across Southeast Asia, all key benchmarks closed in the black for the first quarter as a whole. Manila’s PSE was the top performer – with a gain of 9.8 per cent. Thailand was at the other end of the spectrum, with the SET pulling ahead by 0.55 per cent. 

Rally Likely To Continue For Singapore Stock Market


(RTTNews.com) – The Singapore stock market has finished higher now in five straight sessions, collecting almost 45 points or 1.3 percent in that span. The Straits Times Index settled just below the 3,455-point plateau, and now the market may extend its gains again on Tuesday.

The global forecast for the Asian markets is firm, thanks in part to renewed support from oil prices – while continued bargain hunting may remain on the docket following last week’s weakness. The European and U.S. markets ended higher, and the Asian bourses figure to open in similar fashion.

The STI finished slightly higher on Monday as gains from the properties were capped by weakness from the plantations and a mixed bag from the financial shares.

For the day, the index gained 4.16 points or 0.12 percent to finish at 3,454.26 after trading between 3,440.30 and 3,458.71. Volume was 1.62 billion shares worth 959 million Singapore dollars. There were 228 gainers and 188 decliners, with 515 stocks finishing unchanged.

Among the actives, Keppel Corp climbed 1.01 percent, while CapitaLand jumped 1.39 percent, DBS Group collected 0.30 percent, United Overseas Bank dipped 0.13 percent, Wilmar International shed 0.61 percent, Noble Group dropped 1.59 percent, SingTel fell 1.13 percent and Thai Beverage surged 3.36 percent.

The lead from Wall Street is broadly positive as stocks showed a strong move to the upside on Monday, following significant weakness last week.

The Dow soared 263.65 points or 1.5 percent to 17,976.31, while the NASDAQ jumped 56.22 points or 1.2 percent to 4,947.44 and the S&P 500 surged 25.22 points or 1.2 percent to 2,086.24.

The strength was partly due to bargain hunting following last week’s pullback, which dragged the Dow and the NASDAQ down to their lowest intraday levels in over a month.

Buying interest was also generated by comments from People’s Bank of China governor Zhou Xiaochuan that generated optimism about additional stimulus.

News on the merger-and-acquisition front also generated some positive sentiment, with Hyperion Therapeutics ( HPTX ) and Auspex Pharmaceuticals ( ASPX ) posting standout gains after agreeing to be acquired by Horizon Pharma ( HZNP ) and Teva (TEVA), respectively.

On the economic front, the National Association of Realtors said that pending home sales jumped to their highest level in twenty months in February. Also, the Commerce Department noted that personal income rose by slightly more than expected in February.

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SGX’s 20 largest stocks averaged 12.0% return over the past year

Check out the five strongest performers.

In line with the STI which has generated a 9.1% price gain over the period while maintaining a 3.2% dividend yield, Singapore’s 20 largest capitalised stocks that are actively traded have averaged a 12.0% return over the past 12 months.

According to SGX, the 20 largest stocks that are actively traded on SGX have a combined market cap of S$ 469.5 billion. This means they account for 45.4% of the total market capitialisation of all stocks listed on SGX. These 20 stocks include 17 STI stocks. All the stocks are in the STI except for IHH Healthcare Berhad, Dairy Farm International Holdings and Great Eastern Holdings.

Including both price appreciation and dividend distributions, Singapore’s 20 largest capitalised stocks that are actively traded have averaged a 12.0% return over the past twelve months. T

Among these 20 stocks, the five strongest performers year-to-date were IHH Healthcare Berhad, Singapore Telecommunications, Hongkong Land Holdings, CapitaLand and Thai Beverage Public Company. In the year thus far, only five stocks reported negative returns, while the remaining 15 stocks reported higher total returns, bringing the average total return year-to-date to 3.6%.

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