By the midday break, the Straits Times Index (STI) <.FTSTI> was up 3.26 points at 3,224.04. The total value of shares traded in the morning session was $838.8 million, up from $815.1 million on Wednesday.
Singapore shares may open slightly lower on Tuesday tracking losses on Wall Street overnight, as investors turn more cautious amid fears that Portugal will be the next euro zone member to need a bailout. Singapore’s benchmark Straits Times Index <.FTSTI> was down 0.98% on Monday to 3,229.27 points.
Here are some stocks and factors to watch:
The STI is down 0.6% at 3156.88, weakening further in afternoon trade as euro-zone debt concerns resurface, hurting risk appetite.
There are 2 fallers for every gainer in broad market.
While Singapore’s market has been weak in recent sessions, most analysts expect activity and prices to pick up again after the holiday period.
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Wilmar (F34.SG) off 0.2% at $6.04 in light trade, underperforming most other Singapore blue chips (STI +0.6%), as China’s latest price-control measures fuel concerns.
Plantation group’s Yihai Kerry unit, one of major edible oil producers, informed by Beijing to hold off raising selling prices over next 4 months in bid to rein in food inflation, according to report in 21st Century Business Herald.
Amtek Engineering (M1P.SG) tanks on debut, last down 20.8% at $1.03 vs $1.30 IPO price, $0.985 in early trade (down 24.2%), making it one of worst performers for new listings this year.
Singapore shares ended lower in thin volume today as investors remained concerned about the prospects for economic growth in China following last week’s moves there to tighten monetary policy.
The benchmark Straits Times Index finished the day 6.45 points, or 0.2%, lower at 3,190.92 with a total of 1.17 billion shares changing hands compared with 1.25 billion traded Friday.
In the broader market losers dwarfed gainers 283 to 169.
Mixed session on Wall Street may prompt investors to take some profits off Singapore shares in early trade, says Dow Jones.
Ahead of Singapore’s earnings season starting next week, investors expected to take cues from economic data, with surprise fall in US September private-sector employment potentially keeping sentiment guarded.
Singapore industrial property plays such as Cache Logistics Trust (K2LU.SG), Mapletree Logistics Trust (M44U.SG), Ascendas REIT (A17U.SG), Cambridge Industrial Trust (J91U.SG) may fall as Global Logistic Properties’ mega IPO could drain liquidity from these stocks, says Dow Jones.
Unit of Government of Singapore Investment Corp. offering 1.17 billion shares at $1.78-$1.96 each, with another 588.98 million shares to be sold to cornerstone investors. Based on mid-point of indicative pricing, company could raise at least $3.1 billion in net proceeds.
Golden Agri-Resources (E5H.SG) last off 0.9% at $0.575, underperforming other Singapore-listed plantation stocks, as potential risk of more customers ending business with unit Sinar Mas (SMAR.JK) weighs, says Dow Jones.
Concerns stoked by recent comments from global industry association Roundtable on Sustainable Palm Oil that Sinar Mas not complying with its code of conduct.
Companies like Burger King, Nestle, Unilever have already stopped doing business with Sinar Mas following Greenpeace’s allegations of destructive planting practices.
OCBC (O39.SG) turns lower after 2Q10 results–released during lunch break–miss expectations, according to Dow Jones.
Shares off 0.2% at $9.01 vs +0.7% at $9.09 midday. “Overall, the results were mixed and (the) stock should be weak in near term,” says JPMorgan, which has Overweight call with $11.00 target, “but looking past volatilities in insurance income, a combination of strong loan growth, steady performance on credit costs and progress on Bank of Singapore should lead to outperformance of the stock in six to nine months.”
SingTel (Z74.SG) is up 0.3% at $2.98 in light trade vs morning high of $3.00 (1.0%). Interest in near term may be limited as investors digest news of associate Bharti’s (532454.BY) recent hefty bids in India for wireless broadband spectrum, which raises concerns of balance sheet strain at time when Bharti has just completed massive acquisition of Zain Africa, says Dow Jones. Immediate resistance at current June high of $3.01.
Yangzijiang (BS6.SG) down 1.6% at $1.25, still consolidating after coming off from more than 2-year high of $1.57 in late April, according to Dow Jones.
Prudential (2378.HK) is buying American International Group Inc’s (AIG.N) Asian life insurance business AIA for US$35.5 billion ($50 billion), and aims to raise US$21 billion from the world’s biggest acquisition-funding rights offering.
SingTel (Z74.SG) off 2.4% at $2.86, extending steady decline of past weeks, as broad market weakness, rising competitive pressures continue to weigh, according to Dow Jones.
As developer derives bulk of NAV from Singapore market, investors naturally concerned home sales may slow if government continues to intervene, especially in wake of recent official data showing spike in new home sales by developers in Singapore last month vs March.
Li Heng Chemical Fibre (E9A.SG) off 5.6% at 25.5 cents on prospect of higher raw material costs, ex-dividend effect, according to Dow Jones.
SingTel (Z74.SG) is one of the weaker performers among blue chips, flat at $3.01 vs $3.03 earlier, as investors wary of telco’s March-quarter results, due May 13, after Indian associate Bharti (532454.BY) turns in 8.2% on-year fall in fiscal 4Q10 net profit to INR20.55 billion ($632 million) due to strong competition. Results lower than INR20.63 billion tipped in Dow Jones poll.
With three-month Sibor at multi-year low, margins for Singapore banks are expected to come under pressure, though any pullback in share prices would be chance to buy, says JPMorgan, according to a Dow Jones report.
Prospect of more tightening measures from Beijing following stronger-than-expected China economic data prompts investors to lighten positions on Singapore shares after early gains driven by Wall Street’s modest overnight advance, reported Dow Jones Newswires.
The STI off 0.1% at 2,858.58 midday vs high of 2,875.21 (+0.5%); likely to hold above this week’s low of 2,820, with Jan 21 high of 2,890 expected to offer resistance. Market breadth tad negative vs four gainers for each decliner in early trade.
