- THE possibility that US interest rates may be raised sooner rather than later and the possible entry of a fourth telco weighed on sentiment this week, dragging the Straits Times Index (STI) 54 points or 1.9 per cent down to 2,803.92.
- These fears arose after comments last week by US Federal Reserve chair Janet Yellen at Jackson Hole, Wyomming and have kept a lid on Wall Street stocks and bonds.
- Here, Singtel was the index’s main loser following developments that have raised the likelihood of a fourth telco entering the segment. On Friday, the stock plunged S$0.10 to S$3.87 on volume of 55.4 million, the largest contributor to the STI’s 12.55 points loss that day. For the week, Singtel lost S$0.35 or 8.3 per cent.
Daily Archives: September 2, 2016
MARKET UPDATES :
- The Straits Times Index (STI) ended 2.97 points or 0.11% lower to 2817.62, taking the year-to-date performance to –
- The top active stocks today were Singtel, which declined 1.24%, DBS, which gained 0.27%, Ascendas REIT, which
closed unchanged, UOB, which declined 0.06% and OCBC Bank, with a 0.35% fall.
- The FTSE ST Mid Cap Index declined 0.04%, while the FTSE ST Small Cap Index declined 0.67%.
- The outperforming sectors today were represented by the FTSE ST Real Estate Holding and Development Index, which
rose 0.64%. The two biggest stocks of the Index – Hongkong Land Holdings and Global Logistic Properties ended 0.77% higher and 0.55% higher respectively.
- The underperforming sector was the FTSE ST Technology Index, which slipped 3.12%. Silverlake Axis shares declined 2.99% and CSE Global declined 2.30%.
- The three most active Exchange Traded Funds (ETFs) by value today were:
DBXT MSCI Indonesia ETF (-1.32%) ,STI ETF (unchanged) ,SPDR Gold Shares ETF (-0.57%)
- The three most active Real Estate Investment Trusts (REITs) by value were:
Ascendas REIT (unchanged) ,CapitaLand Mall Trust (unchanged) ,CapitaLand Commercial Trust (+0.97%)
- The most active index warrants by value today were:
HSI23800UBeCW161229 (+13.91%) ,HSI23000MBeCW160929 (+22.83%) ,HSI22800VTeCW160929 (+15.04%)
- The most active stock warrants by value today were:
DBS MB eCW170201 (+0.93%) ,DBS MB ePW170201 (-1.89%) ,DBS VT eCW161212 (+1.79%).
STOCK RECOMMENDATION :
- BUY SILVERLAKE AXIS ABOVE 0.670 TGT 0.700 0.720 SL 0.640.
INTERNATIONAL CURRENCY BUZZ
- Forex – GBP/USD climbs near 1-month highs on strong U.K. data.
- Forex – Aussie, kiwi edge higher vs. greenback on China PMI.
- Forex – Aussie up on China PMI manufacturing surveys that show expansion.
The EUR/USD continued to test lows on Wednesday afternoon, with the Euro exchange rates weakened by the morning’s Eurozone data and the US Dollar strengthened in the afternoon by US data.Mortgage applications improved from -2.1% to 2.8% in MBA’s August 26th report, and ADP’s August employment change score was a higher-than-expected 177k. However, the ‘Greenback’ was held back slightly by news that Chicago’s manufacturing PMI score had dropped from 55.8 to 51.5 in August.Confidence in the single currency deteriorated in spite of the German labour market continuing to tighten, with the Euro to Dollar exchange rate prompted to return to a downtrend.
The pound climbed against the U.S. dollar on Thursday and approached a one-month peak after the release of upbeat U.K. manufacturing activity data added to optimism over the strength of the economy post-Brexit.GBP/USD hit 1.3251 during European morning trade,the pair’s highest since August 26; the pair subsequently consolidated at 1.3242, advancing 0.78%.Cable was likely to find support at 1.3063, Wednesday’s low and resistance at 1.3349, the high if August 4.The pound strengthened after data showed that U.K. manufacturing activity moved back into expansionary territory in August from what had been its worst level since early 2013.
- BUY EUR/USD ABOVE 1.1170 TGT 1.1190 1.1220 SL 1.1150.
- SELL EUR/USD BELOW 1.1120 TGT 1.1100 1.1070 SL 1.1150.
INTERNATIONAL COMMODITY NEWS
- Oil prices steadied on Thursday after Saudi Arabia said OPEC was moving toward a common position on oil production
that some investors think could support prices.Brent crude futures for November were down 5 cents at $46.84 a barrel
by 1055 GMT after settling $1.84 lower at Wednesday’s close.U.S. crude futures were unchanged at $44.70 a barrel,
after falling $1.65 in the previous session.
- Gold prices steadied above the prior session’s two-month low during European hours on Thursday, as investors looked
ahead to data on U.S. nonfarm payrolls on Friday to give the market direction.The consensus forecast is that the data
will show jobs growth of 180,000 in August, following an increase of 255,000 in the preceding month.
- Nickel futures were trading higher during the evening trade in the domestic market on Thursday as speculators widened their bets on uptick in demand from alloy-makers at the domestic spot market and a firming trend overseas.Further fresh positions created by traders led by pick-up in demand from alloy-makers at the spot market and a better trend in metals at the LME after China’s official factory gauge unexpectedly rose last month to the highest level in almost 2 years signaling an improved demand outlook in the world’s top metal user supported the uptrend in nickel prices at futures trade.
- The party looked to be waning for some popular investments in the latest week, with investors trimming exposure to U.S.-based funds invested in developing-market bonds, utilities stocks and gold, Lipper data showed on Thursday.Investors’ repositioning in the week through Aug. 31 came as remarks by some monetary policymakers seemed to suggest a U.S. interest rate hike might soon be in the cards.
- It’s been two years since India emerged as the world’s fastest-growing major economy, but the rapid expansion has done little to improve the lot of Ashok Kumar.Parked up and sitting on the kerb, the 25-year-old truck driver is going nowhere fast. He is the sole breadwinner for the 13 people in his extended family and his monthly salary is stuck at $150.
- Even if a report due Friday shows U.S. companies kept up their rapid pace of hiring in August, there is still enough resis-
tance among policymakers at the Federal Reserve to delay an interest-rate hike at the bank’s September meeting.Reuters polling forecasts that 180,000 jobs were added last month, well above the 100,000 Fed Chair Janet Yellen says is needed to absorb newcomers to the labor market. At that rate, 2016 would be on pace for more than 2 million new jobs.
TRADING STRATEGY :
- BUY GOLD ABOVE 1310 TARGET 1315 1321 SL BELOW 1305.
- SELL GOLD BELOW 1302 TARGET 1297 1291 SL ABOVE 1307.
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