MARKET UPDATES :
- Singapore’s economy watchers have tempered their expectations for GDP growth in 2014 from a quarter ago and are not expecting much improvement next year. Their inflation expectations too, have been adjusted lower.The Monetary Authority of Singapore’s (MAS) latest quarterly poll of professional forecasters, sent out in late November, found that their median growth forecast for 2014 has fallen to 3 per cent, from 3.3 per cent in the September survey. That is in line with the government’s forecast of “around 3 per cent” growth for the year.
- DBS has cut its 2015 GDP growth forecast to 3.2 per cent from 3.6 per cent, amid concerns about a volatile year ahead – with possibly divergent monetary policies across key central banks worldwide.This would have a significant impact on financial markets, said DBS economist Irvin Seah in a research report. “Interest rate expectations will fluctuate and currencies will be volatile. Perhaps the only upside for the global economy next year is the lower oil prices.
- Non-oil domestic exports rose 1.6 per cent in November from a year ago, reversing the 1.5 per cent dip in October, the latest trade figures released by International Enterprise Singapore this morning show. Month on month, the NODX extended October’s 1.1 per cent increase with a seasonally-adjusted 2.9 per cent jump to S$14.2 billion, according to the trade promotion agency’s figures. The electronics NODX continued to go downhill in November, posting a sharper 10.2 per cent drop on-year. The NODX fell 3.6 per cent in October.
- Consumer confidence in Singapore has increased in December even though it is still nothing to cheer about.According to the ANZ-Roy Morgan, Singapore consumer confidence has risen slightly by 0.9 points to 121.8 in December, and is now just above the 2014 average of 121.1 points. “The Singaporean consumer has found a slight spark to end 2014 on a slightly more optimistic tone, but the granularity of our survey data hardly suggests a rebound in consumer confidence is in the offering.
- Oil suffered fresh losses in Asia on Wednesday, sinking to new multi-year lows as dealers watch Russia’s ruble crisis and await the latest US crude supply report, analysts said. US benchmark West Texas Intermediate for January delivery sank US$1.16 in afternoon trade to US$54.77 while Brent crude for February fell 71 cents to US$59.30 on the contract’s first day of trading.
- CITY Developments Limited (CDL) has come up with a novel way of monetising its Sentosa Cove assets in a soft property market, even as it anticipates more overseas acquisitions over the next few years.The Singapore-based developer cobbled together a club deal with US investment giant Blackstone and Malaysia’s CIMB Bank, which along with senior bank loans, amount to S$1.5 billion.
STOCK RECOMMENDATION :
- SELL SMRT CORP BELOW 1.550 TARGET 1.500 1.430 SL 1.600