SeaPRwire

Markets on roller coaster amid fear, hope, greed

elean
5 minutes

SINGAPORE - The markets were on a roller coaster last week as the forces of fear, hope and greed collided. Fear of inflationary forces put downward pressure on stocks, while hope of more long-term upside was fanned by signs of a sequential economic recovery. Meanwhile, greed kept stocks grinding higher despite mixed signals from various data releases. A positive close on Friday (June 11) saw the New York mainboard's Dow Jones index cutting its loss to 276.79 points, or 0.8 per cent, for the week to end last Friday at 34,479.60 points. However, the broader S&P 500 index ended flattish with a 17.55 point, or 0.4 per cent, gain for the week at 4,247.44 points. The tech-heavy Nasdaq, which has been volatile in recent weeks, gained 254.93 points, or 1.8 per cent, for the week to end last Friday's session at 14,069.42 points, supported by the big techs and semiconductor stocks. Singapore's Straits Times Index (STI) ended at 3,157.97 points, up 5.93 points, or 0.2 per cent, for the week. With about a 40-point range between its high (3,188.00) and low (3,145.79) since the end of last month, this is a comparatively calm start to the month. The banks, which account for 40 per cent of the ind...

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US inflation data for May set to take centre stage this week

elean
4 minutes

SINGAPORE - Equity markets continued to grind northwards despite concerns about inflation and potential tightening of monetary policies by central banks. Indeed amid signs of supply side constraints which could put pressure on prices, one of the most closely watched numbers has been unemployment. Thus it was not surprising that the United States job figures for last month became the centrepiece of market attention last week. As it turned out, the job numbers came in below expectations despite being a significant improvement over April. Payrolls increased by 559,000 last month after a 278,000 gain in April. Economists were expecting a 675,000 rise last month. The numbers pleased the market. After falling sharply last Thursday, the Dow Jones rebounded last Friday, chalking up a 1 per cent weekly gain at 34,756.39. The S&P index edged 0.6 per cent higher for the week at 4,229.89, while the tech-heavy Nasdaq was up 0.5 per cent during a volatile week to close at 13,814.89 last Friday. However, the Straits Times index (STI) gave up 0.9 per cent to close at 3,151.04 as investors sold down banks and blue chips. DBS, OCBC and UOB declined by an average of 1.4 per cent last week. Still, the...

SeaPRwire

HDB resale prices rise for 11th straight month as volume dips on tighter Covid-19 rules

aseanpr
3 minutes

SINGAPORE - Tightened Covid-19 measures had some cooling effect on the Housing Board resale market last month as fewer property viewings were conducted in person, resulting in fewer flats changing hands. However, HDB resale prices continued to climb for the 11th straight month, rising 1.2 per cent last month compared with April, according to flash data from real estate portal SRX released on Thursday (June 3). A total of 1,966 resale flats were sold last month, a 16 per cent fall from April. Ms Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie, noted that the drop was not as drastic as during the circuit breaker period in April last year, when even tighter measures were introduced. Then, the HDB resale volume dropped by about 78.5 per cent, from 1,969 units in March to 423 units in the following month, she said. Resale volume for HDB flats in May was 440.1 per cent higher than the same month last year. Under the current phase two (heightened alert) measures, expected to be in place till June 13, households can receive only two unique visitors each day. PropNex head of research and content Wong Siew Ying said that this has affected property viewings t...

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Applications for temporary Covid-19 recovery grant to begin on June 3

aseanpr
3 minutes

SINGAPORE - Applications for the Covid-19 Recovery Grant (Temporary) (CRG-T) will begin on Thursday (June 3) and end a month later on July 2. The grant, announced last Friday, is meant to assist lower- to middle-income workers who have been financially impacted by the latest Covid-19 restrictions. Eligible workers who have been placed on involuntary no-pay leave for at least a month from May 16 to June 30, or who have suffered an income loss of at least 50 per cent for at least a month over the same period, may apply for the CRG-T. Those eligible will receive a one-off payout of up to $700. CRG-T is a supplement to the existing Covid-19 Recovery Grant (CRG), which was launched on Jan 18 to support lower- to middle-income workers and self-employed people affected by the coronavirus pandemic, Finance Minister Lawrence Wong said at a press conference last Friday. In a statement on Monday, the Ministry of Social and Family Development (MSF) said the eligibility criteria for the CRG-T are similar to those of the CRG, with two key differences. First, CRG-T applicants must have income loss of at least 50 per cent for one month or be placed on involuntary no-pay leave for at least a month ...

SeaPRwire

Tussle between growth optimism, inflation fears

elean
4 minutes

The market is currently caught between fear over inflation and optimism about the upcoming economic recovery. After see-sawing for much of the week, Wall Street indexes ended last Friday's session on a positive note after the latest United States employment data exceeded expectations, with first-time jobless claims falling to a new pandemic low of 406,000. The Dow Jones index ended the week up 1 per cent at 34,529.45, while the broader S&P 500 index edged up 1.2 per cent to 4,204.11 and the tech-heavy Nasdaq gained 2 per cent to 13,748.74. Singapore's Straits Times Index added 1.9 per cent last week, finishing at 3,178.55 points. Its total returns so far this year is 13.5 per cent. At Friday's close, it had rallied more than 30 per cent from last October's lows, and is just 15 per cent off its 3,600-point high in May 2018. Banks continued to provide the bulk of support, with DBS, UOB and OCBC recording total returns of some 22.3 per cent this year as they booked more than $1.8 billion in net institutional inflows. According to Bloomberg data, analysts' consensus 12-month target price for OCBC and UOB shares has been raised to $13.85 and $29.78 respectively. Among the stocks that ha...

SeaPRwire

Man who was part of unlawful gathering at actor Terence Cao’s home fined $3,000

aseanpr
3 minutes

SINGAPORE - Veteran actor Terence Cao Guohui, who had initially organised a gathering at his home for himself and five others last October, later found more guests at his doorstep after one of his friends invited them to the party. The friend, Lance Lim Chee Keong, 50, had invited four more people and the total number of guests later grew to 12 as the celebrations progressed amid the Covid-19 outbreak. On Tuesday (May 18), Lim pleaded guilty to an offence under the Covid-19 (Temporary Measures) Act and was fined $3,000. The Singaporean had breached phase two regulations that restricted social gatherings to no more than five people. Meanwhile, Cao, 53, told the court last month that he also intends to plead guilty to his charge. His case is still pending. The court heard that Cao had organised the event at his condominium apartment in Daisy Road off Braddell Road last October to celebrate his own birthday as well as that of two other artistes, Shane Pow Xun Ping, 30, and Jeffrey Xu Mingjie, 32. The event had received flak on social media after pictures of the unmasked group went viral online. Twelve guests were in the unit between 9pm on Oct 2 last year and 1am the following day. Am...

SeaPRwire

Strong earnings poised to lift shares higher

elean
4 minutes

SINGAPORE - As if low interest rates and massive liquidity injections were not enough, equity markets look set to be further fuelled by blowout corporate first-quarter results. On Wall Street, key market indexes powered to new highs in the past week as the first set of results from the likes of JP Morgan, Bank of America, Wells Fargo, Citi and Goldman Sachs came forth. Technology stocks, which had faced some headwinds in recent months, seemed revitalised as the 10-year Treasury yield fell below 1.6 per cent during the week. The Dow Jones ended the week with a gain of 400.07 points to close at 34,200.67, while the tech-heavy Nasdaq closed at 14,052.34 for a weekly addition of 152.16 points. Meanwhile, the broader S&P Index ended the week with a 56.67-point weekly gain at 4,185.47. The S&P has risen by more than 11 per cent since the beginning of this year, indicating strong appetite for equities. Besides strong earnings, especially from banks, market sentiment was also lifted by data showing a 9.8 per cent surge in United States consumer spending last month and unemployment claims dipping to their lowest level since March last year. US factory output rose last month, shaking off its...

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MOM to carry out 300 more checks in high-risk workplaces after 7 deaths from accidents in Feb

aseanpr
3 minutes

SINGAPORE - Following a spate of workplace accidents this month which saw seven people killed, the Ministry of Manpower (MOM) is adding 300 inspections in high-risk industries. In a Facebook post on Wednesday (Feb 24), MOM said the inspections will continue until mid-March, adding that there will be "a greater focus on tackling the common infringements found of work-at-heights risk and safe use of machinery" in the construction, manufacturing and marine sectors. The announcement came on the same day as an explosion at an industrial site in Tuas, which saw 10 workers taken to hospital for burn injuries. Of the seven deaths from workplace accidents this month, three fell from height, three were caught between objects and one was involved in a work-related traffic accident. MOM had, between mid-December last year and this month, launched Operation Robin with 400 inspections at various sites. The team uncovered 486 contraventions and issued seven stop-work orders (SWO). In one of these inspections, MOM issued a SWO to Kian Hua Hardware where contraventions, including ignition keys being left in forklifts and unsafe electrical installations, were uncovered. Another SWO was issued to was...

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China exports beat forecasts with 18.1% growth in December

elean
3 minutes

BEIJING • Chinese exports grew by more than expected last month, Customs data showed yesterday, as coronavirus disruptions around the world fuelled demand for Chinese goods even as a stronger renminbi made exports more expensive for overseas buyers. A robust domestic recovery also spurred Chinese appetite for foreign products last month, with import growth quickening from the month prior and beating expectations in a Reuters poll. Exports rose 18.1 per cent last month from a year earlier, slowing from a 21.1 per cent jump in November but beating expectations for a 15 per cent rise. Imports increased 6.5 per cent year on year last month, topping a 5 per cent forecast and picking up pace from November's 4.5 per cent growth. Buoyant exports helped drive an impressive rebound in China's manufacturing sector last year, as the pandemic wreaked havoc abroad. China is expected to be the only major economy to have seen positive growth last year. Exports grew 3.6 per cent over the full year and imports fell 1.1 per cent. While the pandemic will bring challenges, a reviving global economy and a steady recovery in China's domestic economy provide a foundation for China to maintain trade growth...

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Opec+ warns of risk to oil recovery from resurgent Covid-19 pandemic

elean
4 minutes

LONDON (BLOOMBERG) - Opec warned of risks to the oil market from the resurgent pandemic, a day before the group and its allies meet to consider another increase in production. "The outlook for the first half of 2021 is very mixed," Opec Secretary-General Mohammad Barkindo said at a preparatory meeting on Sunday (Jan 3). "There are still many downside risks to juggle." The alliance of producers led by Saudi Arabia and Russia will decide on Monday whether it can continue to restore crude supplies without capsizing the price recovery they spent most of 2020 working to achieve. Moscow believes that the group - which slashed output last year - can revive another 500,000 barrels a day of idle capacity in February, on top of an increase scheduled for this month. Riyadh, which has favored greater caution, is keeping its own views under wraps. But while the Sunday meeting hasn't addressed future output policy so far in any detail, a Saudi official there noted the fragility of the recovery, according to delegates who declined to be named. "We think the producer group will opt to forgo any further production increases for February with Covid-19 cases continuing to climb and the slower than ex...

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Opec+ meeting to decide output level, maintain market influence

elean
3 minutes

LONDON • Members of the Organisation of the Petroleum Exporting Countries (Opec) and their partners will hold a video conference tomorrow to decide on production levels for next month, hoping to turn the corner on a difficult year. The Opec+ ministerial meeting comes after oil consumption tanked last year due to the Covid-19 pandemic and a price war between Saudi Arabia and Russia. Despite a pick up in prices towards the end of the year, the market levels for oil remain uncertain. After their last summit, from Nov 30 to Dec 3, the Opec+ members agreed to increase production by half a million barrels per day this month. At the meeting, the 13 members of the Opec cartel, led by Saudi Arabia, and their six allies, led by Russia, also agreed to meet at the beginning of each month in order to decide on any adjustments to production volumes for the following month. Russia and Saudi Arabia are, respectively, the second and third biggest oil producers in the world after the United States. The decision illustrates Opec's desire to maintain a strong influence on the oil market, and the gravity of the situation for crude producers last year. Before the pandemic, Opec members were content with...

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Jobless claims dip in US, but recovery yet to take hold

elean
4 minutes

WASHINGTON • Fewer Americans sought unemployment benefits last week, but the modest drop did little to dispel concerns that the US job market and wider economy face an arduous recovery from the devastation inflicted by the coronavirus pandemic last year. The final major economic data point for last year, which saw a recession of historic magnitude erupt out of nowhere, stood as a fitting reminder for both how far the recovery has progressed and how much more it has to go. While new claims for benefits reported by the US Labour Department on Thursday dropped for the second week in a row to a seasonally adjusted 787,000 in the week ended Dec 26, from 806,000 a week before, it left them at roughly the level they were three months ago and with little indication they would show material improvement any time soon. The arrival of effective Covid-19 vaccines and additional federal pandemic aid have set the stage for a brighter 2021. But economists agree that the still-raging epidemic and the fractured government response to it mean more hard months ahead before improvement takes hold. "While prospects for the economy later in 2021 are upbeat, the economy and labour market will have to navi...

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Sale of new, resale private homes on the rise

elean
1 minute

The private home market resumed its upward march in November, with sales up nearly 19 per cent compared with the previous month following a surge in the number of new homes launched. Last month's uptick in sales to 767 units from 645 in October came following a temporary pullback in October's sales after the Urban Redevelopment Authority clamped down on the re-issue of options to purchase. The market's resilience could well spill over into this month, analysts say. The private resale market also continued to recover, with flash figures from real estate portal SRX Property showing that resale prices and transaction volumes increased last month. The highest transacted price last month was for a resale luxury apartment at Nassim Jade, which sold for $11.7 million.

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Dow wraps best month since 1987 on Covid-19 vaccine hopes

elean
2 minutes

NEW YORK (AFP) - The Dow concluded its best month in more than three decades on Monday (Nov 30), with gains propelled by expectations for a 2021 recovery based on coronavirus vaccine progress. The blue-chip index suffered a 0.9 per cent drop in the session to finish at 29,638.64, but that's nearly a 12 per cent gain for all of November, making it the best month since January 1987. The broad-based S&P 500 dropped 0.5 per cent to 3,621.63, while the tech-rich Nasdaq Composite Index slipped 0.1 per cent to 12,198.74. The November gains followed a bruising October amid worries over rising coronavirus cases and fears of a contested US presidential election. But stocks have gained ground since the Nov 3 US presidential election as investors now expect an uneventful transfer of power at the White House, even though President Donald Trump has not conceded the race to former vice-president Joe Biden. Mr Trump has filed dozens of lawsuits but Mr Biden's victory has been confirmed after key states certified the results. Besides easing fears over political uncertainty, markets have rallied in the wake of a series of upbeat announcements on coronavirus vaccines, including one on Monday from Mod...

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Singapore non-oil exports post surprise 3.1% drop in October

elean
2 minutes

SINGAPORE - Singapore's non-oil domestic exports (Nodx) shrank unexpectedly in October, snapping four straight months of growth, due to fewer shipments of non-monetary gold and electronics such as integrated circuits. Nodx fell 3.1 per cent, after expanding a revised 5.8 per cent in September, according to data from Enterprise Singapore (ESG) on Tuesday (Nov 17). Shipments also missed the 5.1 per cent growth forecast by analysts in a Bloomberg poll. Month on month and seasonally adjusted, Nodx in October fell 5.3 per cent, less than the previous month's drop of 11.4 per cent. Electronics shipments dipped 0.4 per cent, after rising 21.4 per cent the previous month. Integrated circuits, other computer peripherals and PC parts fell by 12.8 per cent, 6.9 per cent and 1 per cent respectively, contributing the most to the decline in electronic Nodx. Shipments of non-electronics also had a poorer performance, shrinking 3.9 per cent in October after a 1.7 per cent expansion the previous month. Exports of non-monetary gold plunged 61 per cent, while petrochemicals and miscellaneous manufactured articles fell 15.3 per cent and 37.3 per cent respectively, contributing the most to the decline ...