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Straits Times 3,212.10 -1.55 -0.05%
Hang Seng 29,113.36 +41.80 +0.14%
Dow Jones 25,502.32 -460.19 -1.77%
Shanghai Composite 3,104.15 +2.69 +0.09%
Weak Outlook Continues To Be Tipping Point For Market Participants
Singapore Market Commentary | 25 October 2012
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In the US, results from DuPont, 3M and Alfa Laval have been disappointing, and this trend is quite prevalent. As a result of dismal earnings performance by several blue chips, the Dow Jones Industrial Average (DJIA) took its biggest hit since 21 June, and closed the trading day at 13,012.53 (down 243 points) on 23 October.

In a poll done by Bloomberg, among the 145 companies in the Standard & Poor’s 500 (S&P 500) that have released their results, a shocking 60% missed analysts’ estimates. On the technical front, the S&P 500 has broken a triple top (mini) neckline and is trading below its 50 day moving average, conveying high possibilities of breaking the 1,400 support level, which could then see it fall to 1,360.

Back home in Singapore, strong performance was seen by Frasers Centrepoint Trust, where it reflected a record high 4Q12 distribution per unit of $0.0271 (+15.3%). The impressive performance was largely driven by its Causeway Point mall following the substantial completion of the mall’s refurbishment and full-year contribution from Bedok Point. Positive rental reversion of 8.9% on leases renewed was also achieved during the quarter.

On the other hand, as a result of weaker market conditions, Dynasty REIT has on 25 October cancel its $956 million IPO. Several of the recent IPOs seen like Religare Health Trust and Astro Malaysia Holdings have taken a hit since they started trading.

Depending on the tone of market weakness, the Straits Times Index (STI) could be affected and fall below its psychological support of 3,000, if the 3,050 support does not hold. On 25 October, the STI closed at 3,057.51.

Frasers Centrepoint Trust  2.330 +0.02 +0.87%   
Business: Co is a developer-sponsored retail real estate investment trust.

Insight: Feb-19, 1Q19 NPI inched up 2.5% to $35.4m, as gros... Read More


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