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DJIA Touches New High As US Budget Deficit Hits 5-Year Low
Singapore Market Commentary | 08 November 2013
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By: Shane Goh
Articles (99) Profile

For the first time in five years, the US government posted a budget deficit below US$1t at US$680.3b in 2013, down from US$1.1t a year ago. Despite the budget deficit reduction, the Oct FOMC meeting went by without much fanfare as it concluded the way the market had expected – no tapering. The recent US government shutdown delayed the release of data that the Federal Reserve required to evaluate the economy. The euphoria was felt in the market as Dow Jones hit a record high while S&P 500 threatened to breach its previous ceiling.

Moving east, PMI for China’s non-manufacturing sector grew at its quickest pace in 13 months in Oct to 56.3, up from Sep’s 55.4. The service industry is an increasingly important factor in the country’s economy as the government attempts to steer away from investment and exports as the primary drivers of expansion.

Back home, Singapore’s latest manufacturing PMI rose to 51.2 in Oct, from 50.5 in Sep, suggesting a stronger 4Q13 growth. The result, underpinned by expansion in new orders, new export orders and higher output, strengthens the surprise surge in Sep’s factory output.

However, the spotlight on penny stocks has not dimmed as the carnage claimed its latest victims – Elite KSB Holdings and Sky One Holdings. Elite, a cash company with considerations worth $0.084 per share, was trading at $0.26 apiece prior to the plunge. Sky One, on the other hand, fell without any explanation, apart from the negative view the market has taken to penny stocks since the flash crash of Blumont, Asiasons and LionGold in Oct.

The gloomy outlook on penny stocks was felt by the Straits Times Index as it closed marginally unchanged at 3,177.25 despite all three local banks, boosted by loans growth, outperforming estimates.

Currently pursuing his Chartered Financial Analyst qualification, Shane provides coverage on the property, consumer and environmental sectors at Shares Investment.

Please click here for more information about this author.

Resources Prima Group  -- -- --   
Business: A mine owner and primarily engages in the business of coal exploration and coal mining in Indonesia.

Insight: May-19, 1Q19 revenue fell 83.7% to US$51,000 as EI... Read More
Blumont Group  -- -- --   
Business: Co provides contract sterilization and polymerization services. [FY18 Turnover] Sterilisation (99.3%), property (0.7%).

Insight: Feb-19, FY18 revenue increased 6%. Total expenses ... Read More
Attilan Group  -- -- --   
Business: Co engages in alternative asset investment and management activities. [FY17 Turnover] Investment management (65.7%), pre-school (20.6%), media sales (11.7%).

Insight: Aug-18, 2Q18 revenue increased slightly by 4% as C... Read More
LionGold Corp  0.001 -- --   
Business: Co has interests in gold mining and exploration companies in Australia and Ghana.

Insight: May-19, FY19 revenue rose 18.6% due to increased t... Read More


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