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STI Tumbles At The Start Of The Horse Year
Singapore Market Commentary | 07 February 2014
Related stocks:
C31
S58
By: Shane Goh
Articles (99) Profile

The Fed ended its latest FOMC meeting by continuing its gradual tapering path of its unprecedented quantitative easing programme, reducing its bond buying activities to US$65b per month.

Staying in the West, Markit’s final Eurozone Manufacturing Purchasing Managers’ Index rose to 54.0 in Jan-14, surpassing an earlier flash reading of 53.9 and Dec’s 52.7. This is the highest reading since May-11. The perceived strengthened developed economies have ignited a massive withdrawal of global funds’ capital from emerging market stocks.

On top of it, China’s 7.7% growth in gross domestic product in 2013, its worst performance since 1999, further compounded the pessimistic view on developing nations. The effect was felt in the stock markets as the Nikkei 225 Index, the darling among global indices last year, shed 8.1% in the 3 weeks ended 7 Feb.

Over the same period, the local Straits Index Index experienced a similar, albeit smaller, fall of 4.3%. On 3 Feb, the index closed below the psychological 3,000-points support for the first time since 26 Nov-12. On a company level, the top losers included household brand, Super Group. The market could be erring on the side of caution leading up to its full year results after the firm announced a disappointing 3Q13 performance.

In the midst of sell-offs, a silver lining was offered from the surprise expansion in Singapore’s manufacturing sector as Jan’s purchasing managers’ index came in at 50.5 points, exceeding Dec’s readings of 49.7 points. Over the next 2 weeks in this earnings-reporting season, firms such as CapitaLand and SATS will be releasing their financial performances.

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.

CapitaLand  3.280 +0.04 +1.23%   
Business: Co develops, owns, and manages real estate properties. [FY18 Geographical] China (41.2%), S'pore (38.5%), Europe & others (18.6%), Vietnam & Others (1.7%).

Insight: Apr-19, 1Q19 revenue fell 23.8% while net profit d... Read More
SATS  5.070 +0.04 +0.80%   
Business: Asia's leading provider of gateway services and food solutions. [FY19 Turnover] Food solutions (54.1%), gateway svcs (45.8%), others (0.1%).

Insight: May-19, FY19 revenue rose 6% to $1.8b driven by hi... Read More


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