SG Morning Highlights: More potential downside ahead for STI due to inflationary concerns
Good morning mooers! Here are things you need to know about today's Singapore:
●Singapore shares opened higher on Monday; STI up 0.40%
●More potential downside ahead for STI due to inflationary concerns
●Stocks & REITs to watch: SATS, iFast, Pan Hong, Sinjia Land
●Latest share buy back transactions
-moomoo News SG
Market Trend
Singapore shares opened higher on Monday. The FTSE Singapore Sea Index (.STI.SG) $ rose 0.40 per cent to 3,194.06 as at 9.09 am.
Advancers / Decliners is 69 to 50, with 78.7 million securities worth S$85.57 million changing hands.
Breaking News
The STI continues to face headwinds due to inflationary concerns both globally and locally. From the recent Consumer Price Index (CPI) data for June 2022, the United States saw its inflation rate rise to 9.1 per cent, the highest seen in 40 years. This was partly due to the increase in global commodity prices as well as supply chain disruptions in the wake of the Russia-Ukraine conflict and the lockdowns in China. It has pressured the US Federal Reserve to be more aggressive with its rate hikes as previous attempts to curb inflation appeared to have remained futile. It is expected that the Federal Reserve may raise interest rates by 75 to 100 basis points during the upcoming FOMC meeting on Jul 26-27, 2022.
Since its secondary Singapore listing on May 20, $NIO Inc. USD OV(NIO.SG$ has risen from US$16.90 to US$19.88 on Jul 21, generating an 18 per cent return, while ranking among Singapore's 50 most traded stocks. Inside the 40 plus percentage swings the stock has seen in the space of just 2 months, there have been multiple technology, consumer, environmental, not to mention broader China growth factors at play. This has provided a platform for a lively share price, with the significant trader participation achieving accolades in tradability metrics.
Inverted Singapore bond yield curve adds to expectations for higher mortgage rates
The Singapore government securities yield curve has inverted, which means an increase in home mortgage rates and other borrowing costs pegged to short-term interest rates is not far off.
On Jul 20, the yield on 10-year Singapore Government Securities (SGS) closed at 2.78 per cent — below the 2-year SGS yield of 2.84 per cent.
Stocks & REITs to Watch
$SATS(S58.SG$ : Mainboard-listed inflight caterer and ground handler Sats on Friday (Jul 22) posted a net loss of S$22.5 million for the first fiscal quarter ended June, reversing from a net profit of S$6.4 million in the corresponding quarter last year.
The group attributed the net loss for the quarter to lower government grants and increased costs that were booked as the group invested in resources ahead of a full recovery by the aviation sector. Excluding government reliefs, losses for Q1 FY2023 would have stood at S$31.9 million, versus a net loss of S$35.6 million in Q1 FY2022.
$IFAST(AIY.SG$ : Fintech platform iFAST Corp on Saturday (Jul 23) reported a net loss of S$2.69 million for Q2 2022, reversing from a net profit of S$7.02 million a year ago. It was weighed down by a one-time impairment allowance following the restructuring of its India business.
Total revenue was 5.8 per cent higher at S$53.91 million, and included an initial contribution of S$3.92 million from iFAST Global Bank in the United Kingdom.
$Pan Hong(P36.SG$ : Singapore Exchange-listed property developer Pan Hong is cautiously optimistic that core housing demand in China will improve as Chinese cities start to introduce measures to support the housing market.
$Sinjia Land(5HH.SG$ : No charges have been brought against any of Sinjia Land's board members and employees so far, including group chief executive officer Cheong Weixiong, the Catalist-listed company said in a statement on Friday (Jul 22).
This comes after the backpacker hostel operator announced earlier this week that Cheong, who is also the company's executive director, was interviewed by the Commercial Affairs Department (CAD) in connection to an offence under the Securities and Futures Act.
Latest Share Buy Back Transactions
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