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SG Morning Highlights: Singapore factory output grows 0.5% in August, beating economists' estimates

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Moomoo News SG wrote a column · Sep 26, 2022 20:06
SG Morning Highlights: Singapore factory output grows 0.5% in August, beating economists' estimates
Good morning mooers! Here are things you need to know about today's Singapore:
●Singapore shares opened lower on Tuesday; STI down 0.24%
●Singapore factory output grows 0.5% in August, beating economists' estimates
●Stocks & REITs to watch: Silkroad Nickel
●Latest share buy back transactions
-moomoo News SG

Market Trend
Singapore shares opened lower on Tuesday. The $FTSE Singapore Straits Time Index(.STI.SG)$ decreased 0.24 per cent to 3,174.44 as at 9.03am.
Advancers / Decliners is 56 to 62, with 28.40 million securities worth S$58.94 million changing hands.

Breaking News
Indonesia had a budget surplus of 107.4 trillion rupiah (S$10.2 billion) in the January to August period, equivalent to 0.58 per cent of gross domestic product, its finance minister said on Monday (Sep 26), compared with a 2.26 per cent deficit in the same period in 2021.
Finance Minister Sri Mulyani Indrawati said the government was still, however, expecting to pay large energy subsidies in the third and fourth quarters of this year.
"We will use all of our excellent state revenue," she told a news conference, referring to the financing of the subsidies.
Singapore's factory output expanded by 0.5 per cent on the year in August, down from a revised 0.8 per cent growth in July, according to data from the Singapore Economic Development Board (EDB) on Monday (Sep 26). The month's figures, while an 11-month low, outperformed median estimates of a Bloomberg poll of private-sector economists, who had expected a 0.7 per cent contraction.
However, excluding the volatile biomedical cluster, factory output shrank by 1.2 per cent, compared to a 3.1 per cent increase in the preceding month. August's ex-biomedical reading is "the first negative print since November 2020 ... reinforcing our view for a softer industrial production growth for the whole of this year", said RHB senior economist Barnabas Gan.
These figures came as declines were recorded in the key electronics cluster and chemicals cluster. They are the latest in a weakening manufacturing outlook, with Singapore's purchasing managers' index having fallen in August to the 50.0 border between expansion and contraction, similarly dragged down by electronics.
Britain's homebuilders index hit a more than 11-year low on Monday (Sep 26) on concerns that a weaker pound could lead to more rate hikes by the Bank of England, potentially hurting house prices and demand.
The pound plunged to a record low against the US dollar early on Monday and British bonds were slammed on concerns over the government's fiscal plan, unleashing calls for the Bank of England to deliver an immediate rate hike to restore investor confidence.
"(It's) more to do with massive rate hikes killing the sector," Markets.com analyst Neil Wilson said.
Gold prices fell to a new 2-1/2-year low on Monday (Sep 26), weighed down by a sturdy dollar and prospects of further interest rate hikes by the US Federal Reserve to bring down inflation.
Spot gold was down 0.3 per cent at US$1,638.59 per ounce, as of 12.53 am GMT, after hitting its lowest level since April 2020 earlier in the session.
US gold futures fell 0.6 per cent to US$1,645.8.
Analysts bearish on British pound; weaker UK economy to hurt S-Reits, companies
The British pound is likely to continue to weaken as the United Kingdom pursues policies to jumpstart corporate growth amid soaring inflation caused by the European energy crisis.
Analysts predict that the pound could test further lows against the Singapore dollar, after reaching a 4-decade intra-day low on Monday (Sep 26) of 1.50.
The steep drop could hurt Singapore businesses operating in the UK.
Still, the impact on most Singapore-listed real estate investment trusts (Reits) and companies is not expected to be severe due to their limited exposure to the UK economy and the building-up of hedges.
Stocks & REITs to Watch
$Silkroad Nickel(STP.SG)$ : An offer from Silkroad Nickel's executive director to privatise the Indonesia-based nickel ore miner has turned unconditional, with the total number of shares owned, controlled, or agreed to be acquired by offeror Horowitz Capital and its concert parties amounting to 90.2 per cent of total shares.
This translates to 235.5 million shares as at 6pm on Monday (Sep 26).
Valid acceptances of the offer from the offeror's concert parties stood at 63.2 per cent, while valid acceptances from other shareholders stood at 27 per cent.
Latest Share Buy Back Transactions
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