2,453.030
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STI overturns early losses to end 0.5% higher on Thursday
02 Apr 2020 18:22
By Navin Sregantan
SINGAPORE'S Straits Times Index (STI) had a strong finish on Thursday, even as investors grapple with a rising rate of Covid-19 infections in the West and the growing sense that the worst is now over for Asia.
That said, equities found some support on higher oil prices, on hopes that a price war between Saudi Arabia and Russia can be resolved. Prices of black gold were also lifted by news that China may add more oil to its state reserves.
The STI traded more than 1.5 per cent lower in the early session, but eventually clawed back those losses after a strong opening in Europe and the futures market pointed to a positive open in the US. The local blue-chip index closed 12.76 points or 0.5 per cent higher at 2,453.03, with 14 of its 30 constituents ending in the red.
Elsewhere in the Asia-Pacific, equity benchmarks were mixed. China, Hong Kong, Malaysia and South Korea registered gains. On the other hand, Australia, Japan and Taiwan ended lower.
In the local market, Singapore real estate investment trusts (S-Reits) continued to decline with the iEdge S-Reit Index ending 37.29 points or 3.4 per cent lower at 1,057.58.
On Thursday, DBS Group Research lowered its recommendations for some retail-focused S-Reits given that they face headwinds from lower shopper numbers and a bill that provides temporary relief to tenants on rental obligations for up to six months due to the Covid-19 outbreak.
DBS analysts Derek Tan and Rachel Tan wrote that Reit managers are likely to focus on conserving cash. This could see payout ratios fall from 100 per cent to 90 per cent for most retail S-Reits and distributions to unitholders lowered by 14 to 27 per cent due to rental rebates for tenants.
Nonetheless, DBS has preferred picks in this sector. They include the STI's Mapletree Commercial Trust (down S$0.13 or 7.4 per cent to S$1.62) and Lendlease Reit (down S$0.025 or 4.8 per cent to S$0.495), which is trading far below its initial public offer price of S$0.88.
Among telcos, Singtel shares continued to outperform the market, advancing S$0.10 or 4 per cent to S$2.62. Singtel's stock has jumped 8.2 per cent since reports emerged that Australian unit Optus could be selling its tower portfolio for A$2 billion (S$1.76 billion).
Meanwhile, telco infrastructure play Netlink NBN Trust added S$0.02 or 2.3 per cent to S$0.90.
Citi Research analyst Hussaini Saifee pointed out that risks facing the business trust due to the Covid-19 outbreak are "likely limited and even if its regulated returns are revised down". The bank-brokerage is of the view that Netlink units would still be trading at a "sustainable" dividend yield of 5.5 per cent in a worst-case scenario.
STI counters sensitive to the price movements of oil were also up. Keppel Corp added S$0.22 or 4.2 per cent to S$5.51 and Sembcorp Industries gained S$0.02 or 1.3 per cent to S$1.55.
Across the Singapore market, advancers outpaced decliners 229 to 210, with 1.49 billion securities valued at S$1.56 billion changing hands.
Source: Business Times Breaking News
US: Oil jump lifts Wall St as jobless claims data surges
03 Apr 2020 05:57
[NEW YORK] US stocks rallied on Thursday as hopes for a truce in the price war between Saudi Arabia and Russia and a cut in oil output drove gains, taking some sting out of a shocking jump in Americans filing jobless claims due to coronavirus-led lockdowns.
The S&P energy index, down by more than 50 per cent this year due to the Russia-Saudi price war and coronavirus-driven demand worries that has caused oil prices to plunge, climbed 9.08 per cent.
Saudi Arabia has called for an emergency meeting of oil producers, while US President Donald Trump said he expected the kingdom and Russia to cut output by as much as 10 million to 15 million barrels a day. That helped US crude futures settle up 24.7 per cent, and Brent up 21.5 per cent, their biggest daily percentage gains on record.
Still, major averages waded into negative territory multiple times before a late rally pushed stocks higher to close near session highs.
"It got beaten up so badly, you don't rally like this unless it was many people thinking this got overdone," said JJ Kinahan, chief market strategist at TD Ameritrade in Chicago.
The Dow Jones Industrial Average rose 469.93 points or 2.24 per cent to 21,413.44, the S&P 500 gained 56.4 points or 2.28 per cent to 2,526.9 and the Nasdaq Composite added 126.73 points or 1.72 per cent to 7,487.31.
The list of top gainers on the benchmark S&P 500 was littered with oil companies. Occidental Petroleum surged 18.90 per cent, with names such as Apache Corp and Halliburton also seeing double-digit percentage gains.
A bump in prices may still not be enough to save some of the debt-laden US shale companies that are on the brink of bankruptcy as demand continues to plunge due to the coronavirus pandemic.
Analysts foresee a further decline in US stocks as country-wide shutdowns to limit the spread of the virus result in a virtual halt in business activity and force companies to lay off employees and save cash.
Boeing, once a symbol of America's industrial might, has offered buyout and early retirement packages to employees, sending its shares down 5.68 per cent.
Investors continue to absorb a wave of bad economic news that will continue to paint a grim picture. Initial claims for unemployment benefits last week rose to 6.65 million, exceeding the top end of economists' estimates at 5.25 million.
"Overall this is a little bit of a victory in and of the fact that it was such a bad number and the market did kind of shake it off. It is also the market preparing for a lot more bad numbers," said Mr Kinahan.
As earnings season slowly begins to get underway, Walgreens fell 6.30 per cent after the drugstore retailer reported a steep decline in US same-store sales in the last week of March.
Advancing issues outnumbered declining ones on the New York Stock Exchange by a 1.61-to-1 ratio; on Nasdaq, a 1.34-to-1 ratio favoured advancers.
The S&P 500 posted no new 52-week highs and 20 new lows; the Nasdaq Composite recorded 6 new highs and 132 new lows.
Volume on US exchanges was 12.64 billion shares, compared with the 15.87 billion average for the full session over the last 20 trading days.
REUTERS
Source: Business Times Breaking News
US: Oil jump lifts Wall St as jobless claims data surges
03 Apr 2020 05:57
[NEW YORK] US stocks rallied on Thursday as hopes for a truce in the price war between Saudi Arabia and Russia and a cut in oil output drove gains, taking some sting out of a shocking jump in Americans filing jobless claims due to coronavirus-led lockdowns.
The S&P energy index, down by more than 50 per cent this year due to the Russia-Saudi price war and coronavirus-driven demand worries that has caused oil prices to plunge, climbed 9.08 per cent.
Saudi Arabia has called for an emergency meeting of oil producers, while US President Donald Trump said he expected the kingdom and Russia to cut output by as much as 10 million to 15 million barrels a day. That helped US crude futures settle up 24.7 per cent, and Brent up 21.5 per cent, their biggest daily percentage gains on record.
Still, major averages waded into negative territory multiple times before a late rally pushed stocks higher to close near session highs.
"It got beaten up so badly, you don't rally like this unless it was many people thinking this got overdone," said JJ Kinahan, chief market strategist at TD Ameritrade in Chicago.
The Dow Jones Industrial Average rose 469.93 points or 2.24 per cent to 21,413.44, the S&P 500 gained 56.4 points or 2.28 per cent to 2,526.9 and the Nasdaq Composite added 126.73 points or 1.72 per cent to 7,487.31.
The list of top gainers on the benchmark S&P 500 was littered with oil companies. Occidental Petroleum surged 18.90 per cent, with names such as Apache Corp and Halliburton also seeing double-digit percentage gains.
A bump in prices may still not be enough to save some of the debt-laden US shale companies that are on the brink of bankruptcy as demand continues to plunge due to the coronavirus pandemic.
Analysts foresee a further decline in US stocks as country-wide shutdowns to limit the spread of the virus result in a virtual halt in business activity and force companies to lay off employees and save cash.
Boeing, once a symbol of America's industrial might, has offered buyout and early retirement packages to employees, sending its shares down 5.68 per cent.
Investors continue to absorb a wave of bad economic news that will continue to paint a grim picture. Initial claims for unemployment benefits last week rose to 6.65 million, exceeding the top end of economists' estimates at 5.25 million.
"Overall this is a little bit of a victory in and of the fact that it was such a bad number and the market did kind of shake it off. It is also the market preparing for a lot more bad numbers," said Mr Kinahan.
As earnings season slowly begins to get underway, Walgreens fell 6.30 per cent after the drugstore retailer reported a steep decline in US same-store sales in the last week of March.
Advancing issues outnumbered declining ones on the New York Stock Exchange by a 1.61-to-1 ratio; on Nasdaq, a 1.34-to-1 ratio favoured advancers.
The S&P 500 posted no new 52-week highs and 20 new lows; the Nasdaq Composite recorded 6 new highs and 132 new lows.
Volume on US exchanges was 12.64 billion shares, compared with the 15.87 billion average for the full session over the last 20 trading days.
REUTERS
Source: Business Times Breaking News
Source and recommended reads
https://sginvestors.io/market/sgx-share-price-performance/straits-times-index-constituents
https://sginvestors.io/market/sgx-breakout-price-3-month-high-volume-above-average
https://sginvestors.io/market/sgx-breakout-price-3-month-low-volume-above-average
https://sginvestors.io/market/sgx-top-short-sell-by-value
https://sginvestors.io/market/sgx-top-short-sell-by-volume
https://www.investingnote.com/posts/1852141
Singapore business news
https://www.businesstimes.com.sg/stocks
https://www.straitstimes.com/business/companies-markets
https://www.theedgesingapore.com/
US Indices & stocks performance
https://www.investing.com/indices/
https://money.cnn.com/data/fear-and-greed/
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