Singapore stocks edged higher this week with the STI up 0.3%, following US labor market data and comments from a Federal Reserve official that bolster the case for an interest rate cut.
Meanwhile, Singapore’s retail sales grew 1% YoY in July, below estimates by private-sector economists polled by Bloomberg.
In terms of individual stocks, DBS rose 0.5%, OCBC rose 0.6%, Seatrium rose 5.4%, NIO surged 13.2%, Capitaland Investment (CLI) rose 3%, Genting Singapore gained 1.9%, and Yangzijiang Shipbuilding rose 1.2%.
Moreover, Singapore’s REIT shares gained this week. CapitaLand China Reit (CLCT) rose 6.5%, Keppel Reit rose 5.1%, Mapletree Logistics Trust (MLT) rose 2.9%, Keppel DC Reit rose 2.8%, Mapletree Industrial Trust (MIT) rose 1.6%, CapitaLand Ascendas REIT (Clar) and CapitaLand Integrated Commercial Trust (CICT) rose about 1%.
Market News
NIO Stock Jumps After Upbeat Outlooks for Revenue and EV Deliveries
NIO shares surged 13.2% this week as the China-based electric vehicle maker provided an upbeat outlook for the current quarter, with deliveries to reach another record and revenue to surprisingly rise above forecasts.
For the second quarter to June 30, Nio reported net losses that narrowed to RMB5.04 billion ($709.8 million), or RMB2.50 per American depositary share, from RMB5.79 billion, or RMB3.70 per ADS, in the same period a year ago.
With a total of 40,674 vehicles delivered in July and August, Nio expects delivery volume for the third quarter to “set another record” and market share to increase.
The company also projects revenue to be between RMB19.109 billion ($2.63 billion) and RMB19.669 billion ($2.71 billion), which is up from RMB19.067 billion and year ago and well above the current FactSet consensus for revenue of RMB18.129 billion.
Singapore Retail Sales up 1% in July on Higher Car Sales
Singapore’s retail sales grew 1 per cent year on year in July, reversing the 0.6 per cent fall posted in the month before, driven by strong motor vehicle sales.
The result was below estimates by private-sector economists polled by Bloomberg, who had expected July’s retail sales to grow 1.3 per cent year on year.
On a month-on-month, seasonally adjusted basis, retail sales gained 3.1 per cent, reversing from June’s 3.7 per cent decline, Department of Statistics (SingStat) data released on Thursday (Sep 5) showed.
Singapore's PMI Improves in August to Post Highest Reading in Three Years
Singapore's overall factory activity improved in August to post its highest reading in three years, according to data from the Singapore Institute of Purchasing and Materials Management (SIPMM) on Monday (Sep 2).
The purchasing managers’ index (PMI) gained 0.2 point to 50.9, marking the 12th straight month that it remained in expansionary territory, and its highest reading since August 2021.
A reading above 50 on the index indicates growth from the previous month, while one below 50 points to a contraction.
The linchpin electronics sector also hit its highest reading since September 2018. It rose 0.3 point to 51.3 in August and remained in expansion for 10 consecutive months.
CapitaLand Integrated Commercial Trust to Buy 50% Stake in Singapore Mall
CapitaLand Integrated Commercial Trust will acquire a 50% stake in Singapore's ION Orchard mall for an agreed property value of S$1.85 billion ($1.42 billion), the real estate investment trust said on Tuesday.
As per the deal, CapitaLand Integrated will acquire an entire stake in CapitaLand Retail Singapore Investments, the entity which owns the 50% interest in ION Orchard for a consideration of S$1.08 billion ($826.51 million) from CapitaLand Investment, the REIT said in a statement.
ION Orchard is an eight-storey destination mall at the gateway of Singapore's Orchard Road.
The deal is expected to be completed by the fourth quarter of 2024.
CapitaLand Aims to More Than Double India Funds Under Management by 2028
Singapore's CapitaLand Investment said on Wednesday it aims to more than double its funds under management in India by 2028 from S$7.4 billion ($5.66 billion) as of June 30.
This will contribute to the company's global target of achieving S$200 billion in FUM by 2028, the real estate investment manager said.
"The country is attracting demand from global corporations and institutional investors for quality real assets," Group CEO Lee Chee Koon said.
Singtel-Owned Optus, TPG Telecom Get Australia's Nod for Network-Sharing Deal
TPG Telecom has received a green light from Australia's competition watchdog for a A$1.59 billion ($1.07 billion) infrastructure and network sharing deal with Optus as TPG seeks to expand its reach.
The Australian Competition and Consumer Commission (ACCC) on Thursday gave its approval to TPG Telecom's arrangement with Singapore Telecommunications-owned Optus to share regional networks.
The regulator had earlier blocked a similar deal between TPG and rival telecom firm Telstra.
The Week Ahead
Unemployment Rate Final Q2
Singapore will release Unemployment Rate Final Q2 on Friday, September 13th.
Singapore’s seasonally adjusted unemployment rate ticked lower to 2% in Q2 of 2024, from 2.1% the previous quarter, a preliminary estimate showed. Despite the decline, the rate remained within the range of non-recessionary periods. The number of retrenchments rose slightly to 3,100 during the quarter, compared to 3,030 in Q2. Retrenchments levels were broadly stable in most sectors, with business reorganization or restructuring remaining the top reason for retrenchments. On the other hand, employment continued to increase, rising by 11,300, driven entirely by non-resident employment growth, while resident employment dropped slightly due to a seasonal contraction in retail trade. Overall, for the first half of the year, employment grew for both residents and non-residents.
Sources: Trading Economics
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