Market Review
SINGAPORE shares ended higher on Monday (Sep 25), as the Republic continued to post softer inflation data in August.
The benchmark Straits Times Index (STI) gained 0.3 per cent, or 10.58 points, to close at 3,215.4. Losers outnumbered gainers 277 to 252, after 1.1 billion shares worth S$682.9 million changed hands.
Local News to Watch
Indonesia May Issue Regulations on Social Media E-commerce This Week
Shares of Asian tech company Sea Limited surged on Monday after new revelations regarding major competitor TikTok. In Indonesia, TikTok Shop is quickly taking over the e-commerce market. But as early as tomorrow, Indonesia may release regulations that would make it harder for a social media platform like TikTok to integrate e-commerce capabilities.
Sea has three major parts of its business, one of which is e-commerce with its Shopee platform. If growth for TikTok Shop is suddenly hampered by stricter regulations, it would be good for Shopee, in theory. And that's why Sea stock was up 11.79% on Monday.
Sea stock is down 90% from its all-time high, and expectations for the company are low right now. These low expectations are partially fueled by fears regarding competition like TikTok. Maybe expectations can now bounce back if Indonesia changes the rules of the game. Sea is still growing and profitable, which could mean that it's in a good position to bounce back as the business executes.
Singapore Investment Banking Fees Down 20% Y-O-Y so Far This Year
Investment banking fees generated in Singapore so far this year have fallen 20% y-o-y to US$585.2 million ($799.33 million), with DBS Group Holdings - currently in the lead with a total of US$73.6 million, taking 13% share of the total fee pool.
Based on preliminary data until Sept 21, banks’ advisory fees earned from completed M&A transactions total US$183.6 million in 9M2023, down 32% y-o-y, reports market data provider Refinitiv.
More broadly, the value of announced M&A transactions with any Singapore involvement totals US$35.0 billion so far in 2023, 65% lower y-o-y, forming the lowest first nine-month total since 2013. The number of Singapore deals also declined 1% over the same period.
Singapore Aug Core Inflation Rises 3.4%
Singapore's key consumer price gauge rose 3.4% in August, almost matching economists' forecasts, and easing compared with July's figures due to lower inflation for services, food, retail and other goods, official data showed on Monday.
The core inflation rate - which excludes private road transport and accommodation costs - climbed 3.4% year-on-year in August, almost in line with a forecast in a Reuters poll of economists of 3.5%, and lower than the 3.8% seen in July.
"Global supply chain frictions have largely eased, and food commodity prices remain below year-ago levels," said a joint statement by the Monetary Authority of Singapore (MAS) and the trade ministry.
Lawrence Wong to Become Deputy Chairman of GIC From Oct 1
DEPUTY Prime Minister Lawrence Wong will assume the post of deputy chairman of GIC from Oct 1.
“As deputy chairman, Mr Wong will assist the chairman to lead the board in overseeing GIC’s long-term asset allocation and portfolio performance,” announced the sovereign wealth investor on Monday (Sep 25).
Prime Minister Lee Hsien Loong is the current chairman of the GIC board.
Economists expect MAS to maintain monetary policy settings
THE Monetary Authority of Singapore (MAS) will likely stick to the status quo at October’s monetary policy meeting, economists said after MAS and Ministry of Trade and Industry (MTI) data showed August’s inflation prints – the last to release before the meeting – cooling for the fourth straight month on Monday (Sep 25).
Headline consumer price index (CPI) slipped to 4 per cent on year from July’s 4.1 per cent, matching Bloomberg’s median forecast. This was on account of drops in core and accommodation inflation, which more than offset private transport inflation’s increase.
Core inflation, which excludes accommodation and private transport, dipped to 3.4 per cent on year in August, from 3.8 per cent in July. The reading was a tick lower than economists’ 3.5 per cent median estimate and was largely due to lower inflation for services, food, and retail and other goods.
