To The Moon

Singapore stocks rose slightly this week, with the STI up 1.1%, on easing recession fears and global central bank officials convened at the Jackson Hole Economic Symposium.

Meanwhile, Singapore July core inflation 2.5% y/y, lowest in more than two years.

In terms of individual stocks, SIA rose 1.6%, UOB rose 1.2%, Singtel fell 1.3%, Seatrium rose 4.2%, Sats jumped 12.6%, NIO rose 3.5%, Keppel rose 3.2%, Yangzijiang Shipbuilding fell 2%, Sinarmas Land soared 34.6%.

Market News

Singapore’s core inflation eases more than expected in July; headline inflation maintains pace

Singapore’s core inflation slowed more than expected in July, while headline inflation maintained the same pace as in the previous month, data from the Department of Statistics showed on Friday (Aug 23).

July’s headline inflation was 2.4 per cent, the same rate as in June and just a nudge lower than the median forecast of 2.5 per cent by private-sector economists polled by Bloomberg.

Core inflation, which excludes accommodation and private transport, was 2.5 per cent. This was lower than the 2.9 per cent recorded in June, as well as below economists’ median estimate of 2.9 per cent.

On a month-on-month basis, the overall consumer price index (CPI) fell 0.3 per cent in July, while core CPI dropped 0.1 per cent.

Sats jumps 13% after swinging back into the black for Q1

Shares of in-flight caterer and ground handler $Sats(S58.SI)$ jumped 12.6% this week, as it swung back into the black for the first quarter of fiscal year 2025 on higher revenue.

SATS on Tuesday posted a net profit of S$65 million for the first quarter ended Jun 30, 2024, from a loss of S$29.9 million over the same period a year earlier. This came as revenue for the period rose to S$1.4 billion, up 15.5 per cent from the S$1.2 billion it posted a year earlier.

In its Q1 business update, the company attributed this to the growth in revenue from both its gateway services and food solutions businesses.

Keppel gains 3% on $800 million of energy and environmental projects

$Keppel(BN4.SI)$ has inked a memorandum of understanding (MOU) with the Asian Development Bank (ADB) and Enterprise Singapore (EnterpriseSG) to explore US$800 million in energy-transition and environmental-sustainability opportunities in the Asia-Pacific region.

These projects are expected to be a part of the pipeline of infrastructure assets for Keppel.

Keppel shares gained 3.2% this week.

Sinarmas Land soars another 35% this week

$Sinarmas Land(A26.SI)$ shares has done very well over this week, posting an excellent gain of 34.6%. Looking back a bit further, it's encouraging to see the stock is up 18.2% in the last week.

The property developer last week posted Revenue for H1 rose 28.1 per cent to S$766.1 million, from S$598.1 million a year earlier. The comapny posted a 18.7 per cent drop in net profit to S$89 million for its first half ended Jun 30, 2024, from S$109.5 million in the previous corresponding period.

Earnings per share stood at 2.09 Singapore cents for the half year, down from 2.57 cents the previous year.

Seatrium shares gain 4%, and is still down 12% this month

As a volatile stock, $Seatrium(5E2.SI)$ stock gained over 4% this week despite no important news.

Offshore and marine specialist Seatrium early August marked its turnaround with a net profit of S$36 million for the first half ended Jun 30, reversing from a net loss of S$264.4 million in the corresponding year-ago period.

Revenue for the half year rose 39.1 per cent to S$4 billion, from S$2.9 billion the year before. The group attributed the increase to recognition from new-build projects, and increased repairs and upgrades activities. 

Seatrium said its return to profitability reflected its strong focus on executing projects and improving margins. This is the first time the company has reported profits for the half-year period since its formation in 2023.

The Week Ahead

Singapore's Industrial Production in July

Singapore will release its industrial production data for July on Monday afternoon.

The seasonally adjusted manufacturing output in Singapore contracted 3.8% month-on-month in June 2024, after rising by 0.5% in May, coming significantly more than market estimates of a 0.5% fall.

Singapore’s manufacturing production dropped 3.9% year-on-year in June 2024, following a downwardly revised 2.3% growth in the previous month and compared to market expectations of a flat reading.

Prudential will Release Quarterly Results on Tuesday, Aug 20

$Prudential(K6S.SI)$ will report the 2024 Half Year Results will be released at or around 12.00 noon (Hong Kong time) on Wednesday, 28 August 2024, and consider the payment of a 2024 first interim dividend.

Jefferies Equity Research identified how Prudential poses a distinctive challenge to investors due to market sensitivity. Prudential's first half of 2024 results are anticipated to face significant market headwinds, especially from falling yields in China impacting its Savings products. 

Although, with a $2b buyback in line, the shares are trading at super discounted multiple, and a less challenging comparative period for growth to be assessed against in the second half of the year.