Tue, 24 Nov 2020

Roundup: Singapore stocks end down 1.22 pct

24 Sep 2020, 20:44 GMT+10

SINGAPORE, Sept. 24 (Xinhua) -- Singapore shares closed 1.22 percent lower on Thursday, as worries over a coronavirus second wave in Europe and dire economic outlook in the United States weighed on investors' sentiment.

U.S markets plunged on Wednesday after more Federal Reserve officials stressed the need for more fiscal stimulus to lift the U.S. economy from a coronavirus-induced recession. Federal Reserve Chairman Jerome Powell had reiterated on Tuesday there is a long way to go for the economic rebound, which will likely require more support.

Meanwhile, crude oil prices rose after the Energy Information Administration (EIA) report showed declines in U.S. crude and refined product inventories, but gains were limited by renewed concerns over the speed of the economic recovery from the pandemic.

Maybank-Kim Eng Retail Research said "technically, the Straits Times Index is rebounding from oversold levels with support at the 2,450 points and overhead resistance at 2,570 points."

Singapore's benchmark Straits Times Index fell 30.32 points to 2,450.82 points. Trading volume was 1.33 billion shares worth 1.21 billion Singapore dollars. Decliners outnumbered advancers 281 to 135.

Among top actives, Wilmar International fell 0.46 percent to 4.36 Singapore dollars. It updated that issue price for the proposed listing of its subsidiary, Yihai Kerry Arawana (YKA), on the Shenzhen Stock Exchange ChiNext Board will be fixed at 25.70 Chinese yuan per share.

This translates to a price-earning multiple of 31.12 times based on YKA's financial year 2019 recurring net profit and enlarged post-IPO share capita.

The proceeds raised will be about 13.9 billion Chinese yuan while strategic investors, comprising state-owned funds, sovereign wealth funds and insurance companies, have been allocated 30 percent of the IPO shares. The proposed listing is planned to take place by mid October, and the strategic investors will be subjected to a one-year holding moratorium.

Among top gainers, Singapore Exchange rose 0.67 percent to 9.04 Singapore dollars, while Venture Corporation became one of the top losers by falling 0.78 percent to 19 Singapore dollars. (1 U.S. dollar equals to 1.38 Singapore dollars)

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