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Singapore stocks end up 1.73 pct

by June 30, 2016 General

SINGAPORE, June 30 (Xinhua) — Singapore shares closed 1.73 percent higher on Thursday, as many investors returned to the market.

The Singapore bourse stormed past pre-Brexit levels as risk-on appetite returned globally. U.S. stocks rose for a second session amid speculation central banks will counter the effects of Brexit, and news that U.S. banks won permission from regulators to boost dividends and buybacks after passing the final round of the Federal Reserve’s annual stress tests.

Singapore’s benchmark Straits Times Index rose 48.2 points to 2,840.93 points. Trading volume was 1.5 billion shares worth 1.83 billion Singapore dollars. Advancers outnumbered decliners 252 to 138, while 515 stocks did not move.

DBS Group Holdings rose 1.6 percent to 15.76 Singapore dollars. Moody’s Investors Service has downgraded the outlook on Singapore’s banking system to negative from stable. Moody’s said the negative outlook over the next 12 to 18 months “reflects the weaker operating conditions for the banks, against the backdrop of softer domestic and regional economic and trade growth.”

The rating agency also expects higher risks to the Singapore banks’ asset quality and profitability from their high exposure to energy-related industries and the generally high leverage of local firms. Singapore’s growth will be adversely affected by the slowing domestic manufacturing sector, and weaker economic activity in its key trade partners.

Geo Energy dropped 1.8 percent to 11.3 Singapore cents. It divested its mining services and coal haulage services businesses under wholly owned subsidiaries, for 10 million U.S. dollars to PT Autum Bara Sejahtera. The disposal is expected to generate cost-savings of 1.7 million U.S. dollars in operating expenses and 1 million U.S. dollars in working capital per quarter for the group.

Among the top gainers, Jardine Matheson rose 2.3 percent to 58.31 U.S. dollars, whereas Venture Corporation became one of the top losers by falling 0.7 percent to 8.28 Singapore dollars. (1 U.S. dollar equals to 1.35 Singapore dollars) Enditem