Singapore Stock Market News

UOB Kay Hian Market Outlook & Strategy

StockFanatic
Publish date: Fri, 03 Oct 2014, 10:43 AM
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REVIEW:
The FSSTI continued its losing streak, declining 1.5% mom in September. Global markets were spooked by concerns, such as geopolitical risks and the global economic recovery. An area of interest is the differing strength in the recovery of advanced economies, leading to expectations of divergence in monetary policies.

As a result, the ECB is offering more stimulus (rate cuts and asset purchases) while the US Federal Reserve is gradually scaling back its monetary stimulus.

In Singapore, key developments included a sharp fall in Noble's share price as substantial shareholder China Investment Corporation (CIC) pared down its stake. Against the uncertain outlook, investors switched back to defensives, with sectors such as healthcare (+1.2% mom) and media (+1.2% mom) outperforming. Hardest hit were high-beta sectors, such as shipping (-7.5% mom) and supply chain (-7.3% mom).
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