Source: Lianhe Zaobao

November 17, 2022

Profit-taking led to a decline in the local stock market on Tuesday (November 16th). The Straits Times Index fell slightly by 0.28% or 9.11 points, closing at 3266.17 points.

When interviewed by Lianhe Zaobao, Lim Jit Wei, chief stockbroker at HLG Securities, said, "The slightly increased overnight US wholesale price index of 0.2%, which was lower than expected, initially drove the stock market up, but profit-taking eventually led to a closing decline."

Lim stated that the current resistance level for the Straits Times Index is at 3285 points. He added that the market's pullback is healthy and that a decline to 3175 points would create opportunities for investors and traders to re-enter the market.

The frequent news of corporate layoffs may raise concerns about an economic downturn, but from a market perspective, this can be a good thing as cost reduction can lead to an increase in profits."

According to James Ooi, market strategist at uSMART Securities (Singapore) Pte. Ltd, seasonal analysis shows that the stock market generally has an average 1.07% increase in December over the past 20 years. Investors can now continue to invest in stocks related to the reopening of the economy, such as transportation, retail, and hospitality industries. Bank stocks, due to their good dividends and higher net interest margins, remain attractive.

Asian stock markets only rose in Japan, while other markets decline. The Tokyo stock market rose slightly by 0.14%, while Shanghai, Shenzhen, and Hong Kong fell by 0.45%, 0.78%, and 0.47%, respectively. Taiwan fell slightly by 0.06%, Seoul and Sydney fell by 0.12% and 0.25%, respectively.

The local stock market had a full day of trading, with 1.7 billion shares traded, and a trading volume of 1.49 billion yuan. There were 292 rising stocks and 271 falling stocks. The component stocks fell more than they rose, with 16 falling, 7 remaining unchanged, and 7 rising.

ST Engineering had the largest increase, rising 2.34% to 3.50 yuan.

Among the declining stocks, Yangzijiang Shipbuilding had the largest decline, falling 2.96% to 1.31 yuan.

Moody's Investor Services has downgraded Lippo Malls Indonesia Retail Trust (LMIRT) from B3 to B2, and also downgraded the ratings of LMIRT's capital issuance of unsecured bonds from B3 to B2. LMIRT's stock price closed at 0.031 yuan, unchanged.

Keppel Corp's subsidiary, Keppel Infrastructure, announced on Wednesday (November 16th) before the market opened that it will acquire 49.9% of MET Italian Green Assets Holding for 30 million euros (42.6 million SGD). The latter will be renamed as Keppel MET Renewables Holding and will become a subsidiary of Keppel Corp.

As part of the strategic transaction, Keppel Infrastructure's subsidiary will sell a 10% stake in the seller of the aforementioned transaction, MET Green Assets Holding, for 31.86 million euros to the group's founder and CEO, Benjamin Lakatos. And plans to invest the proceeds into Keppel MET Renewables Holdings. Keppel Corp's stock price closed at 7.34 yuan, up 0.69%.

Haleyon Agri Corporation announced after the market closed that China Hainan Rubber will acquire 36% of the group's issued share capital at 0.315 USD per share (0.43 SGD) as a cash offer. Based on the acquisition, China Hainan Rubber will hold more than 30% of the shares, and will make a mandatory general offer (MGO) to Haleyon, subject to certain conditions. Haleyon's stock price closed at 0.29 yuan, unchanged.

Oversea-Chinese Banking Corporation (OCBC) announced on November 16th that it has appointed Noel Gerald DCruz as Group Head of Risk, and he will take office on January 1st and will be a member of the Group Management and Management Executive Committees.

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