U.S. Inflation Data Exceeded Expectations To Boost Asian Stocks and the Straits Times Index
2022-12-15 05:00uSMART

Source: Lianhe Zaobao

15 December 2022


The US inflation data released was better than expected, pushing Asian stock markets higher. The Straits Times Index closed at 3,278.57 points on Wednesday, December 14, up 7.29 points or 0.22%.

Other stock markets in the Asia-Pacific region also rose, with Taiwan leading the way, up 1.49%. Seoul and Tokyo rose 1.13% and 0.75%, respectively. Sydney and Hong Kong also rose 0.67% and 0.39% respectively. Shanghai was basically flat, up 0.2 points and Shenzhen fell 0.09%.

uSMART Securities market strategist Huang Jia Ren said in an interview with Lianhe Zaobao that the US November Consumer Price Index was better than expected, pushing up most stock markets in the Asia-Pacific region. As a rate hike of 50 basis points has become a market consensus, the key factor affecting the stock market now is the speech by Federal Reserve Chairman Jerome Powell. If the tone of his speech is eased, US stocks and Asian stock markets may continue to rise. If the Straits Times Index can successfully break through 3,300 points, 3,450 points will be the next resistance level.

The investment portfolio manager for Philip Securities, Dr. Han Wei, is cautious about the market's future trend. He said that the recent attitude shift of the Federal Reserve has caused a high-level fluctuation in the US stock market. However, inflation data that is better than expected has also boosted investors' optimism. But, from the fact that the increase in the US stock market at the end of the day after the inflation data was announced has dropped significantly, it can be seen that there is still a phenomenon of high-level speculation in the market. It is not ruled out that the stock market will fall after the good news runs out.

He also said that the rebound of trust stocks supported the opening of the Straits Times Index on Wednesday morning, but due to the limited inflow of funds in recent periods, it is unclear whether it can continue to rebound.

The local stock market has a total turnover of 1.18 billion shares and a total turnover of 1.31 billion yuan. There are 310 stocks that went up and 196 stocks that went down. In terms of component stocks, 22 went up, 5 went down, and 3 remained unchanged.

The stocks with the largest increase are the Capitaland Mall Trust (CMLT) and the Mapletree Commercial Trust (MACT). The former started at 3.02%, closed at 2.05 yuan; the latter started at 2.42%, closed at 1.69 yuan.

The stocks with the largest decrease are SingTel and UOB, which fell 2.26% and 1.09% respectively, closing at 2.59 yuan and 30.91 yuan.

In terms of individual stock news, Stamford Tyres announced its 2023 interim financial results after-hours, with the group's net profit significantly rising to 2.13 million yuan as of the end of October, compared to only 700,000 yuan in the same period last year. Earnings per share were 0.9 cents, compared to 0.29 cents last year. The company's revenue also increased by 10.24% to 97.01 million yuan, benefited by the increase in sales in Southeast Asia market. Stamford Tyres closed at 0.183 yuan, with no change in stock price.

H2G Green, which is listed on the Catalist board, announced during trading hours that it has entered into an agreement with Hongkong China Treasury to raise S$3 million by issuing new shares at a price of 2.11 cents per share. This will result in an increase of 11.45% in the company's existing number of shares. Additionally, RD Property Holdings, a subsidiary of Allianz Holdings, will acquire 49.9% of the share capital of Green Energy Investment Holdings, a subsidiary of H2G Green for S$200,000. H2G Green remained unchanged at 2.4 cents.

KOP Holdings announced after-hours that it received RMB 158.37 million (approximately SGD 30.6 million) from Shanghai Hongbin Real Estate on Monday, December 12th as per the result of arbitration. This amount is related to the sale of KOP's joint venture, Shanghai Yaoxue Real Estate. Together with the previously received RMB 235.15 million from  Shanghai LuJiaZui Zhi Mao Investment Co, after deducting all expenses and taxes, KOP has received a total of RMB 392.19 million. Out of this amount, RMB 300 million will be invested in Shanghai Yaoxue Real Estate as the company's registered capital. KOP fell 5.88% to 4.8 cents.

CDL Hospitality Trusts announced that the trust has signed a 10-year lease agreement with Banyan Tree Holdings to continue renting and managing Angsana Velavaru, a resort in the Maldives. The new contract will start on February 1st next year. The trust's stock rose 0.8% to SGD 1.25.

Lian Beng(LIBG) group  announced that the group has completed the sale of a commercial real estate property at 281 Rochor Road. Lian Beng's stock fell 3.77% to SGD 0.51.



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