Singapore shares closed broadly lower on Monday due to mixed earnings results and profit-taking activities among banks, property and offshore names.

As crude oil prices consolidate, Singapore’s offshore and marine sectors remain weak, in the wake of disappointing quarterly results. DBS Bank (-1.5%) slid for a second day after it announced quarterly earnings which were in line with expectations. 

The forex market was little moved last night, as investors continued to digest robust jobs data and assess the possibility of another rate hike by the end of this year. St. Louis Fed President James Bullard expressed dovish views last night, saying that the current level of short-term interest rate was appropriate given the fact that wage growth and inflation remain weak.  The market anticipates a 45.5% chance of a December rate hike, according to the CME’s FedWatch tool. 

Today, China trade balance data will be the key focus during Asian hours. It is likely to drive the movement of Asian equities. The market anticipates its exports and imports to grow by 10.9% and 16.6% respectively, slightly lower than the previous month’s readings. A higher trade surplus will boost investors’ confidence. Meanwhile, we cannot overestimate the significance of the escalating trade tensions between the White House and Beijing, as President Trump is reportedly considers adopting Section 301 of the Trade Act to retaliate against China. 

Technical Analysis:

DBS Group
•Immediate support level at S$21.00
•10-Day Simple Moving Average turned bearish
•SuperTrend (10,2) has flipped from red to green, suggesting more downside
•MACD has formed a bearish crossover 

Singapore earnings highlight:

UOL Group (Q2):

  • Overall: beat estimates
  • Q2 net profit surged 78% year on year (YOY) to S$121.8 million mainly due to Principal Garden and fair value gains on investment properties 
  • Revenue up 10% to S$339 million, driven by 16% revenue increase in property development
  • Earnings per share (EPS) of S$0.136, beating estimates of S$0.12

Jardine Matheson (H1):

  • Overall: beat estimates
  • Revenue increased by 10% YOY, to US$38 billion
  • Profit up 20% to US$765 million, mainly attributed to Jardine Pacific, Jardine Motors and Hongkong Land
  • EPS S$2.04, beating estimation of S$1.50

Jardine Cycle & Carriage (H1)

  • Overall: in line with estimates
  • Revenue increased 11% to US$8.5 billion mainly due to growth in Astra’s business
  • Underlying profit grew by 13% to US$375 million
  • EPS rose 22% to US1.01
  • Astra contributed US$315 million to the Group’s underlying profit, whereas the Group’s Direct Motor Interest contribution saw a 20% decline to US$63 million. 

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