Saturday, September 4, 2010

Singapore Monthly Market Review

Market Review :-
The FSSTI advanced 5.4% in local terms in July. Higher beta stocks led the market recovery with property stocks outperforming the index. Defensive names such as ST Engineering and SMRT lagged and declined in absolute terms mom. The SGD strengthened 2.4% against the USD to end the month at 1.362. Singapore's 2Q advanced GDP rose 19.3 yoy, exceeding all expectations. This led the government to upgrade its 2010 GDP growth forecast to 13-15% from an earlier forecast of 7-9%. Growth was led by the manufacturing secotr which surged 45% yoy, including the volatile biomedical sector. Services showed double digit growth too, as the opening of the integrated resorts created record visitor arrivals.

Residential property prices and transaction volumes moderated in the second quarter but show sign of picking up of late, with strong interest in some mass market condominium launches. The Singapore market is currently trading on a 14x earnings multiple which is slightly below its histroial mean.

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