It has not been a good week for the Singapore market, with tensions between the US and Turkey dragging global markets down.
Some positive news trickled in yesterday as July's non-oil domestic exports (Nodx) registered 11.8 per cent growth year on year, above consensus expectations of a 7.4 per cent rise, although analysts were doubtful that the performance can be sustained in the months ahead.
The key Straits Times Index (STI) closed down 2.49 points or 0.08 per cent at 3,209.44 yesterday, capping five sessions of straight losses. It lost 75.34 points or 2.3 per cent over the course of the week.
About 992 million shares worth $985 million changed hands, compared with 1.52 billion shares worth $1.05 billion on Thursday. Gainers and losers were evenly matched, with 193 securities up to 185 down.
Performance was mixed for the three banks in trading yesterday. DBS edged down one cent or 0.04 per cent to $25.09. United Overseas Bank finished higher at $26.81, gaining 12 cents or 0.45 per cent.
OCBC Bank gained two cents or 0.18 per cent to end at $11.22.
Units of Starhill Global Reit gained half a cent or 0.7 per cent to close at 68 cents after OCBC Research upgraded the retail and office Reit from "neutral" to "buy".
Analyst Andy Wong said the worst appears to be over for the Reit, observing that its committed Singapore office occupancy has improved to 95 per cent as of June 30.
Even though July's Nodx growth outstripped the previous month's 0.8 per cent year-on-year increase, UOB market researchers noted the better performance came mainly from the volatile pharmaceuticals segment. They are maintaining their forecast of 6.5 per cent growth for Nodx for the year, compared with 8.8 per cent last year.
"The exports of electronics remained weak and we are concerned about the ongoing US-China trade tensions (as well as US trade tensions with the rest of the world)," they wrote. "These will certainly cloud the outlook for a very trade-dependent Singapore."
As a better-than-expected corporate earnings season draws to a close, aviation and plantation sectors stand out as top performers, said a team of UOB KayHian researchers led by Mr Andrew Chow.
However, external issues, including the trade war, rising interest rates and volatile currencies, could affect market growth, they said.
As a result, they have revised their market earnings per share forecast down to 6.8 per cent and 7.4 per cent year on year for 2018 and 2019, respectively, down from 8.6 per cent and 9.5 per cent.
