Image from shutterstock

By Margaret Yang, CMC Markets
Commodities – Crude oil prices climbed higher after Iraq mentioned new freeze talks and US crude output fell. WTI oil futures closed up 3.8% to $44.18 before sliding to $43.67 this morning. The panic associated with the Doha meeting failure gradually faded away and the market has started to look forward. Last week’s US commercial crude oil inventories increased by 2.08 million barrels, less than market expectation. However the total inventory of 538.6 million barrels is still at an historical high. US domestic crude production slid 0.26% to 8.953 million barrels per day from 8.977 million a week ago.
Equities –The Shanghai Composite plunged 2.31% and closed below 3,000 points yesterday. The Hang Seng Index lost 0.93%. A lot of reasons behind the selloff were discussed: firstly, the market is worried that rising inflation will eventually lead to tighter monetary policy; secondly, profit taking was observed after the index rebounded from 2,650 to 3,050 points. Lastly, a joke was spreading through the market, attributing the slump to the “sell before exam” effect. According to the new rules and regulations, thousands of private equity chiefs and fund managers will need to go for the fund qualification certificate exam on 23rd Apr, this coming Sunday.
However, investors should not be overly pessimistic about this slump. Let’s look at another important data released yesterday: China’s first quarter property loans soared 22.2% year on year, signalling a strong rebound in China’s property market. Indicators across the board such as property investment, sales and new developments were all picking up. Revived property related activities will buffer a slowing economy and may support rebounding commodity prices such as iron ore.
The immediate support level for the Shanghai Composite is at 2,905 and the resistance level is 3,085.
Singapore Exchange (SGX) announced quarterly earnings of $89 million and declared an interim dividend of 5 cents, up from the previous 4 cents. Its revenue and net profit went up 3% and 1% respectively, in line with expectation. The growth comes from increased trading activity in the volatile equity and commodity markets at the beginning of this year. Revenues have grown marginally across its three main business lines, namely equity and fixed income, derivatives, market data and connectivity.
CapitaLand 1Q earnings, measured by total Profit after Tax and Minority Interest (PATMI) rose 35.4% year on year to S$218.3 million. This is mainly due to the fair value gain realised from the divestment of a property in Beijing. The adjusted operating PATMI grew 10.6% on account of higher contributions from development projects in China, new contribution from CapitaGreen, and better operating performance for the shopping mall and serviced residence businesses. Earnings per share (EPS) climbed to S$0.051, marginally beating expectations of $0.050.
Crude Oil West Texas June 2016
market_oil
About the author
Margaret Yang Yan, CFA, is a market analyst for CMC Markets Singapore.

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments
You May Also Like

SGX-listed company Centurion Corp clarifies media reports in relation to its Q4 2019 and FY 2019 net profits

In a statement on Monday (18 May), the board of directors of…

Four money lessons from Califonia Fitness closure in Singapore

By SingSaver.com.sg Customers lost thousands of dollars when California Fitness closed its branches…

Singapore banks creaking under relief measures and global lockdowns

The concurrence of recent relief measures and unprecedented lockdowns worldwide and regionally…

Three best credit cards for online shopping in Singapore

By SingSaver.com.sg Don’t click the ‘checkout’ button without these credit cards for online…