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Coronavirus-stricken stock markets tanked following global oil price crash

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On Monday (9 March), a vicious selloff was triggered due to world oil prices crashing, which was already compounded by the fears mounting as a result of Covid-19 outbreak.

The global oil market plunged 30 per cent at one stage, resulting in stocks tanking. This is due to the main oil exporter Saudi Arabia cutting the prices to buyers after the ruckus with Russia over the production cuts of crude oil.

A seven per cent drop led to a 15-minute halt to trading early in the session, after which major US indices sank more than seven per cent. The Dow index finished at more than 2,000 points lower, which was the worst session since 2008.

In Paris, the Dax blue-chip index in Frankfurt dropped the sharpest in a single decline since 2001, whereas the CAC-40 index fell over eight per cent, making it the worst daily decline since the 2008 financial crisis.

As for Brazil, the Ibovespa index slid by more than 12 per cent.

“The markets have passed from panic mode into pure hysteria…Markets were at the breaking point before Saudi Arabia’s decision to launch an oil price war but this latest development has taken them beyond that,” said Ayush Ansal, Chief Investment Officer of Crimson Black Capital.

Following Russia’s refusal last Friday (6 March) to band together with oil producers to reduce output to defend prices, Saudi Arabia increased output supply yesterday, causing oil prices to plummet.

The price crash is the lowest since the 1991 Gulf War resulted in investors to flee for safety even as concerns thicken over the worsening situation of Covid-19, with the new development being Italy quarantining its population in the north.

Black Monday?

Analyst of Markets.com, Neil Wilson remarked that “this will be remembered as Black Monday”.

The quarantine of 16 million population that was decreed on the Italy’s northern region to curb the spread of Covid-19, including Venice and Mlilan, has sent the country’s stock market on a downward spiral.

After a volatile trading day, Milan’s FTSE MIB index closed at a value that was more than 11 per cent lower.

As the death toll from Covid-19 mounts across the world, investors are switching from riskier assets to safe haven investment. This has led to the Japanese yen and gold values appreciating while driving down US Treasury yields to record lows. Even the dollar’s value has lowered against the euro, yen, and other currencies.

The spread of Covid-19 has negatively impacted economies and fuelled fears of a global recession, even as central banks and governments all over the world release – or will release – stimulus packages to revitalise their economies.

Bourses in Asia have also not been spared. Sydney lost more than seven per cent, Tokyo sank more than five per cent, and Hong Kong plummeted more than four per cent.

In the Middle East, the Dubai, Kuwait, and Abu Dhabi exchanges also saw steep drops while Saudi Arabia equities tanked, due to the plummet of the shares of Aramco, the oil giant.

The furious wave of selling primarily hit oil majors the hardest, but other commodities firms also suffered heavy losses.

In Sydney, Woodside Petroleum and Santos sank 18.4 and 27 per cent respectively. Tokyo’s Inpex plummeted 13 per cent whereas Hong Kong-listed CNOOC and PetroChina slid 17 per cent and more than nine per cent each respectively.

In the US, Halliburton sank 37.6 per cent, Occidental Petroleum plunged 52.0 per cent, and Exxon Mobil plummeted 12.2 per cent.

Key figures around 2050 GMT:

Brent Crude: DOWN 24 per cent at US$34.36 per barrel

West Texas Intermediate: DOWN 25 per cent at US$33.13 per barrel

New York – Dow: DOWN 7.8 per cent at 23,851.02 (close)

New York – S&P 500: DOWN 7.6 per cent at 2,746.56 (close)

New York – Nasdaq: DOWN 7.3 per cent at 7,950.68 (close)

London – FTSE 100: DOWN 7.7 per cent at 5,965.77 (close)

Frankfurt – DAX 30: DOWN 7.9 per cent at 10,625.02 (close)

Paris – CAC 40: DOWN 8.4 per cent at 4,707.91 (close)

Milan – FTSE MIB: DOWN 11.2 per cent at 18,475.91 (close)

EURO STOXX 50: DOWN 8.5 per cent at 2,959.07 (close)

Tokyo – Nikkei 225: DOWN 5.1 per cent at 19,698.76 (close)

Hong Kong – Hang Seng: DOWN 4.2 per cent at 25,040.46 (close)

Shanghai – Composite: DOWN 3.0 per cent at 2,943.29 (close)

Dollar/yen: DOWN at 102.42 yen from 105.39 yen at 2200 GMT

Euro/dollar: UP at US$1.1448 from US$1.1284

Pound/dollar: UP at US$1.3112 from US$1.3048

Euro/pound: UP at 87.28 pence from 86.48 pence

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TJC issued 3rd POFMA order under Minister K Shanmugam for alleged falsehoods

The Transformative Justice Collective (TJC) was issued its third POFMA correction order on 5 October 2024 under the direction of Minister K Shanmugam for alleged falsehoods about death penalty processes. TJC has rejected the government’s claims, describing POFMA as a tool to suppress dissent.

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The Transformative Justice Collective (TJC), an advocacy group opposed to the death penalty, was issued its third Protection from Online Falsehoods and Manipulation Act (POFMA) correction direction on 5 October 2024.

The correction was ordered by Minister for Home Affairs and Law, K Shanmugam, following TJC’s publication of what the Ministry of Home Affairs (MHA) alleges to be false information regarding Singapore’s death row procedures and the prosecution of drug trafficking cases.

These statements were made on TJC’s website and across its social media platforms, including Facebook, Instagram, TikTok, and X (formerly Twitter).

In addition to TJC, civil activist Kokila Annamalai was also issued a correction direction by the minister over posts she made on Facebook and X between 4 and 5 October 2024.

According to MHA, these posts echoed similar views on the death penalty and the legal procedures for drug-related offences, and contained statements that the ministry claims are false concerning the treatment of death row prisoners and the state’s legal responsibilities in drug trafficking cases.

MHA stated that the posts suggested the government schedules and stays executions arbitrarily, without due regard to legal processes, and that the state does not bear the burden of proving drug trafficking charges.

However, these alleged falsehoods are contested by MHA, which maintains that the government strictly follows legal procedures, scheduling executions only after all legal avenues have been exhausted, and that the state always carries the burden of proof in such cases.

In its official release, MHA emphasised, “The prosecution always bears the legal burden of proving its case beyond a reasonable doubt, and this applies to all criminal offences, including drug trafficking.”

It also pointed to an article on the government fact-checking site Factually to provide further clarification on the issues raised.

As a result of these allegations, both TJC and Annamalai are now required to post correction notices. TJC must display these corrections on its website and social media platforms, while Annamalai is required to carry similar notices on her Facebook and X posts.

TikTok has also been issued a targeted correction direction, requiring the platform to communicate the correction to all Singapore-based users who viewed the related TJC post.

In a statement following the issuance of the correction direction, TJC strongly rejected the government’s claims. The group criticised the POFMA law, calling it a “political weapon used to crush dissent,” and argued that the order was more about the exercise of state power than the pursuit of truth. “We have put up the Correction Directions not because we accept any of what the government asserts, but because of the grossly unjust terms of the POFMA law,” TJC stated.

TJC further argued that the government’s control over Singapore’s media landscape enables it to push pro-death penalty views without opposition. The group also stated that it would not engage in prolonged legal battles over the POFMA correction orders, opting to focus on its abolitionist work instead.

This marks the third time TJC has been subject to a POFMA correction direction in recent months.

The group was previously issued two orders in August 2024 for making similar statements concerning death row prisoners.

In its latest statement, MHA noted that despite being corrected previously, TJC had repeated what the ministry views as falsehoods.

MHA also criticised TJC for presenting the perspective of a convicted drug trafficker without acknowledging the harm caused to victims of drug abuse.

Annamalai, a prominent civil rights activist, is also known for her involvement in various social justice campaigns. She was charged in June 2024 for her participation in a pro-Palestinian procession near the Istana. Her posts, now subject to correction, contained information similar to those presented by TJC regarding death penalty procedures and drug-related cases.

POFMA, which was introduced in 2019, allows the government to issue correction directions when it deems falsehoods are being spread online.

Critics of the law argue that it can be used to suppress dissent, while the government asserts that it is a necessary tool for combating misinformation. The law has been frequently invoked against opposition politicians and activists.

As of October 2024, Minister K Shanmugam has issued 17 POFMA directions, more than any other minister. Shanmugam, who was instrumental in introducing POFMA, is followed by National Development Minister Desmond Lee, who has issued 10 POFMA directions.

Major media outlets, including The Straits Times, Channel News Asia, and Mothership, have covered the POFMA directions. However, as of the time of writing, none have included TJC’s response rejecting the government’s allegations.

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Hotel Properties Limited suspends trading ahead of Ong Beng Seng’s court hearing

Hotel Properties Limited (HPL), co-founded by Mr Ong Beng Seng, has halted trading ahead of his court appearance today (4 October). The announcement was made by HPL’s company secretary at about 7.45am, citing a pending release of an announcement. Mr Ong faces one charge of abetting a public servant in obtaining gifts and another charge of obstruction of justice. He is due in court at 2.30pm.

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SINGAPORE: Hotel Properties Limited (HPL), the property and hotel developer co-founded by Mr Ong Beng Seng, has requested a trading halt ahead of the Singapore tycoon’s scheduled court appearance today (4 October) afternoon.

This announcement was made by HPL’s company secretary at approximately 7.45am, stating that the halt was due to a pending release of an announcement.

Mr Ong, who serves as HPL’s managing director and controlling shareholder, faces one charge under Section 165, accused of abetting a public servant in obtaining gifts, as well as one charge of obstruction of justice.

He is set to appear in court at 2.30pm on 4 October.

Ong’s charges stem from his involvement in a high-profile corruption case linked to former Singaporean transport minister S Iswaran.

The 80-year-old businessman was named in Iswaran’s initial graft charges earlier this year.

These charges alleged that Iswaran had corruptly received valuable gifts from Ong, including tickets to the 2022 Singapore Formula 1 Grand Prix, flights, and a hotel stay in Doha.

These gifts were allegedly provided to advance Ong’s business interests, particularly in securing contracts with the Singapore Tourism Board for the Singapore GP and the ABBA Voyage virtual concert.

Although Iswaran no longer faces the original corruption charges, the prosecution amended them to lesser charges under Section 165.

Iswaran pleaded guilty on 24 September, 2024, to four counts under this section, which covered over S$400,000 worth of gifts, including flight tickets, sports event access, and luxury items like whisky and wines.

Additionally, he faced one count of obstructing justice for repaying Ong for a Doha-Singapore flight shortly before the Corrupt Practices Investigation Bureau (CPIB) became involved.

On 3 October, Iswaran was sentenced to one year in jail by presiding judge Justice Vincent Hoong.

The prosecution had sought a sentence of six to seven months for all charges, while the defence had asked for a significantly reduced sentence of no more than eight weeks.

Ong, a Malaysian national based in Singapore, was arrested by CPIB in July 2023 and released on bail shortly thereafter. Although no charges were initially filed against him, Ong’s involvement in the case intensified following Iswaran’s guilty plea.

The Attorney-General’s Chambers (AGC) had earlier indicated that it would soon make a decision regarding Ong’s legal standing, which has now led to the current charges.

According to the statement of facts read during Iswaran’s conviction, Ong’s case came to light as part of a broader investigation into his associates, which revealed Iswaran’s use of Ong’s private jet for a flight from Singapore to Doha in December 2022.

CPIB investigators uncovered the flight manifest and seized the document.

Upon learning that the flight records had been obtained, Ong contacted Iswaran, advising him to arrange for Singapore GP to bill him for the flight.

Iswaran subsequently paid Singapore GP S$5,700 for the Doha-Singapore business class flight in May 2023, forming the basis of his obstruction of justice charge.

Mr Ong is recognised as the figure who brought Formula One to Singapore in 2008, marking the first night race in the sport’s history.

He holds the rights to the Singapore Grand Prix. Iswaran was the chairman of the F1 steering committee and acted as the chief negotiator with Singapore GP on business matters concerning the race.

 

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