Good morning, everyone! Here is the market overview of Singapore this morning:

Market performance.

Singapore's stock market opened higher on Thursday. As of 9:45am, the FTSE Straits Times Index rose by 0.67% to 3,308.28 points, with 76 stocks rising and 65 falling.

Market news.

Singapore's manufacturing and trading industries are expected to drive economic growth in the second half of 2024.

RHB expects that Singapore's economic growth in the second half of 2024 will be driven by the manufacturing and trading industries, especially in the fields of electronics, precision engineering, and transportation engineering. These industries may benefit from the increasing demand for electrical and electronic (E&E) goods and trade activities worldwide. RHB expects that the improvement of global environment will promote Singapore's industrial production growth. Nomura Securities also predicts that output from the manufacturing sector, spurred by global technology recovery and increased pharmaceutical capacity, would see a substantial increase, supporting broader GDP growth including the services sector. However, UOB warned that the high interest rates in the US and EU may dampen the recovery of export-oriented industries such as manufacturing, but stated that if major central banks lower policy rates, there could be a stronger recovery in Q4 2024, which could stimulate overseas investment and consumption.

Focus stocks

$Singtel (Z74.SG)$Singtel (Z74) reported a sharp increase of 42.9% in net income in the first quarter ended 30 June, reaching SGD 0.69 billion, higher than last year's SGD 0.483 billion. This significant increase was mainly attributed to the net special gains of SGD 88 million, which sharply contrasted with the net special losses in the same period last year. This gain was mainly derived from the dilution of Singtel's equity stake in the joint venture Airtel, transaction gains with regional joint venture company Globe, and the special net gain of Airtel itself. Despite the increase in net finance expenses and the decrease in profit share of joint venture companies such as Airtel and Telkomsel, Singtel's basic net income still grew by 5.4% to SGD 0.603 billion. Although the company's revenue also declined slightly due to the sale of Trustwave, CEO Yuen Kuan Moon expressed optimism about growth opportunities, stating that the company has a strong position and can capture market potential.

$Genting Sing (G13.SG)$Genting Singapore announced a strong growth in earnings for the first half of 2024, up 29% to USD 0.357 billion, and revenue up 25% to USD 1.35 billion, thanks to the strong performance of its gaming and non-gaming businesses. Although the company faces challenges in the second quarter of the 2024 fiscal year due to geopolitical tensions and rising costs, it remains optimistic about the second half of the year and plans to introduce new intellectual property partnerships at Sentosa Integrated Resort and advance its RWS 2.0 expansion plan, which will enrich the visitor experience with new attractions launching by early 2025.

$ComfortDelGro (C52.SG)$ComfortDelGro Group announced a 21.4% year-on-year increase in profit for the first half of 2024, reaching SGD 95.3 million, marking the fifth consecutive quarter of growth. Revenue rose 13.7% to SGD 2.12 billion, driven by a 44.6% increase in operating profit from the taxi and private rental sector and a 5.6% growth in public transport sector. Overseas revenue also increased, accounting for 46.3% of total revenue. It announced a dividend payout of SGD 3.52 per share, up from last year's SGD 2.90, reflecting an 80% payout ratio. The company attributed its strong performance to its strategic focus on core businesses and international expansion, as well as effective capital management to achieve long-term sustainability and shareholder value.

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Source: The Business Times, SGinvestors.io, Business Review

Editor/Feynman