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

Market performance.

Singapore Stock Market opened higher on Monday. As of 9:45 AM. The weather is good today The weather is good today. The index rose by 0.28% to 3397.54 points, with 101 stocks rising and 50 falling.

Market news.

Affected by regional economic decline, Singapore's merger and acquisition activities decreased by 23.7%.

A report from GlobalData shows that Singapore's M&A transaction volume decreased by 23.7%, reflecting a common trend of reduced transaction volume in the entire Asia Pacific region, with an overall decrease of 9.9% in transaction volume in the region. From January to July 2024, the transaction volumes in several Asia Pacific countries, including China, Australia, South Korea, Malaysia, Hong Kong, and Indonesia, saw significant year-on-year decreases. In contrast, the transaction volumes in India, Japan, and Thailand increased. The performance of the Asia Pacific region outperformed other regions, with greater declines in North America, Europe, the Middle East and Africa, as well as South and Central America. Aurojyoti Bose, analyst at GlobalData, pointed out that although the transaction volumes in most Asia Pacific markets have decreased, the growth in some markets has mitigated the overall impact.

The dining industry in Singapore is facing difficulties due to competition exceeding customer growth.

Singapore's dining industry is facing a profit crisis as the number of new businesses exceeds the growth of the customer base composed of tourists and locals. Despite an increase in the number of dining establishments since 2014, the industry's tourist numbers or local population growth have not correspondingly increased after the pandemic. Tourism revenue in the fourth quarter of 2023 was still 2% lower than in the fourth quarter of 2019, and tourist numbers in the second quarter of 2024 remained below the 2019 levels. Inflation has pushed up dining expenses for tourists, but this does not reflect actual consumption growth.

Analysts at First Pacific Davis Research and Consulting emphasized that the profit margins of dining operators are under pressure and stated that the retail and dining industry has not yet fully recovered to pre-pandemic levels. They recommend thorough due diligence for new entrants, including understanding customer traffic and market competition, evaluating sustainability, calculating staffing and breakeven costs, and utilizing technology and online platforms to facilitate business development.

Focus stocks

$Shangri-La HKD (S07.SG)$: Shangri-La Asia's net income for the first half of the year ending June 30 decreased significantly by 283.1%, with profits plunging from $0.1314 billion to $94.5 million. The significant decline in net income is mainly due to continuously rising operating costs and a decrease in non-operating project income compared to the previous year. Despite the decline in profitability, the stock price of the hotel group remains unchanged and closed at HKD 4.95 before the financial performance announcement. The decline reflects the challenges faced by the hotel industry in maintaining profitability while managing costs.

$Sembcorp Ind (U96.SG)$: Sembcorp Industries' Mee Khanh power plant in Mandalay, Myanmar, was temporarily shut down due to local conflicts and has now resumed operations. The power plant has recommenced operations after a safety assessment and coordination with the Myanmar Electric Power Generation Enterprise. Sembcorp Industries is closely monitoring the situation and prioritizing the safety of its employees. The temporary shutdown did not have a significant impact on the company's financial performance for this year.

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

Editor/Feynman