SG Morning Call | STI Falls 0.4%; AEM SGD Fall over 3%; UMS, UOB, Frencken Fall Around 2%; First Resources, PanUnited, IFast, ST Engineering Fall About 1%
Market Snapshot
Singapore stocks opened lower on Friday. STI fell 0.4%; AEM SGD fell over 3%; UMS, UOB, Frencken fell around 2%; First Resources, PanUnited, iFast, ST Engineering fell about 1%.
Stocks in Focus
$Geo Energy Resources(RE4.SI)$: The Indonesian coal producer said in a bourse filing on Thursday that its newly operational Marga Bara Jaya integrated infrastructure unit could add up to about US$350 million in annual earnings before interest, taxes, depreciation and amortisation over time. The project marks a new source of earnings for the group beyond coal mining, said the company.
SG Local News
Singapore's Key Exports Rise 20.7% in June, Missing Forecasts Despite AI-Led Electronics Boom
The Republic’s non-oil domestic exports (NODX) rose 20.7 per cent year on year in June, moderating from the 38.4 per cent rise in May, data from Enterprise Singapore (EnterpriseSG) showed on Friday (Jul 17).
It also fell short of private-sector economists’ median forecast of 28.7 per cent year-on-year growth, a Bloomberg poll showed.
Nevertheless, electronics NODX surged 105.1 per cent in June, up from 94.8 per cent growth in May, supported by robust AI-related demand.
Disk media products (170.9 per cent), integrated circuits (115.4 per cent), and PCs (95.8 per cent) contributed the most to the expansion.
Macquarie Upgrades STI 12-Month Target to 6,000
Macquarie upgraded its 12-month target for Singapore’s benchmark Straits Times Index (STI) to 6,000, pointing to a “healthy cocktail” of macroeconomic tailwinds, rising domestic interest rates and supportive government market initiatives.
In a Wednesday (Jul 15) note, the financial services firm said the new target implies a 14 per cent total market return from the index level of 5,470 as at the time of the report, when factoring in the STI’s 4.1 per cent forward dividend yield.
If the index reaches 6,000, stocks would once again offer the same typical income advantage over 10-year Singapore government bonds that investors have seen over the long run – about 1.74 percentage points.
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