Singapore shares up again, lifted by retail sales growth; STI rises 0.3%
SINGAPORE - The Straits Times Index (STI) settled higher on Aug 5 for the second consecutive session, supported by stronger-than-expected retail sales figures for June.
Retail sales rose 2.3 per cent year-on-year that month, indicated data released by the Department of Statistics. The growth was broad-based across industries and exceeded the median estimate of 2 per cent by private-sector economists polled by Bloomberg.
The STI closed up 0.3 per cent or 11.35 points at 4,208.58. Across the broader market, advancers outnumbered decliners 297 to 218, after 1.6 billion shares worth $1.4 billion changed hands.
The biggest gainer on the index was Thai Beverage, rising 2.2 per cent or one cent to 47 cents.
At the bottom of the index was CapitaLand Ascendas Reit, which fell 1.8 per cent or five cents to $2.75. The decline followed the real estate investment trust's announcement of a 2 per cent year-on-year decrease in H1 revenue, which fell to $754.8 million.
This was primarily due to the divestment of five properties across Australia, Singapore and the US, as well as the planned decommissioning of a UK property slated for redevelopment in June 2024.
The trio of local banks ended the day mixed, with DBS Bank rising 0.7 per cent or 35 cents to $48.24 and OCBC Bank gaining 0.5 per cent or eight cents to $16.98. However, UOB finished flat at $36.37.
Top stories
Swipe. Select. Stay informed.
Singapore 'She had a whole life ahead of her': Boyfriend mourns Yishun fatal crash victim
Singapore Beauty industry consumers hit by 464% rise in prepayment losses in first half of 2025
Singapore Doctor hounds ex-girlfriend, threatens to share her intimate photos, abducts her from public street
Singapore 13 taken to hospital after accident involving SBS buses, car in Tampines
Singapore New cargo handling centre at Changi Airport reduces processing time; test bed for future T5 ops
Singapore 60 lactation pods to be set up in public spaces by Q1 2026 for breastfeeding mothers
Life Urinary issues: Enlarged prostate affects half of men in their 50s and up
Singapore Elderly man charged after he allegedly molested, performed sex act on 'vulnerable' man
OCBC chief economist Selena Ling noted that the recently released retail sales figure fell short of her forecasted 2.7 per cent growth. She attributed the softer momentum to the June school holidays, when many Singaporean families travelled overseas to 'take advantage of improved purchasing power' with the Singapore dollar's strength.
Looking ahead, she cautioned that input cost inflation in Singapore has reached a six-month high while selling prices remain largely unchanged.
'The latter suggests that margin erosion could be a theme to watch for the months ahead, particularly when reciprocal tariffs kick in and there could be reverberations through the global supply chains, since competitive pressures may be limiting the corporates' ability to pass on rising costs during a period when demand conditions is softening,' Ms Ling added.
Meanwhile, across the region, major indexes closed higher. The Kospi rose 1.6 per cent and the Nikkei 225 added 0.6 per cent.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
8 minutes ago
- Straits Times
Asian container liners set for profit drop as tariff truce ends
Sign up now: Get ST's newsletters delivered to your inbox A sharp drop in shipping rates could be on the cards later in 2025 as US tariffs kick in. Hong Kong - Asian container liners' profits might have just peaked. A sharp drop in shipping rates could be on the cards later in 2025 after tariff-driven demand in the second quarter pulled forward volumes from the traditional third-quarter peak season. Transpacific trade picked up during the US-China tariff truce with freight prices up sharply in June. As capacity recovered, smaller players like China United Lines even started resumed transpacific services after a period of absence. 'Container volume data seems to suggest that Chinese liners saw the greatest increase in demand during the tariff truce, compared to peers in Japan and South Korea, which suggests the former could potentially see a more robust quarter,' said Bloomberg Intelligence analyst Kenneth Loh. The rest of the year could be dampened by weaker trade growth as sentiment remains soft, while volumes brought forward could trigger deeper rate corrections, said Philip Damas, managing director and head of Supply Chain Advisors at Drewry Group. Earnings from Japanese liners are showing the peak might be over, with Mitsui OSK Lines failing to impress investors as US tariff threats impacted its container shipping business, and Nippon Yusen KK cutting full-year guidance on currency fluctuations and tariff turmoil. Chinese peers, meanwhile, might get one last cheer before a harsher reality sets in, as front-loading and strong exports in the first half could boost the likes of Cosco Shipping Holdings. But signs of slowing trade in China after record-breaking volumes signal the front-loading boost could start to peter out. A tariff reprieve merely postpones demand headwinds, HSBC analysts including Parash Jain wrote in a mid-July note. 'Even worse, the accelerated vessel delivery schedule will collide with potentially weakening demand, exacerbating overcapacity.' From the third quarter on, transpacific container traffic is set to decline with only a slight seasonal uptick seen in the second quarter of 2026, said Mr Damas. 'The container shipping market is fundamentally in a cyclical downturn, with temporary rate spikes driven only by disruptive shocks rather than demand-side strength.' Beyond mainland China and Japan, Taiwan's Evergreen Marine and Yang Ming Marine Transport could see full-year earnings fall by more than half as trade uncertainties weigh. In Europe, AP Moller-Maersk and Hapag-Lloyd are also expected to see a continued slowdown. US-China trade talks are progressing with US President Donald Trump set to make the final call on maintaining a tariff truce with China. But even tariffs considered favourable could still weigh on rates and volumes, said Mr Damas, noting the revised 15 per cent tariff on Japan is still higher than a year ago and is likely to reduce Japanese containerised exports to the United States overall. 'For China, it is too early to say how adverse the impact of revised tariffs will be on container lines' according to Mr Damas. 'There are signs that China exports to regions other than the US are growing fast.' China's trade surplus reached record levels in the first six months of the year, as the country sought to diversity exports away from the US and tapped South-east Asia. Somewhat shielded from tariff rumblings, more high-growth markets such as intra-Asia trade lanes are displacing the transpacific in terms of global importance amid such uncertainties, according to BI's Mr Loh. Since this March, China-Asean export volumes are now double that of China-US, traditionally the most important route in container shipping. Drewry's Mr Damas is also seeing container lines shift China-built ships from US-connected routes to non-US routes, likely to avoid levies due to be imposed by the US administration from October. 'We expect that container lines will cancel many more sailings, increase demolitions of ships and take other measures to manage over-supply in the second half of this year,' he said. BLOOMBERG
Straits Times
8 minutes ago
- Straits Times
Meta says working to thwart WhatsApp scammers
Sign up now: Get ST's newsletters delivered to your inbox Often run by organised gangs, the scams range from bogus cryptocurrency investments to get-rich-quick pyramid schemes. SAN FRANCISCO, United States - Meta on Aug 5 said it shut nearly seven million WhatsApp accounts linked to scammers in the first half of this year and is ramping up safeguards against such schemes. 'Our team identified the accounts and disabled them before the criminal organisations that created them could use them,' WhatsApp external affairs director Clair Deevy said. Often run by organised gangs, the scams range from bogus cryptocurrency investments to get-rich-quick pyramid schemes, WhatsApp executives said in a briefing. 'There is always a catch and it should be a red flag for everyone: you have to pay upfront to get promised returns or earnings,' Meta-owned WhatsApp said in a blog post. WhatsApp detected and banned more than 6.8 million accounts linked to scam centers, most of them in South-east Asia , according to Meta. WhatsApp and Meta worked with OpenAI to disrupt a scam traced to Cambodia that used ChatGPT to generate text messages containing a link to a WhatsApp chat to hook victims, according to the tech firms. Meta on Aug 5 began prompting WhatsApp users to be wary when added to unfamiliar chat groups by people they do not know. New 'safety overviews' provide information about the group and tips on spotting scams, along with the option of making a quick exit. 'We've all been there: someone you don't know attempting to message you, or add you to a group chat, promising low-risk investment opportunities or easy money, or saying you have an unpaid bill that's overdue,' Meta said in a blog post. 'The reality is, these are often scammers trying to prey on people's kindness, trust and willingness to help – or, their fears that they could be in trouble if they don't send money fast.' AFP
Straits Times
17 minutes ago
- Straits Times
US says it has started seabed mineral talks with the Cook Islands
Sign up now: Get ST's newsletters delivered to your inbox Polymetallic nodules encrusted with coveted metals like cobalt, nickel and manganese seen onboard the research vessel MV Anuanua Moana in Rarotonga, Cook Islands. WASHINGTON - The US has begun talks with the Cook Islands for research on seabed minerals exploration and development, the State Department said on Aug 5. The Cook Islands, which had a population of 15,040 in 2021, lie halfway between New Zealand and Hawaii and are made up of 15 islands and atolls. Western nations that traditionally held sway in the region have become increasingly concerned about China's plans to increase influence after Beijing signed defense, trade and financial deals with Pacific countries in recent years. Earlier this year, China and the Cook Islands signed a strategic partnership deal, which spans areas from deep-sea mining to education scholarships but excluded security ties. "The Government of the United States of America has begun discussions with the Government of the Cook Islands to support the research necessary to inform seabed exploration and responsible development within the Cook Islands' Exclusive Economic Zone," the US Statement Department said in a statement. US-linked firms "sit at the forefront" of deep seabed mineral research and exploration in the Cook Islands, it said. The Cook Islands was within the New Zealand borders from 1901. In 1965, it became self governing but in free association with New Zealand. Top stories Swipe. Select. Stay informed. Singapore Morning commute disrupted as delays on East-West MRT Line persist after more than 3 hours Singapore Hidden vapes and where to find them: Inside ICA's clampdown at land checkpoints Singapore Sorting recyclables by material could boost low domestic recycling rate: Observers Singapore SM Lee receives Australia's highest civilian honour for advancing bilateral ties Asia Trump's sharp India criticism corners Modi as rift deepens Singapore More train rides taken in first half-year, but overall public transport use stays below 2019 levels Singapore BlueSG needs time to develop software, refresh fleet, say ex-insiders after winding-down news Asia Cambodia-Thailand border clash a setback for Asean: Vivian Balakrishnan It has its own government, and King Charles III is its head of state. Cook Islanders have New Zealand citizenship and passports. They have the same rights as a New Zealander such as the ability to work, go to school and use the medical system. In June, New Zealand suspended millions of dollars in budget funding to the Cook Islands as the relationship continued to deteriorate amid the island group's deepening ties with China. REUTERS
