Friday, July 29, 2011

Jul 29: Singapore stocks may start weak on US debt woes; SIA in focus

Singapore shares may start weak on Friday as investors remain cautious amid increasing skepticism that the US will come to an agreement over its debt ceiling and avert a credit rating downgrade. Singapore’s benchmark Straits Times Index <.FTSTI> fell 0.12% on Thursday to 3,189.85 points. Here are some stocks and factors to watch:

Singapore Airlines (SIAL.SI) may be in focus after it said on Thursday it faced significant challenges as soaring jet fuel prices slashed first quarter profit by a worse-than-expected 82% from a year ago and economic uncertainties plagued key markets.

Midas Holdings (MIDA.SI) , which makes aluminium components used in trains, said on Thursday it had secured two contracts worth a total of 3.13 billion yuan ($585 million) to supply train cars in China.

Rubber firm GMG Global (GMGG.SI) said its second quarter net profit jumped 89.6% to $18 million, up from $9.5 million a year ago, helped by a higher average selling price of rubber and a net one-off gain from the waiver of a loan.

Property developer Hongkong Land (HKLD.SI) said its net profit in the first half of the year more than doubled to US$3.8 billion ($4.6 billion) from US$1.6 billion a year ago, helped by a higher revaluation gain.

Offshore marine services firm Otto Marine (OTTO.SI) said on Thursday it expects to report a loss for the second quarter compared to a profit in the year-ago period, due partly to the cancellation of a contract for two vessels.

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