Latest news with #VasuMenon
CNA
4 days ago
- Business
- CNA
CNA938 Rewind - Stock take today: Tech is back, bullish EM currencies, US week ahead
CNA938 Rewind On the daily markets analysis on Open For Business, Andrea Heng and Susan Ng speak with Vasu Menon, Managing Director, Investment Strategy, Wealth Management Singapore, OCBC Bank.
Straits Times
19-05-2025
- Business
- Straits Times
Singapore shares close lower, weighed down by US credit rating downgrade
SINGAPORE - Singapore shares closed the first trading day of the week lower, as with most of the regional major indexes, as United States equity and bond futures slid in early Asia trading after the American government got its top credit rating downgraded a notch. Singapore's blue-chip barometer Straits Times Index (STI) dipped 0.6 per cent or 21.67 points to 3,876.2 points. Regional indexes were largely down – the Shanghai Composite Index was spared the rout with a flat performance, while the FTSE Bursa Malaysia KLCI closed 1 per cent down. Gainers trailed decliners 212 to 298 across the broader market in Singapore, with 1.21 billion securities valued at $1.15 billion having transacted. Moody's Ratings announced on May 16 evening that it was dropping the US' credit rating to Aa1 from Aaa, due to the world's largest economy's ballooning budget deficit and elevated debt level. Mr Vasu Menon, managing director for investment strategy at OCBC Bank , said past rating downgrades by credit agencies had a near-term impact on the markets, but no lasting consequences unless US Treasury yields rose sharply. Concurring, Mr Vishnu Varathan, head of macro research for Asia ex-Japan at Mizuho Securities (Singapore), noted the downgrade did not reveal anything new about mounting US credit and fiscal woes. Hence, while the resultant jolt may clip already tentative market optimism or buoyancy, it is unlikely to crush the broader recovery. 'Not on account of Moody's downgrade trigger, in any case,' he added. Frasers Logistics & Commercial Trust (FLCT) closed at $0.795 after the real estate investment trust went ex-dividend on May 19, 4.8 per cent or $0.04 lower – the absolute drop exceeding the $0.03 in distribution per unit it is giving out for the period of October 2024 to March 2025. At this price, it is within a whisker of hitting its 52-week low of $0.79. DBS Bank also went ex-dividend, closing at $44.30, dipping $0.30 or 0.7 per cent, but the absolute decline was smaller than the $0.75 per share in dividend it is paying out. Closing lower as well were UOB, which slid $0.20 or 0.6 per cent to $35.30, and OCBC, which fell $0.09 or 0.6 per cent to $16.23. THE BUSINESS TIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
19-05-2025
- Business
- Business Times
STI slips 0.6%, weighed down by US credit rating downgrade
[SINGAPORE] Singapore shares closed the first trading day of the week lower, as with most of the regional major indexes, as United States equity and bond futures slid in early Asia trading after the American government got its top credit rating downgraded a notch. Singapore's blue-chip barometer Straits Times Index (STI) dipped 0.6 per cent or 21.67 points to 3,876.2 points. Regional indexes were largely down – the Shanghai Composite Index was spared the rout with a flat performance, while the FTSE Bursa Malaysia KLCI closed 1 per cent down. Gainers trailed decliners 212 to 298 across the broader market in Singapore, with 1.2 billion of securities valued at S$1.2 billion having transacted. Moody's Ratings announced on Friday (May 16) evening that it was dropping the US' credit rating to Aa1 from Aaa, due to the world's largest economy's ballooning budget deficit and elevated debt level. Vasu Menon, managing director for investment strategy at OCBC, said rating downgrades by credit agencies in the past had a near-term impact on the markets, but no lasting consequences unless US Treasury yields rose sharply. Concurring, Vishnu Varathan, head of macro research for Asia ex-Japan at Mizuho Securities (Singapore), pointed out that the downgrade did not reveal anything new about mounting US credit and fiscal woes. Hence, while the resultant jolt may clip already tentative market optimism or buoyancy, it is unlikely to crush the broader recovery. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'Not on account of Moody's downgrade trigger, in any case,' he added. Frasers Logistics & Commercial Trust (FLCT) closed at S$0.795 after the real estate investment trust went ex-dividend on Monday, 4.8 per cent or $0.04 lower – the absolute drop exceeding the S$0.03 in distribution per unit it is giving out for the period of October 2024 to March 2025. At this price, it is within a whisker of hitting its 52-week low of S$0.79. DBS also went ex-dividend, closing at S$44.30, dipping S$0.30 or 0.7 per cent, but the absolute decline was smaller than the S$0.75 per share in dividend it is paying out. Closing lower as well were UOB and OCBC , which respectively slid S$0.20 or 0.6 per cent to S$35.30, and S$0.09 or 0.6 per cent to S$16.23.
Independent Singapore
19-05-2025
- Business
- Independent Singapore
At least 5 Chinese firms eye SGX to expand in Southeast Asia as trade tensions drag on
SINGAPORE: Over the next 12 to 18 months, at least five firms from mainland China and Hong Kong are eyeing the Singapore Exchange (SGX) for initial public offerings (IPOs), dual listings, or share placements, according to four sources, as Chinese companies look to grow their presence in Southeast Asia amid ongoing global trade tensions. Sources said a Chinese energy firm, a healthcare group, and a biotech group based in Shanghai are among those eyeing an expansion in the city-state; however, they did not name the companies as the plans are still in the early stages, Reuters reported. The potential listings are expected to help SGX, which has been trying to attract mega listings and raise its trading activity. In 2024, SGX hosted only four IPOs, while rival Hong Kong Stock Exchange saw 71 new listings. In April 2024, Vasu Menon, OCBC's managing director of investment strategy, said SGX would need to work harder and think of innovative ways to attract good IPOs . IPO activity had slowed over the past two years due to aggressive interest rate hikes by central banks. While signs of recovery were starting to show, uncertainty still hung over the IPO market. See also British are going to pay dearly for one day of fun Jason Saw, head of CGS International Securities' investment banking group, said Chinese companies are now looking to tap into Singapore as they expand their business in Southeast Asia amid the trade war with the U.S. Earlier, the U.S. raised tariffs on Chinese goods to 145%, and China responded with tariffs of 125% on U.S. goods. While both sides agreed to a 90-day pause, uncertainty remains, especially with the unpredictable policies from the Trump administration. Mr Saw said listing enquiries on SGX 'shot through the roof' since the latest U.S. tariff moves against China. Pol de Win, senior managing director and head of global sales and origination at SGX, said gateways connecting China to the rest of the world will matter even more in the years ahead. He said, 'Singapore is an important gateway, whether it's trade (or) business activity from China to the outside world, and a listing in Singapore is an important part of that,' although he did not comment on the listing plans involving the Chinese and Hong Kong firms. Mr Saw said CGS International, a unit of China Galaxy Securities, is now working with at least two Chinese companies that may list in Singapore as early as this year. Still, it did not mention the company names. One source said some of the firms could raise about US$100 million through primary listings in the city-state. While Hong Kong remains the top choice for most Chinese firms listing offshore, some are now showing more interest in SGX as Beijing works to deepen ties with Southeast Asia, according to capital market advisers. To strengthen its equities market, the Singapore government announced a 20% corporate tax rebate for primary listings, a 10% rebate for secondary listings, and a S$5 billion market development program . These measures resulted in a notable uptick in IPO enquiries , said Ooi Chee Keong, a partner at Forvis Mazars, in March. Additional support measures will be introduced in the second half of 2025 . Ringo Choi, EY's Asia Pacific IPO Leader, said Singapore's political stability and neutral stance on global issues make it attractive to companies. Still, few expect Singapore to catch up to Hong Kong in equity listings anytime soon because of its more cautious investor base and stricter listing requirements. A managing director at a Singapore-based multinational software company told Reuters that Singapore needs to make it easier for companies, especially tech firms, to list. He said most startups in the region are based in Singapore, so it should be the place they list. /TISG Read also: Regional and domestically exposed sectors replace US export-oriented stocks in RHB's Top 20 Small Cap Jewels 2025 Featured image by Depositphotos (for illustration purposes only)
CNBC
19-05-2025
- Business
- CNBC
Asia-Pacific markets set to trade mixed as investors parse Moody's U.S. downgrade
Futures for Hong Kong's Hang Seng index stood at 23,270, lower than its last close of 23,345.05. Australia's benchmark S&P/ASX 200 is set to rise marginally, with futures standing at 8,360, higher than the index's last close of 8,343.7. Japan's benchmark Nikkei 225 is set to open mixed, with the futures contract in Chicago at 37,730 while its counterpart in Osaka last traded at 37,800, against the index's last close of 37,753.72. Asia-Pacific markets are set to trade mixed Monday as investors await a slew of economic data from across the region and parse Moody's downgrade of the U.S. credit rating. China is scheduled to release a slate of economic data for April, including housing prices and industrial production. Thailand is set to report its first-quarter GDP later in the day. The Reserve Bank of Australia will also kickstart its two-day meeting. On Friday, Moody's Ratings downgraded the U.S. sovereign credit rating by one level from Aaa to Aa1, citing mounting challenges in funding the federal budget deficit and the increasing cost of refinancing debt in a high-interest-rate environment. With this downgrade, Moody's has joined the ranks of other major rating agencies. S&P made the first move in 2011, and Fitch followed suit in 2023, both reducing the U.S. rating to AA+. Moody's latest rating downgrade on its own may not cause a big sell-off in U.S. stock and bond markets as seen from the 2011 and 2023 rating downgrades, Vasu Menon, OCBC's managing director of the investment strategy team said in a note. "It does however reinforce concerns about the growing U.S. budget deficit and debt, but these are not new and have been discussed extensively for the past few months, and even years," he noted. U.S. stock futures declined after the S&P 500 posted a four-day rally on the back of U.S. and China's temporary tariff cuts and encouraging inflation reports. Futures tied to the Dow Jones Industrial Average dropped 292 points points, or 0.7%. S&P 500 futures slipped 0.7%, while Nasdaq 100 futures fell 0.8%. Overnight stateside on Friday the three major averages closed mixed. The S&P 500 rose for a fifth session and posted a sharp weekly gain, as investors looked past the release of disappointing consumer sentiment data and persisting inflation worry. The broad market index climbed 0.70% to end at 5,958.38, while the Nasdaq Composite gained 0.52% to close at 19,211.10. The Dow Jones Industrial Average gained 331.99 points, or 0.78%, settling at 42,654.74. Friday's advance put the 30-stock benchmark into positive territory for 2025. — CNBC's Brian Evans, Pia Singh and Tanaya Macheel contributed to this report.
