SGX Stock Recommendations

MARKET UPDATES :

• WORKER layoffs in Singapore jumped to 3,500 in the third quarter from 2,410 in the second quarter as companies continued to restructure, according to the Ministry of Manpower’s latest Labour Market Report. But the jobless were quicker in finding another job as the rate of re-entry into employment within six months of redundancy improved for a second straight quarter.

• Oil prices sank to a fresh five-year low in Asia on Monday after a top OPEC official said the relentless plunge was not just because of a global supply glut. US benchmark West Texas Intermediate for January delivery fell 25 cents to US$57.56 while Brent crude for January was down one cent to US$61.84 in mid-morning trade. Most oil market observers attribute the price slump to a supply glut – spurred by rising US shale oil production.

• Singapore’s non-oil domestic exports probably grew in November from a year earlier, when sales of pharmaceuticals were poor, with the comparison against a low base helping shipments recover from October’s contraction. The median forecast in a Reuters poll of 10 economists was for a 3.7 per cent rise in exports in November from a year earlier. In October, there was a 1.5 per cent annual contraction.

• CapitaLand – “One CapitaLand” Strategy To Bear Fruit-:The streamlining of operations post CMA’s privatisation would help enhance CapitaLand’s competitive strengths in integrated developments, and thus narrow holding company discounts. CapitaLand is on track to deliver ROE target of 8-12% in the next 3-5 years.

Forex Market Update

The dollar rose to new record highs against the ruble Monday, as unraveling oil prices were compounded by fears that some of Russia’s largest companies could default on their dollar-denominated debts.

In recent trade, the dollar rose to 65.5870 rubles RUBUSD, +6.41%   — its highest level ever — as the price of West Texas Intermediate crude oil for January delivery sunk below $56 a barrel. The dollar was worth 58 rubles Friday.

Worries about the falling price of oil pushed the dollar lower against the yen Monday. The buck USDJPY, -0.52%  was worth 117.64 yen Monday, compared to ¥118.80 Friday.

The ICE U.S. Dollar Index DXY, -0.17%  , a measure of the greenback’s strength against a basket of six currencies, was flat for the day at 88.4360.

S&P Market News Update

The U.S. stock market ended Monday’s volatile session lower, as an unabated fall in oil prices continued to erode investor confidence.

The S&P 500’s SPX, -0.63% traded in a 29 point range, but ended 12.60 points, or 0.6% lower at 1,989.63. Utilities and financials were the biggest decliners, while all 10 sectors finished with losses. The energy sector began the day sharply higher, but ended 0.8% lower.