Singapore's Straits Times Index rose to fresh highs in May, on optimism over the US economy and encouraging domestic corporate results. The market benchmark gained 5.6% in Singapore-dollar terms, and is up by more than 20% for the year-to-date.
In the first quarter, the economy expanded by a better-than-expected 6.1% year-on-year, boosted by the services and construction sectors. This prompted an upgrade of the official growth forecast for 2007 to 5-7%, from 4.5-6.5% previously.
The island republic is on course to raise its Goods and Services Tax to 7%, up from the current 5%, from July 1.
First-quarter corporate earnings upbeat
Our holdings, such as SembCorp Marine, ST Engineering, Straits Trading, Robinson & Co., OCBC, UOB Group (UOB), Fraser & Neave, Singapore Airlines (SIA), Hong Leong Finance, ComfortDelgro and City Developments all posted encouraging profit growth. In particular, many companies, such as SIA and OCBC, cited strong economic expansion as the key reason for their improved performances.
Property market rebound continues
The property market continued to demonstrate strength with Bukit Sembawang replenishing its landbank through the acquisition of Fairways Condo for S$244m.
Corporate moves abroad
Singapore companies were active in their overseas expansion: UOB signed a preliminary agreement to buy a stake in China's Evergrowing Bank, while SIA is in talks to buy a stake in Shanghai-based China Eastern Airlines.
SGX revamps listing rules
The Singapore Exchange (SGX) proposed several key changes, including a greater focus by the mainboard to attract larger companies with the right pedigree, while second board-listed firms will move to a sponsor-supervised regime.
Portfolio Activity
There were no strategic changes to the portfolio in May, although we took the opportunity to add to several of our holdings, such as Singapore Press Holdings, Singapore Exchange, SP Ausnet, Venture and FJ Benjamin.
Aberdeen Asset Management Asia Ltd
In the first quarter, the economy expanded by a better-than-expected 6.1% year-on-year, boosted by the services and construction sectors. This prompted an upgrade of the official growth forecast for 2007 to 5-7%, from 4.5-6.5% previously.
The island republic is on course to raise its Goods and Services Tax to 7%, up from the current 5%, from July 1.
First-quarter corporate earnings upbeat
Our holdings, such as SembCorp Marine, ST Engineering, Straits Trading, Robinson & Co., OCBC, UOB Group (UOB), Fraser & Neave, Singapore Airlines (SIA), Hong Leong Finance, ComfortDelgro and City Developments all posted encouraging profit growth. In particular, many companies, such as SIA and OCBC, cited strong economic expansion as the key reason for their improved performances.
Property market rebound continues
The property market continued to demonstrate strength with Bukit Sembawang replenishing its landbank through the acquisition of Fairways Condo for S$244m.
Corporate moves abroad
Singapore companies were active in their overseas expansion: UOB signed a preliminary agreement to buy a stake in China's Evergrowing Bank, while SIA is in talks to buy a stake in Shanghai-based China Eastern Airlines.
SGX revamps listing rules
The Singapore Exchange (SGX) proposed several key changes, including a greater focus by the mainboard to attract larger companies with the right pedigree, while second board-listed firms will move to a sponsor-supervised regime.
Portfolio Activity
There were no strategic changes to the portfolio in May, although we took the opportunity to add to several of our holdings, such as Singapore Press Holdings, Singapore Exchange, SP Ausnet, Venture and FJ Benjamin.
Aberdeen Asset Management Asia Ltd
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