Jul 15, 2016

    Outage takes wind out of S'pore traders' sails

    TRADING volume and value in the Singapore market yesterday hit their lowest level this year, after a major outage led to a significantly shortened session.

    The four-hour trading closure owing to technical faults saw only 538.7 million shares worth $335.2 million changing hands - about a third of recent averages.

    When trading was halted, the Straits Times Index had lost 3.73 points, or 0.13 per cent, to 2,906.92.

    "We were expecting the market to be back up at 2pm but it didn't happen. Then again at 4pm, and it still didn't happen. It was quite bad," said remisier Desmond Leong, who was watching the market from home yesterday.

    He noted that while technical glitches do happen, it would have been better if the bourse operator reopened trading, even if it was just for 30 minutes.

    "If I had to do contra trades, that 30 minutes would mean a lot to me," he said, adding that he expects trading today to be more volatile than usual, as traders pick up from what was left off during the outage.

    Oil and gas play Annica Holdings was the day's most heavily traded, closing flat at 0.1 cent on 85.8 million shares done.

    Other actives included Noble Group's rights shares, which added 0.1 cent or 2.1 per cent to 4.9 cents on its last day of trading, as well as Resources Prima Group, which surged 0.9 cent or 20 per cent to 5.4 cents.

    Jet fuel supplier China Aviation Oil sank 3.5 cents or 2.4 per cent to $1.45 after an intraday high of $1.515. Coal mining group Geo Energy Resources jumped 1.1 cents or 9 per cent to 13.3 cents.

    Postal company Singapore Post finished flat at $1.57 after it called for a trading halt at 10.30am, pending the outcome of its annual general meeting in the afternoon.

    Asian markets extended gains for the fourth straight session, still driven by optimism that global policymakers will roll out further stimulus measures.

    Tokyo added 0.95 per cent on a weaker yen, as traders held on to Prime Minister Shinzo Abe's promise of a new round of stimulus efforts.

    The Nikkei 225 has erased all the losses it sustained in the wake of Britain's shock vote to leave the European Union.

    Hong Kong rose 1.12 per cent and Sydney grew 0.43 per cent. Shanghai pared 0.22 per cent after trade figures showed sluggish consumer demand.

    The overall buoyant sentiment was likely helped by Wall Street's 0.13 per cent overnight gain.