WB WEEKLY BRIEFING

5 Week ending 9/9/2023 SINGAPORE

Week end Prior Δ CURRENTS EVENTS
Interest Rates 9/9/2023 Week w/w
2 Year Singapore Tr. 3.59% 3.61% (2) bps
30 Year Singapore Tr. 3.08% 3.07% 1 bps Politics - The Aljunied-Hougang Town Council (AHTC) has stated that it sees no reason to prevent two senior Workers' Party
(WP) leaders, Sylvia Lim and Pritam Singh, from carrying out their roles as elected town councilors. They responded to a
CNY / SGD 5.40 5.38 (0.4%) letter from the Ministry of National Development (MND) seeking information on Lim and Singh's responsibilities in payment
HKD / SGD 5.76 5.80 0.7% and procurement processes. AHTC emphasized that decisions are made collectively in committees, with each member
SGD / USD 1.36 1.35 (0.7%) having one vote. They also highlighted safeguards in place to prevent conflicts of interest. The Court of Appeal had previously
found Lim and former WP chief Low Thia Khiang negligent in certain areas, including payments processes. However, AHTC
Oil 87.3 85.83 1.7% believes that concerns related to conflicts of interest have been fully addressed. They referenced reports and audits to support
Gold 1918.90 1,939.40 (1.1%) their position. AHTC stated that they have no plans for further action, expressing confidence that regulatory intervention is
unnecessary. The MND has acknowledged AHTC's response and will review the information provided. Overall, the news
touches on various economic principles related to governance, accountability, resource allocation, regulatory intervention, and
Wilmar International 3.65 3.78 (3.4%) transparency. It suggests that AHTC is taking steps to ensure responsible management of resources in line with economic
Singapore Airlines 6.74 6.87 (1.9%) best practices.
Economics - This year, corporate income
Market - Singapore stocks ended lower on Friday, tracking
tax collection saw a significant year-on-
losses across the region. The upbeat mood sent the Straits
year increase of 26.8%, outperforming all
Times Index (STI) down 0.6% or 18.84 points to 3,207.75,
other categories. Personal income tax
with bears outnumbering bulls by 184 to 177 in the broader
collection increased by 9.1% during the
market with traded an average of 778.2 million securities
same period. Overall, the total tax revenue
worth $671.5 million. STI's biggest loser was Jardine Cycle
accounts for 75.4% of the government's
& Carriage, down 1.9% to $32.13. Other discounters
operating revenue and represents 10.7%
included Jardine Matheson, down 0.6% to $47.65, and Nio,
of Singapore's Gross Domestic Product
down 2.6% to $10.15. Domestic banks closed in the red:
(GDP). Additionally, IRAS distributed
UOB ended down 1.1% at $28.28; OCBC Bank fell 1.4% to
S$4.6 billion in grants to over 120,000
$12.43; and DBS Bank fell 0.5% to $33.23. Thus, the
businesses to support local hiring and
Singapore market remains defensive, with high yields and
wage growth for Singaporeans. These
low valuations at the present time. Going forward, he added,
grants include various initiatives such as
the country could do better in the market with the support
the Jobs Growth Incentive, Progressive
provided by the resilience of the service sector, the
Wage Credit Scheme, Senior Employment
possibility of a pause in interest rate hikes and the recovery
Credit, and the Small Business Recovery
in manufacturing and export.
Grant. This will give Singapore a larger
Stocks - After one night on September 8, the global market was mostly in the red, and the Singapore
market did not see much improvement.
Singapore’s Straits Times Index (STI) fell 3.86 points or 0.1% to 3,222.73 as at 9.01 am. Across the
broader market, losers outnumbered gainers 60 to 42, after 54 million securities worth S$30.54. The
Straits Times Index (STI) fell 0.6% or 18.84 points to 3,207.75. Losers outnumbered gainers 184 to
177, with 778.2 million securities worth S$671.5 million changing hands. The largest decliner of the day
was Jardine Cycle & Carriage, which fell 1.9 per cent or S$0.63 to S$32.13. Other losers include UOB,
Jardine Matheson and Nio. Jardine Matheson’s shares slipped 0.6% or US$0.27 to US$47.65, while
Nio tumbled 2.6% or US$0.27 to US$10.15.The trio of local banks all closed in the red. UOB ended
S$0.32 or 1.1% lower at S$28.28, OCBC fell S$0.17 or 1.4% to S$12.43, while DBS slipped 0.5 per
cent or S$0.18 to S$33.23. The entire Asian market in the past week was mostly in the red. Australia,
South Korea, Shanghai and Malaysia all ended the day down.In summary, the Singapore market
opened with a decrease in STI of 0.1% in the September 8 session.
SINGAPORE

4.0% 140 2,200

GOVT. BONDS KEY COMMODI TIES FTSE SINGAPORE
130
3.5% 2,100 360.0
Oil (16% of exports) $/barrel
120 355.0
Gold (proxy for fear) $/t. oz.
3.0% 2,000 350.0
110
345.0
2.5% 100 1,900
340.0
90 335.0
2.0% 1,800
80 330.0

1.5% 1,700 325.0

70
320.0
Singapore - 2 year Singapore - 30 year
1.0% 60 1,600 315.0
5/20/2023 6/19/2023 7/19/2023 8/18/2023 5/20/2023 6/20/2023 7/20/2023 8/20/2023 5/20/2023 6/20/2023 7/20/2023 8/20/2023

FTSE Singapore

CNY / SGD
5.45

5.40

5.35

5.30

5.25

5.20

5.15

5.10
5/20/2023 6/20/2023 7/20/2023 8/20/2023

6.00
JPY / USD

5.80

5.60

5.40
5/20/2023 6/20/2023 7/20/2023 8/20/2023