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Stock Market News of the Week

Market News of the Week – July 19 (1st Week)

Stock market news are aplenty and the stock market is affected by news. Some news are important, some news are not.

Some news can affect businesses more, whereas some news are just tabloids.

As investors, it is our jobs to separate news from noise by interpreting stock market news with a neutral and critical sense of mind.

Stocks are affected by the underlying business. Business are affected by economics and politics. And the cycle goes round.

Here are important market news of the 1st week of July, 1st June – 6th June.

  • 1st Stock Market News – Hong Kong Protesters Attacks Legislation Council Buildings on Handover Anniversary

Following the “organised riot” in mid-June, Hong Kong protesters held a protest outside the Legislation Council building on the 22nd anniversary of the handover of Hong Kong.

Equipped with a range of tools, ranging from a metal cart, sticks and shields, helmets and spanners, protesters attacked the Legislation Council building in the afternoon. Finally gaining access into the building at night, in which protesters went to vandalise the internal structures of the buildings. The police regained control of the building at midnight.

The attack, the extradition bill and the frequency of the riots has brought tension and worry to the financial hub, with funds reportedly flowing out of Hong Kong to Singapore on the back of the troubles.

Meanwhile, the Hang Seng Index was not heavily affected by the protests and riots.

Hang Seng Index

  • 2nd Stock Market News – Entrance of RedONE into Singapore’s telco market

In the ever competitive telecommunication market, there is a new entrance into Singapore, Malaysia’s RedONE. RedONE will be offering 3 post-paid plans that provides data and phone call services in both Singapore and Malaysia.

RedONE plans

RedONE is a mobile virtual network operator (MVNO) that leases their network from Starhub.

  • 3rd Stock Market News – The Big Read on Telco

Today published an interesting article titled, “The Big Read: Singapore’s big telcos face rude awakening, as the little guys get the last laugh“.

On the back of the launch of RedONE as a MVNO, it seems that the road ahead for traditional telcos in Singapore, Singtel, Starhub and M1 is bleak, especially with the delisting of M1.

In the article, the big boys are of course Singtel, Starhub, M1 and TPG (if their network is ready!). The little guys are the MVNOs, Circles Life, Zero1, Zero Mobile, MyRepublic, RedONE, GRID and GIMO.

The dynamics between the network providers and MVNOs are interesting and it is worth the time to understand them to see who actually stands out. Especially when the mobile penetration rate is at about 150%

  • 4th Stock Market News – IMF to European Central Bank

Christine Largarde, the Chairwoman of the International Monetary Fund (IMF), will depart IMF to head the European Central Bank. Ranked by Forbes as one of the most powerful woman in the world, Christine Largarde has overseen the recovery of the economies following bailouts following the Global Financial Crisis.

  • 5th Stock Market News – Price Surge and Possible Acquisition 

In more local news, SIA Engineering, one of the dividend darlings of Singapore, has seen a sudden price surge over Thursday and Friday. Upon enquiry, SIA Engineering says that they are unaware of any information than can spike a jump.

Meanwhile, DBS analysts are speculating a possible acquisition of SIA Engineering by parent company SIA.

  • 6th Stock Market News – Ascott Residential Trust and Ascendas REIT Merger

Still on the line of Acquisition & Merger, CapitaLand has announced the merger of Ascott Residential Trust and Ascendas Hospitality Trust to create the largest hospitality trust in Asia-Pacific.

Post-merger, the REIT will be the 8th largest in the world, with an asset value of $7.6 billion. Ascott Residential Trust will acquire Ascendas REIT at S$1.0868 per unit.

For last week’s news, click here.

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