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# Singapore
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Aberdeen Singapore Equity Fund

Objective

Aims to provide holders with medium to long-term capital growth from a portfolio of Singapore equities.

 

Manager's Monthly Report

August 2014

  • The local stockmarket fell in August as data from China and Europe was weak, while geopolitical tensions heightened between the West and Russia over Ukraine.
  • Domestic economic growth slowed to 2.4% in the second quarter, as the manufacturing sector softened, while the services and construction segments also moderated. Non-oil domestic exports contracted by 3.3% year-on-year in July, but the rate of decline decelerated, possibly indicating that shipments of manufactured goods were bottoming out.
  • In corporate news, amid an increasingly competitive domestic environment, performance among the local banks was mixed, although loan growth remained robust. On an individual level, DBS had a solid quarter with non-performing loans on a downward trend and improving net-interest margins. OCBC was buoyed by higher trading income and life assurance profits. The bank has announced plans to raise $3.3 billion in a rights issue to fund its acquisition of Wing Hang Bank. UOB registered the most muted performance of the three local banks, in view of its loan book having the largest exposure to the slowing domestic real estate sector, although profits were lifted by trading gains.
  • Singapore Telecommunications was resilient, marking better profits after adjusting for one-off items. In the healthcare sector, Raffles Medical’s earnings were higher on the back of clinic expansion and more patients seen.
  • Over the month, we completed our initiation of KrisEnergy, an undervalued oil exploration and production company with reserves encompassing a number of fields in Asia, and managed by a seasoned team with a strong track record.