SINGAPORE shares fell marginally on Tuesday (Dec 20) as concerns over higher inflation levels and potential interest rate hikes plagued markets once again, and took a toll on investor sentiments. 

 

On the local bourse, some 954.9 million shares worth a total of S$926.2 million were traded, with losers beating gainers 318 to 228. The Straits Times Index shed 0.1 per cent or 2.64 points to finish the trading session at 3,253.97.

 

It was a sea of red in stock markets across the region. The dips were led by the Nikkei 225 index, which slipped 2.5 per cent, followed by the ASX 200, which shed 1.5 per cent. Hong Kong&rsquo s Hang Seng Index lost 1.3 per cent, while in South Korea, the Kospi closed 0.8 per cent lower. The KLCI fell 0.7 per cent.

 

SPI Asset Management&rsquo s Stephen Innes said that bearish sentiments are still prevalent among traders: &ldquo Investors are still precariously perched on the cliff edge after recent remarks from the Fed and other hawkish central banks across the globe.&rdquo

 

&ldquo The cumulative effects of global monetary policy tightening will significantly impact equity valuations and, more importantly, global growth.&rdquo

 

On the local bourse, Jardine Matheson Holdings : J36 +1.47% was the top gainer by value, rising 1.5 per cent or US$0.74 to US$51.14.

 

Lenders also booked gains on Tuesday. DBS : D05 +0.29%topped the trio, with a 0.3 per cent or S$0.10 gain to S$34.21. UOB : U11 +0.26%added 0.3 per cent or S$0.08 to S$31.04, while OCBC : O39 +0.66%rose 0.7 per cent or S$0.08 to S$12.29.

 

For the second day in a row, Nio : NIO -5.5%was the biggest loser. The stock fell 5.5 per cent or US$0.64 to US$11.00.

 

Sembcorp Marine : S51 0% was the most traded counter by volume, with just under 90.8 million shares changing hands. The stock closed flat at S$0.14.

 

Other heavily traded counters were Genting Singapore : G13 -1.59%, Golden Agri-Resources : E5H 0% and The Place Holdings : E27 -8.7%.

JARDINE Matheson : J36 +1.56% on Thursday (Jul 28) reported a 22 per cent increase in H1 2022 underlying net profit to US$747 million from US$615 million a year ago.

 

In a regulatory filing after market close, the conglomerate also announced a 4 per cent rise in revenue for the period to US$18.2 billion from US$17.5 billion a year ago.

 

The growth in revenue was driven by Astra&rsquo s performance, Jardine Cycle & Carriage and Hongkong Land&rsquo s improved underlying profit. Mandarin Oriental also delivered a lower underlying loss for H1.

 

This resulted in Jardine Matheson reporting earnings of US$423 million in the first half, reversing a loss of US$117 million in 1H 2021. South-east Asia contributed to the bulk of the conglomerate&rsquo s profit at 58 per cent, while 37 per cent came from China in H1.

 

The directors have declared an interim dividend of US$0.55 per share, up 25 per cent from a year ago.

 

The group expects that earnings growth will substantially moderate for the full year, as Covid-19 continues to impact its businesses, particularly in Hong Kong and on the Chinese mainland,&rdquo said Ben Keswick, executive chairman, Jardine Matheson.

JPMorgan Chase & Co. documents and testimony are being sought in a suit alleging Hong Kong conglomerate Jardine Matheson Holdings Ltd.&rsquo s US$5.5 billion ($7.65 billion) buyout of a subsidiary was &ldquo coercive and fundamentally unfair&rdquo to minority shareholders.

 

In a filing Wednesday in Manhattan federal court, investors in the subsidiary, Jardine Strategic Holdings Ltd., asked for permission to file a subpoena on JPMorgan. The bank&rsquo s JPMorgan Cazenove Ltd. unit was the lead financial adviser to Jardine Matheson when it took the subsidiary private in April 2021.

 

Minority shareholders, who held about 15% of Jardine Strategic, have previously complained that Jardine Matheson&rsquo s offer price represented a US$1 billion discount to the value of their holdings.

 

Maso Capital Investments Ltd. and Singapore investor Clifford Cheah King Mun said they are seeking to use evidence from JPMorgan and other advisers on the buyout in a proceeding in Bermuda Supreme Court aimed at determining the fair value of their shares in Jardine Strategic. Maso and Cheah filed a similar petition in Delaware federal court last month seeking evidence from Evercore Inc., a UK unit of which produced a valuation opinion on the deal.

 

&lsquo Noble House&rsquo

 

One of Hong Kong&rsquo s last remaining British trading houses, Jardine Matheson was the inspiration for James Clavell&rsquo s novel &ldquo Noble House.&rdquo The conglomerate is still a major player throughout Asia, with businesses including real estate, automobiles, hotels and retail. The buyout created a single holding company for its subsidiaries.

 

Founded by Scots William Jardine and James Matheson, the group has been controlled for generations by the Keswick family and is currently led by executive chairman Ben Keswick. Minority shareholders in Hong Kong have long complained of their lack of power in the face of family control of the territory&rsquo s largest businesses.