SG Morning Highlights | Sembcorp Signs 10-Year LNG Supply Deal with Chevron

Advancers / Decliners is 61 / 58, with 59.73M securities worth S$93.47M changing hands.

In October, Singapore's retail sales rose by 2.2% year-on-year, slightly below the expected 2.4%, with motor vehicles leading the growth. This sector has been a top performer since April 2024, contributing to the gains seen in eight of the 14 sectors analyzed. On a month-on-month basis, retail sales increased by 0.1%, down from September's 0.4% rise, totaling S$4.1 billion with 12.7% from online sales. Excluding motor vehicles, sales increased by 0.3%, recovering from a 1.5% drop in September.

Chua Han Teng from DBS noted the potential for continued growth supported by seasonal spending and government measures like the Assurance Package payouts, although stronger outbound tourism could temper growth. He anticipates a return to pre-pandemic spending levels abroad by the end of 2024.

Additionally, Food and Beverage (F&B) service sales in October grew by 3.9% year-on-year, led by a significant 17.2% increase in sales from food caterers, notably driven by in-flight and event catering, although fast-food outlets declined by 1.5%. Total F&B sales were S$997 million, with online sales making up 24.4% of this figure.

In November, Singapore's Purchasing Managers' Index (PMI) dropped by 1.6 points to 53.9, marking the slowest expansion in seven months and the 21st consecutive month of growth in the private sector, according to S&P Global. The decline was attributed to reduced purchasing activity and lower confidence levels, the least since July 2023, amid heightened competition and future business concerns. Despite these obstacles, there were increases in new sales, consumer services activities, order backlogs, staffing, and both input and selling prices. Escalating raw material and transport costs, along with prolonged lead times, have significantly driven up input costs, impacting selling prices and highlighting persistent challenges related to supply constraints and rising operational expenses.