The STI closed at 3355.94, down 0.75% from previous closing of 3381.26.
Manufacturing output fell 6.9 percent in June 2019 compared to previous year. The manufacturing sector accounts for one fifth of the economy. However, on a seasonal month on month basis, there was a 1.2% increase.
Slump in semiconductor industry
Global semiconductor sales are expected to decrease 12-13 % in 2019, their biggest drop since the dotcom bubble, according to industry association SEMI. Although a weaker global economic environment has affected exports negatively, the slump is exacerbated by trade tensions between US and China.
Jobless Rate for Singaporeans inches up to 3.3% in Q2 as compared to 3.2% in Q1. Total employment growth in the second quarter of 2019 (excluding foreign domestic workers) grew by 4,000, lower than the 10,700 figure in the first quarter and the same period last year (6,500). The manufacturing sector continues to lay off workers.
Outlook: Underweigh the market due to weak economic data as well as global uncertainties. We forecast the economic outlook to be bleak for the second quarter of 2019 with a risk of falling into technical recession.
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