Market Snapshot
Singapore stocks opened higher on Monday. STI rose 0.1%, SIA rose 0.3%; SingTel rose 0.4%; Seatrium fell 1.1%; NIO rose 2.4%; Keppel rose 0.3%.
Stocks to Watch
Singtel (Z74): The telecommunications giant’s Australian subsidiary, Optus, has named Stephen Rue as its new chief executive effective November 2024. Rue is currently CEO of Australia’s National Broadband Network. Optus’ interim chief Michael Venter will continue in his role until Rue comes onboard, said the company on Monday. Shares of Singtel ended on Friday flat at S$2.38.
Venture Corp (V03): The technology solutions provider on Friday posted an 18.3 per cent decrease in net profit to S$60.1 million for the first quarter ended Mar 31, from S$73.6 million in the corresponding year-ago period. Meanwhile, its Q1 revenue decreased 18.9 per cent year-on-year to S$666.7 million, from S$821.7 million previously. The counter closed S$0.25 or 1.8 per cent higher at S$14.46, before the financial results.
ARA US Hospitality Trust (XZL) (ARA H-Trust): The trust posted a net property income of US$6.4 million for Q1 ended Mar 31, a 1.1 per cent rise from the same period a year earlier. Gross revenue was a marginal 0.2 per cent higher at US$36.2 million for the fiscal quarter, while gross operating profit grew 2.1 per cent to US$10.7 million, from US$10.5 million. The trust’s manager on Friday said its portfolio was affected by disruptions to demand from weather and the earlier Easter holiday, with occupancy falling 2.2 percentage points to 59.5 per cent. Stapled securities of ARA H-Trust closed flat at US$0.28, before the update.
YHI International (BPF): The automotive group said on Friday that its subsidiary, YHI Corporation (Singapore), has been charged for allegedly failing to take reasonably practicable measures necessary to ensure the safety and health of an employee at work, leading to their death. The group added that YHI Singapore has appointed legal counsel to advise on the charge and will update shareholders on related material developments when appropriate. Shares of YHI International closed 3.1 per cent or S$0.015 higher at S$0.50, before the announcement.
LHN (41O): The real estate management services group said that it expects net profit to drop 28.6 per cent to no less than S$14.5 million for the first half ended Mar 31, from S$20.3 million in the previous corresponding period. In a profit guidance update released on Sunday, LHN attributed the lower net profit estimate to the absence of a one-off gain from the disposal of associate Getgo Technologies and a lower gain from net investment in subleases. Shares of LHN closed flat at S$0.33 on Friday.
SG Local News
Malaysia's King to Make First Overseas State Visit to Singapore
Malaysia's king will make an official visit to Singapore from Monday (May 6) to Tuesday at President Tharman Shanmugaratnam's invitation, Singapore's Ministry of Foreign Affairs said on Sunday.
This will be Sultan Ibrahim Sultan Iskandar's first overseas state visit since he was installed as Malaysia's king. He last visited Singapore in 2022 as Sultan of Johor.
Sultan Ibrahim became Malaysia's 17th king in January, more than 34 years after his father's reign.
On his visit, he will be accompanied by Queen of Malaysia Raja Zarith Sofia, Malaysia's Minister of Transport Anthony Loke and other senior officials.
Singtel’s Optus Names Rue as CEO as It Seeks to Rebuild Trust
Singapore Telecommunications Ltd.’s Australian phone carrier Optus appointed Stephen Rue as chief executive officer with effect from November, it said in a bourse filing Monday.
Rue has been CEO of Australia’s National Broadband Network since 2018. His appointment comes as Singtel moves to a more decentralized structure, according to a statement announcing the move. Michael Venter will remain interim CEO until Rue’s appointment later this year.
Optus Mobile, wholly owned by Singtel, last week announced an agreement with TPG Telecom to create a regional multi-operator core network. Singtel said about a month ago that there was no impending deal to sell Optus, after a report that Brookfield had been in discussions for a 20% share in Optus but the parties couldn’t agree on terms.
Microsoft Bets Big on South-East Asia, Pledges Billions in AI and Cloud Investments
Microsoft chairman and chief executive Satya Nadella last week completed a three-country tour across South-east Asia from April 30 to May 2, with each stop delivering big-ticket investments and upskilling initiatives.
Nadella’s first stop was Indonesia, where Microsoft announced that it will invest US$1.7 billion over the next four years in new cloud and artificial intelligence (AI) infrastructure, as well as in AI skilling opportunities for 840,000 people.
Two days later, Nadella was in Bangkok where Microsoft announced that it will open its first data centre region in Thailand to expand the availability of the company’s hyperscale cloud services.
The following day, on May 2, Microsoft revealed plans to invest US$2.2 billion in Malaysia over the next four years.
The investment – the single largest in Microsoft’s 32-year history in the nation – includes building cloud and AI infrastructure, creating AI skilling opportunities for an additional 200,000 people and establishing a national AI Centre of Excellence.
Glencore Group Nears Deal for Shell’s Singapore Oil Refinery
A group including commodity trader Glencore Plc and Indonesian chemicals business PT Chandra Asri Pacific is in advanced talks to buy Shell Plc assets in Singapore in a deal that could be worth about $1 billion, people with knowledge of the matter said.
The parties are working on the details of a transaction that could be announced as soon as the coming weeks, according to the people, who asked not to be identified as the process is private. Shell’s Singapore assets include a refinery capable of processing 237,000 barrels of oil a day, a facility on Jurong Island that produces monoethylene glycol and an ethylene plant on Pulau Bukom.
After a spell of bumper returns, top commodity traders have been snapping up refinery assets that allow them to profit from the margins that can be captured turning crude oil into consumable fuels. Some refineries also offer more trading leverage than others, with Shell’s Bukom plant sitting at the center of a hub of global maritime trade.
Top US Treasury Official to Visit Singapore, Malaysia to Discuss Sanctions
The US Treasury Department’s top sanctions official will travel to Singapore and Malaysia next week, a source familiar with the matter told Reuters, as Washington seeks to combat funding for Iran and its proxy groups as well as evasion of its sanctions on Russia.
The source, speaking on condition of anonymity, said there has been an uptick in money moving to Iran and its proxies, including Hamas, through the Malaysian financial system.
During the visit, first reported by Reuters, Mr Brian Nelson, the Treasury’s Undersecretary for Terrorism and Financial Intelligence, is expected to discuss US concerns and the sanctions risk such activity poses, the source said. Mr Neil MacBride, the Treasury’s General Counsel, will also be on the trip.
Comments