Market Snapshot
Singapore stocks opened higher on Thursday. STI rose 0.2%, DBS rose 0.6%, SingTel fell 1.6%, Seatrium rose 1.1%, Genting Singapore rose 1.1%, Nio fell 2.8%.
Stocks to Watch
Singtel (Z74): Amid reports that it was intending to sell Optus for A$16 billion (S$14.1 billion), the telco on Wednesday clarified that there was no “impending deal” to offload Optus, contrary to what was reported by the Australian Financial Review. Shares of Singtel closed 3.8 per cent or S$0.09 up at S$2.48, before it called for a trading halt on the same day at 3.35 pm. The counter resumes trading on Thursday.
Singapore Airlines (SIA) (C6L): The national carrier and Garuda Indonesia have jointly submitted an application on their proposed cooperation, said the Competition and Consumer Commission of Singapore on Wednesday. Under the proposed alliance, the companies intend to split profits equally from their services between Singapore and Indonesia as they jointly plan and manage capacity, pricing, as well as inter-airline financial settlements. Shares of SIA closed S$0.03 or 0.5 per cent higher at S$6.39, before the announcement.
China Everbright Water (U9E): A consortium including the group was granted a 30-year concession right for a wastewater treatment plant worth 88.3 million yuan (S$129.4 million) in Qingdao. On Wednesday, China Everbright Water said it will take a 49 per cent stake in the project company, with Qingdao Environmental Energy holding the remaining 51 per cent. Its shares closed 2.3 per cent or S$0.005 up at S$0.22, before the announcement.
Lippo Malls Indonesia Retail Trust (LMIRT) (D5IU): The manager announced on Wednesday in a regulatory filing that the trust will not pay distributions on its S$140 million tranche of 7 per cent perpetual securities on Mar 27. LMIRT’s trustee had decided against paying distributions on the perpetual securities issued in September 2016. LMIRT units were unchanged at S$0.013, before the announcement.
CSE Global (544): CSE Global called for a trading halt on Thursday morning before the market opened, pending the release of announcements. The counter closed on Wednesday flat at S$0.425.
SG Local News
Economists Upgrade Singapore 2024 Growth Forecast, Survey Shows
Economists have upgraded Singapore's 2024 growth forecast, according to a survey by the country's central bank published on Wednesday, with better-than-expected external growth seen as the top upside driver for the economy.
The median forecast of 23 economists surveyed by the Monetary Authority of Singapore is for the economy to grow 2.4% this year, up from a forecast of 2.3% in December's survey.
The trade ministry expects gross domestic product (GDP) for 2024 to be at 1.0% to 3.0%.
The economists surveyed also cut their inflation forecast, with headline inflation and core inflation expected to come in between 3.0 and 3.4%. In the December survey, they had assigned the highest probability to the 3.5 to 3.9% range for headline inflation and 3.0 to 3.4% for core inflation.
MAS projects core inflation to ease to an average of 2.5–3.5% for 2024.
SingTel Looking to Sell Significant Optus Stake to Brookfield, Source Says
Singapore Telecommunications (SingTel) is looking to sell a significant stake in its wholly owned Australian unit Optus to Canadian private equity giant Brookfield, a source with direct knowledge of the matter said on Wednesday.
Southeast Asia's largest telco operator is in advanced talks with Brookfield over the stake sale, the source said, declining to be named as the information is not public yet.
Earlier on Wednesday, SingTel dismissed a report by the Australian Financial Review (AFR) that it was in advanced talks to sell Optus in a deal that could value Australia's second-largest telecommunications group at up to A$18 billion ($11.90 billion).
Singapore's Changi Passenger Numbers Hit Pre-Covid Levels for the First Time
Passenger traffic at Singapore’s Changi Airport, one of Asia’s busiest, topped pre-Covid levels in February as Lunar New Year holidays sparked a surge in travel demand.
The facility, frequently voted one of the world’s best for its futuristic feel and efficiency, recorded 5.35 million passenger movements in February, a 34% increase year-on-year, and 4.3% higher than the same period in 2019, according to data released Wednesday.
The airport is one of the first in Asia to exceed pre-pandemic traffic levels and signals a broader travel rebound is underway across the region. Singapore proved a popular destination for last month’s extended Lunar New Year holiday, while March may prove to be another bumper month due to a series of six Taylor Swift concerts.
Singapore Backs Greater Collaboration in Global Fight Against Fraud, Recovery of Scam Proceeds
The communique endorsed by Singapore and 10 other countries on Monday (Mar 11) in London at the inaugural Global Fraud Summit signals a high level commitment to tackle scams, Second Minister for Home Affairs Josephine Teo said on Wednesday.
There is widespread acknowledgement that fraud is a global problem, she told reporters via video call after the two-day event, which involved governments, regulators, non-profit groups and industry representatives.
The communique included commitments to explore ways to improve the recovery of fraudulently acquired funds across jurisdictions.
Australia, Canada, France, Germany, Italy, Japan, New Zealand, the Republic of Korea, the United Kingdom and the United States also endorsed the communique.
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