SGX Weekly Review | Nio Soars 8%; Singapore Airlines and Garuda Indonesia Receive Approval for Joint Venture

TigerNews SG07-06

Market Snapshot

The Singapore stock market added 2.34% this week.

In terms of individual stocks, Top Glove jumped 9.68%, NIO soared 7.69%, DBS gained 4.55%; Mandarin Oriental down 5.2%.

SG Local News

Hong Kong Fines DBS over Breaching Anti-Money Laundering Rules

The Hong Kong unit of DBS Group Holdings, Singapore's biggest lender, was fined HK$10 million ($1.28 million) by Hong Kong's banking regulator for violating anti-money laundering (AML) and counter-terrorist financing regulations.

The disciplinary action comes after an investigation conducted by the Hong Kong Monetary Authority (HKMA), which looked into control failures of DBS Bank (Hong Kong) between April 2012 and April 2019, the regulator said in a statement on Friday.

Shell to Take up to $2 Billion Writedown on Singapore and Rotterdam Plants

Shell will take an impairment charge of up to $2 billion after the sale of its Singapore refinery and pausing of construction of one of Europe's largest biofuel plants, it said on Friday.

The British energy company had announced on Tuesday that it would halt construction at its Rotterdam plant in the Netherlands because of weak market conditions. The biofuels plant was slated to have annual capacity of 820,000 metric tons a year and begin operations next year.

Singapore Airlines and Garuda Indonesia Receive Approval for Joint Venture

Singapore Airlines (SIA) and Indonesian flag carrier Garuda Indonesia have received approval from the Competition and Consumer Commission of Singapore for a joint venture (JV) agreement.

The two companies said on Friday (Jul 5) that the JV will allow them to collaborate on a wider range of commercial activities that will benefit both airlines, as well as Singapore and Indonesia.

These activities may include operating joint revenue-sharing flights between the two countries; coordinating flight schedules to offer travellers more options; “seamless connectivity” between Singapore, Indonesia and other countries; and exploring joint sales and marketing initiatives that provide greater value to both airlines’ customers.

Singapore Retail Sales up 2.2% in May on Higher Car Sales

Singapore’s retail sales grew 2.2 per cent year on year in May, reversing the 1.2 per cent decline in April, powered by higher motor vehicle sales.

Private-sector economists polled by Bloomberg had expected May’s retail sales to grow 0.2 per cent year on year.

On a month-on-month, seasonally adjusted basis, retail sales gained 2.4 per cent, reversing the previous month’s 2.6 per cent fall, Department of Statistics data released on Friday (Jul 5) showed.

At Least 2,000 New Private Homes to Come on Stream from Projects Set for Q3 Launch

SOME 2,300 new private homes are expected to be marketed in the third quarter of 2024, with up to nine project launches said to be lined up between now and end-September.

Coming up this weekend is the preview of Kassia, a freehold 276-unit condominium project at Flora Drive in the Upper Changi region, with prices starting from S$883,000.

DBS Buys 1 Mil Units in CLINT for $990,000

DBS Bank has bought 1 million units in CapitaLand India Trust (CLINT) for $990,000 or 99 cents per share.

According to a July 3 filing, the bank bought the units via the market on June 27.

After the transaction, DBS now owns 0.656% of the units in the REIT.

Six Family Office Funds Tied to Singapore Launder Case Got Tax Breaks

Six single family office funds linked to a S$3 billion ($2.2 billion) money laundering case in Singapore have received tax incentives from the Monetary Authority of Singapore.

The tax benefits were withdrawn starting from the financial year the owners of these family office funds or their spouses were charged or convicted, said Deputy Prime Minister and MAS chair Gan Kim Yong in a written parliamentary reply. The benefits accorded prior to that won’t be clawed back, unless there were breaches of the tax incentive conditions then, Gan added.

DBS Boosts Digital-Asset Push With First Stablecoin Tie-Up

Singapore’s largest bank DBS Group Holdings Ltd. will for the first time custody stablecoin reserves and offer related cash management services, in a tie-up with the local unit of cryptocurrency issuer Paxos Trust Co.

The lender said the development deepens its wide-ranging involvement in the digital-asset ecosystem, making the announcement after Paxos’ operation in the city-state received a license from the Monetary Authority of Singapore.

Ninja Van Cuts Singapore Staff in Second Round of Layoffs

Ninja Van has cut 5% of its Singapore staff amid its expansion into business-to-business restocking and cold chain logistics, the Straits Times reported, citing the company.

The logistics provider was “unable to avoid layoffs” after reviewing the roles in line with the group’s direction, a spokesperson told the local newspaper on Monday. Ninja Van declined to respond to ST’s queries on the size of its workforce and if Singapore was the only country affected.

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