Market Snapshot
Singapore stocks opened higher on Thursday. STI up 0.24%; SingPost, Raffles Medical up about 1%; Singtel, SGX up within 1%; Golden Agri-Res down 1.8%; Kep Infra Tr, Frasers Property down 1% each.
Stocks in Focus
Keppel, Keppel DC Reit: The manager of Keppel DC Reit announced on Wednesday its acquisition of the remaining stake in two data centres from its sponsor Keppel, for a consideration of up to S$8.4 million. This gives the real estate investment trust full ownership of Memphis 1, the entity holding the two artificial intelligence-ready hyperscale data centres in Singapore. Units of Keppel DC Reit closed at S$2.32 on Wednesday, down 1.3 per cent or S$0.03, before the announcement; shares of Keppel closed 0.7 per cent or S$0.06 lower at S$8.64.
Oiltek: Its ongoing projects in Indonesia are not affected by the current unrest in the country, the group said in a Thursday bourse filing. The projects are not located near the major city centres where the demonstrations are taking place, it added. Shares of Oiltek finished Wednesday 2.1 per cent or S$0.02 higher at S$0.975.
mm2 Asia: Core businesses and continuing operations are not expected to be adversely hit by the voluntary liquidation of Cathay Cineplexes, the group said in a Wednesday bourse filing. This was in response to queries from the Singapore Exchange. In a separate filing, mm2 Asia said that units of its associated company mm Connect, mm2 Star Screen and mm2 Screen Management, received payment demands from solicitors representing The Walt Disney Company (Malaysia) and The Walt Disney Company (Southeast Asia). Shares of mm2 Asia closed flat at S$0.003, before the news.
SG Local News
Singapore’s Snowballing Cash Levels Are Boosting Local Bonds
The recent build-up of cash in Singapore’s money market is strengthening demand for the nation’s bonds, driving returns to near the highest in the region.
The cost of borrowing in the interbank market fell to the lowest since June 2022 this week, after tumbling more than 70 basis points in August. Inflows driven by expectations of further currency strength, dwindling net bill sales and slower loan disbursals have enhanced the city’s cash levels, a mix that’s likely to keep overnight rates subdued.
Adding to the city’s cash levels are foreign investments into Singapore’s bonds, which are underpinned by the city-state’s top credit rating. The securities are increasingly viewed as safe-haven alternatives to US assets amid concerns over US President Donald Trump’s fiscal policies.
COE Premium for Mass-Market Cars Hits Record High of S$107,889
The Certificate of Entitlement (COE) premium for mass-market cars hit a new record of S$107,889 in September’s first round of bidding.
Premiums for Category A rose 3.2 per cent or S$3,365 to S$107,889, eclipsing the previous all-time high of S$106,000 set in October 2023’s second round of bidding.
The Category A COE applies to mainstream cars that have engines of up to 1,600 cubic centimetres (cc) in capacity or with up to 97 kilowatts (kW) of power, as well as electric vehicles (EVs) with up to 110 kW of power.
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