SG Morning Call | Singapore Stocks Open Higher on Thursday; DBS Eyes $370B in Wealth Assets by 2026

TigerNews SG06-13

Market Snapshot

Singapore stocks opened higher on Thursday. STI rose 0.5%; SIA rose 0.2%; DBS rose 0.5%; OCBC rose 1.1%; UOB and Seatrium rose 0.6%; Singtel rose 0.4%; Nio rose 1.6%.

Stocks to Watch

Mapletree Log Tr: The trust’s manager said it will divest its entire equity interest in its wholly foreign-owned enterprise, Mapletree Logistics Warehouse (Xian), for an estimated price of 70.5 million yuan (S$13.1 million). The divestment is not expected to have a material impact on the trust’s net asset value and net property income for the fiscal year, said the manager on Wednesday. Units of Mapletree Logistics Trust closed flat at S$1.32, before the news.

Man Oriental USD: The hotel investment and management group has signed an option to sell its interest in two retail units adjoining the Mandarin Oriental, Paris, for 148 million euros (S$215.8 million). Proceeds of the sale will go towards the group’s general development strategy. Shares of Mandarin Oriental closed 0.6 per cent or US$0.01 lower at US$1.74 on Wednesday, before the news.

Ossia Intl: The Goh family that controls Ossia International on Wednesday proposed to privatise the company at S$0.145 per share in cash through a voluntary unconditional offer. The offer price represents a premium of about 20.8 per cent over the company’s last traded price on Jun 7. Ossia International called for a trading halt last Friday after the market closed, with its shares ending at S$0.12. The counter resumes trading on Thursday.

SG Local News

Singapore's Top Bank DBS Eyes $370 Bln in Wealth Assets by 2026, Top Exec Says

DBS Group plans to boost assets under management for its wealth business to S$500 billion ($369.7 billion) by the end of 2026, said the unit's head, as the top Singaporean bank bets on robust inflows into the city state.

Wealth assets at DBS grew 23% to a record S$365 billion last year, as Singapore benefitted from strong inflows of wealth into Asia due to its relative political stability, low taxes, and policies favourable for setting up family offices and trusts.

DBS, Southeast Asia's largest lender by assets, banks more than a third of Singapore's family offices.

Economists Expect Singapore's Monetary Policy to Remain Unchanged in 2024, Survey Shows

Most economists are expecting Singapore's monetary policy to remain unchanged at the July and October reviews, according to a survey by the central bank, as they expect core inflation to be sticky at 3% for the year.

Annual core inflation came in at 3.1% in April, matching the rate in March.

The median forecast of 20 economists surveyed by the Monetary Authority of Singapore is for the economy to grow 2.4% this year, unchanged from the previous survey in March.

Singapore, Malaysia Near Final Pact for Special Economic Zone

Singapore and Malaysia are close to finalizing plans to develop a special economic zone that seeks to boost trade and connectivity.

The two neighbors are “very close” to a final agreement on the SEZ in Malaysia’s southern Johor state, the country’s Prime Minister Anwar Ibrahim said, citing initial briefings.

“I would even drop into Singapore to meet the potential investors to encourage them but we have to get the parameters and issues resolved,” Anwar said in Kuala Lumpur on Wednesday at a joint press briefing with Singapore’s Prime Minister Lawrence Wong.

Container Prices Rise in Singapore as Demand Surges Amid Shipping, Port Disruptions

Rising demand and tighter supply sparked by shipping disruptions and port congestion have sent container prices here surging over the past eight months, according to new data.

Average container prices in Singapore surged 26 per cent from October 2023 to May, with a twenty-foot container now costing US$1,211 (S$1,638), up sharply from US$950, noted a June 12 report by online container trading platform Container xChange.

This is also contributing to elevated container leasing rates on key routes, such as from China to the United States, which have doubled since November, and added to the higher freight rates shippers are already paying to move goods around the world.

Wafer Manufacturer Siltronic Opens $2.9B Facility in S’Pore, Will Expand Hiring

A German firm that supplies semiconductor materials officially opened a $2.9 billion advanced manufacturing facility here on June 12.  

The 150,000 sq m factory in Tampines – Siltronic’s third production plant in Singapore – produces silicon wafers for semiconductors, which are used in mobile devices, electric vehicles and data centres.

Siltronic said the plant has 300 employees but this is expected to hit 600 by 2028, with roles ranging from engineers to information technology specialists.

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Comments

  • Success88
    06-13
    Success88
    Siltronic, a well-established silicon wafer manufacturer, has been operating in Singapore for over 20 years. After 20 years then decided to expand their business here. However, some observers believe the company's management practices lag behind those of top competitors, and haven't seen significant growth. 
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