Market Snapshot
Singapore stocks opened lower on Monday. STI fell 0.2%, SIA rose 0.2%, DBS rose 0.7%, Singtel fell 3.3%, Seatrium rose 2.3%, NIO rose 3.6%, Yangzijiang Shipbuilding rose 1.5%.
Stocks to Watch
Singtel (Z74): The telco expects to recognise around S$3.1 billion in exceptional non-cash impairment provisions for the second half year ended Mar 31, it said on Monday. However, it does not expect the provisions to affect its dividend payment and underlying net profit for the full-year period, which remain on track. Separately, the group said its wholly owned Australian subsidiary Optus inked an agreement with TPG Telecom to create a regional multi-operator core network. It expects to receive A$1.6 billion (S$1.4 billion) in total service fees over the 11-year term of the agreement, with some A$900 million in incremental cash flows. Singtel’s counter ended 0.4 per cent or S$0.01 lower at S$2.41 on Friday.
Keppel (BN4): The global asset manager and operator will offer 70 million euros (S$102.1 million) in floating-rate notes due 2031. Net proceeds from the issue will be used by the asset manager for general corporate and working capital purposes, said Keppel on Friday. The counter closed 0.3 per cent or S$0.02 lower at S$6.84, before the announcement.
Great Eastern (G07): The insurance arm of OCBC posted a 26 per cent year-on-year increase in profit to S$306.7 million for the first quarter ended March, versus S$244 million in the same period the year before. This was driven by higher profit from the insurance business as well as favourable investment performance in the group’s shareholders fund, said the company on Monday. Shares of Great Eastern ended Friday 0.4 per cent or S$0.07 higher at S$18.69.
Seatrium (S51): The offshore and marine giant announced on Monday a S$100 million share buyback programme to buy back up to 2 per cent of its total issued shares subject to the parameters and guidelines. It added that depending on the prices at which the shares are repurchased, the programme could take more than a year to be completed. Separately, on Friday, Seatrium said its subsidiary Seatrium Offshore & Marine gave notice to bondholders that it aims to fully redeem its S$500 million floating-rate bonds prior to the scheduled maturity date. The counter closed up 1.1 per cent or S$0.001 at S$0.089, before Friday’s announcement.
Best World International (CGN): Shareholders of the beauty product distributor raised questions over the lack of dividend payouts and the compensation of directors at the company’s first in-person annual general meeting in five years on Friday. The company is set to engage shareholders further on the selective capital reduction at an engagement dialogue arranged by the Securities Investors Association (Singapore) at a date to be fixed. Shares of Best World closed flat at S$2.46 on Friday.
Cromwell European Real Estate Investment Trust (CWBU) (Cromwell E-Reit): The Europe-focused Reit sold two assets – one in Finland and another in Italy – for a total consideration of 7.2 million euros. The price represents a blended 2.1 premium to the properties’ latest valuations, said the manager on Monday. Cromwell E-Reit units ended Friday at 1.46 euros, down 0.7 per cent or 1 euro cent.
SG Local News
Singtel Sees $2.3 Billion Impairment Hit, Net Loss in 2024 Second-Half
Singapore Telecommunications on Monday forecast non-cash impairment provisions of S$3.1 billion ($2.28 billion) for second-half of 2024 which would lead to the telecom giant reporting a net loss for the period.
The company also warned that it would report a lower net profit for the full-year ended March 31, 2024.
About S$2 billion of the total impairment provision originates from its mobile network operation unit, Optus' goodwill, Singtel, Southeast Asia's largest telecom operator, said in its filing.
The company is scheduled to report results for the financial year ended March 31 on May 23.
Singapore Plans Law to Support Gig Workers’ Retirement Needs
Singapore will introduce a new law this year that will help so-called gig-economy workers plan for their retirement needs and get work injury protection, Minister for Manpower Tan See Leng said.
“No Singaporean will be left behind, especially vulnerable workers,” Tan said in his May Day message published on Saturday. “This is a landmark move in employment legislation, and we are one of the first in the world to do so.”
Gig-economy workers are also known as platform workers as they rely on online ride-hailing or food-delivery companies such as Grab, Deliveroo Plc. and Lalamove to connect them with consumers for their services.
Singapore Bank Fires Workers Over Misuse of Medical Claims: CNA
Bank of Singapore Ltd., the private-banking arm of Oversea-Chinese Banking Corp., has fired up to 40 employees over the misuse of medical benefits, according to a CNA report.
Hundreds of employees were involved in an investigation that began last year into the misuse of insurance claims, which extended to ineligible items such as skincare products, supplements, toothbrushes and bird’s nest — a Chinese delicacy, people familiar with the matter told CNA. The news was first reported by eFinancialCareers, which said the staff were fired last week.
“Where wrongdoing is alleged, the matter will be investigated and reviewed according to the Bank’s investigative and disciplinary framework ensuring a fair and robust process,” a Bank of Singapore spokesperson told Bloomberg News on Saturday. “Staff involved will be given the time and opportunity to be heard. Should any wrongdoing be found after the conclusion of investigation and necessary disciplinary inquiry, the appropriate disciplinary actions will be undertaken.”
Singapore Airlines Ordered to Pay S$3,580 to Couple in India Over Faulty Seats
Singapore Airlines (SIA) has been ordered to pay a couple in India more than S$3,500 after their seats failed to electronically recline during their journey from India to Australia last year.
The District Consumer Disputes Redressal Commission in Hyderabad ruled in favour of Ravi Gupta and his wife Anjali Gupta, media outlets in India reported on Thursday (Apr 25).
According to a report by the Deccan Chronicle, the couple had travelled from Hyderabad to Australia via Singapore on May 23, 2023.
They complained during the flight that their business class seats, which were supposed to recline electronically, had malfunctioned.
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