Market Snapshot
Singapore stocks opened higher on Tuesday. STI rose 0.4%, SIA rose 0.2%; DBS rose 0.6%, SingTel rose 1.3%, Seatrium fell 1.1%, NIO rose 2.5%.
Stocks to Watch
Keppel (BN4): The asset manager on Monday said its Data Centre Fund II signed a framework agreement with Japan-listed property player Mitsui Fudosan to purchase a data centre in western Tokyo. Separately on the same day, the company said it also signed a memorandum of understanding with Mitsui Fudosan to explore data centre development and investment opportunities in Japan and South-east Asia. The counter closed S$0.02 or 0.3 per cent higher at S$7.18, before both announcements.
Olam Group (VC2): The agribusiness group’s food ingredients unit OFI has secured export credit agency linked financing of about US$500 million. On Tuesday, Olam said the facility comprises a five-year US$250 million tranche and a seven-year 37.38 billion yen (S$338.8 million) tranche. Proceeds from the facility will be used towards the unit’s general corporate purposes. Shares of Olam closed flat at S$1.05 on Monday.
Singapore Exchange (S68) (SGX): The bourse operator on Tuesday announced that it will launch short-term interest rate futures linked to the Singapore Overnight Rate Average and Tokyo Overnight Average Rate for hedging and trading fluctuations in interest rates. A day prior, it announced that February’s derivatives daily average volume grew 24 per cent year on year to 1.3 million contracts. Shares of SGX closed S$0.03 or 0.3 per cent lower at S$9.30 on Monday, before the data was released.
SG Local News
SGX to Offer Interest Rate Derivatives on Singapore, Tokyo Benchmarks
Singapore Exchange (SGX Group) will launch short-term interest rate futures linked to the Singapore Overnight Rate Average (Sora) and Tokyo Overnight Average Rate (Tona) for hedging and trading fluctuations in interest rates.
SGX Group said in a statement on Monday (Mar 11) that three-month Sora and Tona Futures contracts are targeted to be launched in the second half of this year, subject to regulatory approval.
Currently, SGX has long-term interest rate futures – 10-year full-sized and mini Japanese Government Bond futures, which have attracted diverse international market participants.
Keppel Data Centre Fund to Buy Upcoming Data Centre in Japan
Keppel Data Centre Fund II (KDCF II), which is managed by Keppel Limited, has inked a framework agreement with Mitsui Fudosan Co for the proposed forward purchase of a data centre currently under development in western Tokyo.
Keppel did not provide the purchase cost in a media statement on Monday (Mar 11) for its first data centre project in Japan.
Under the agreement, the fund will work exclusively with Japanese-listed property player Mitsui Fudosan on the acquisition of the freehold purpose-built data centre, which has a planned gross floor area of more than 300,000 square feet.
Singapore Startup to Invest €3.2 Billion in Italy Chips Factory
Semiconductors startup Silicon Box will invest €3.2 billion ($3.5 billion) in Italy to build a chip factory in the north of the country, Industry Minister Adolfo Urso said Monday.
“Recent global upheavals highlight the need to build a more resilient supply chain for semiconductors in Europe,” Urso told reporters. The chiplet production plant is expected to generate 1,600 jobs at full capacity.
The announcement involving Singapore-based Silicon Box came after the government failed to persuade US-based chip-maker giant Intel Corp, which has a market capitalization of about $186 billion, to invest in Italy. Silicon Box closed a $200 million financing round in January, bringing its valuation to more than $1 billion. The government did not immediately clarify where the funding will come from.
As Swiftonomics Sweeps Through Singapore, Small Businesses Say Concerts a Boon and a Bane for Them
Swiftonomics has swept through Singapore after the American pop star performed six sold-out shows here, but for small businesses, the spoils are not equally shared.
While many have thrived in Taylor Swift's presence — among them hotels and retailers that sell clothing and accessories popular with Swifties, there were also some that felt a swifter fall in business, especially for those located around the National Stadium where the concert was held.
Minister of Community, Culture and Youth Edwin Tong had said in Parliament on Monday (March 4) that Swift’s concerts were expected to bring economic benefits that would outweigh the size of the grant given to her promoter.
Economists have estimated large gains for hospitality-related businesses like airline companies, hotel chains and retail stores.
At the same time, there have been questions posed by commentators online about whether the spoils will trickle down to the small businesses or the man on the street.
Two River Valley Sites Offered for Sale, to Yield up to 960 Units Near Great World City
The government has put up two residential sites for tender in River Valley Green near Great World City, with one including a serviced apartment component, under its current Government Land Sales (GLS) programme.
The smaller plot, on the confirmed list, can yield about 380 private housing units on a site area of 9,291.1 square metres (sq m) with maximum gross floor area (GFA) of 32,519 sq m.
The larger plot – Parcel B – is available under the Reserve List and will only be released for sale if it receives an offer of a minimum price that is acceptable to the government and if there is sufficient market interest.
Comments