Market Snapshot
Singapore stocks opened lower on Thursday. STI down 0.2%, SingPost up 2%, Olam up 1.7%, Nio up 1%.
Stocks to Watch
Koh Bros: Its wholly owned subsidiary bagged a S$313.9 million contract from the Land Transport Authority to design and construct a bus depot in Lorong Halus. Works will begin on Jan 6, 2025, and are expected to be completed by 2029. With the addition of the bus depot contract, on top of other recently secured orders, the group currently has an order book of about S$899.7 million, said the company on Wednesday. The counter closed 2.3 per cent or S$0.001 higher at S$0.044 on Tuesday.
ComfortDelGro: The land transport operator is among several taxi and ride-hailing operators that will be raising their platform fees from Jan 1, 2025. On Tuesday, ComfortDelGro said the platform fee for its app Zig will be adjusted by S$0.30 to S$0.50, depending on the distance travelled and waiting time. Shares of ComfortDelGro ended S$0.01 or 0.7 per cent down at S$1.44, after the announcement.
Cromwell Reit EUR: Following the completion of a 280 million euro (S$395.5 million) acquisition of the Reit’s manager, the Reit will be renamed Stoneweg European Reit from Jan 2, 2025, said the manager on Tuesday. Stoneweg Icona Capital Platform, along with its subsidiaries and associates, is now the new sponsor and substantial unitholder of Cromwell E-Reit. Its units ended unchanged at 1.59 euros, prior to the news.
Trading halt: Investment holding company Accrelist Ltd requested a trading halt on Thursday morning, pending the release of an announcement. The counter ended Tuesday’s holiday-shortened trading session flat at S$0.038.
SG Local News
S&P Maintains 'Negative' View on SingPost's Credit Risks Following CEO, CFO's Termination
S&P Global Ratings is keeping its "negative" view on SingPost's credit risks after the company terminated three of its top executives over the weekend.
The development, says S&P in its Dec 24 note, "casts uncertainty over the company's future."
"Given SingPost's record of frequent turnover in management, the latest departures increase the company's credit risks," says S&P.
The ratings agency had on Dec 5 put its 'BBB' long-term issuer credit rating on SingPost and its 'BB+' issue rating on the subordinated perpetual securities that the company guarantees on CreditWatch with negative implications.
SingPost’s Proposed A$1B Sale of Australian Business ‘on Track’, Says Buyer Pacific Equity Partners
The proposed divestment by SingPost of its Australian logistics business is not affected by SingPost’s recent firing of its three senior executives, the buyer Pacific Equity Partners (PEP) told The Business Times on Tuesday (Dec 24).
The question of whether the transaction could be scuppered by the sacking that included group chief executive officer Vincent Phang has been raised since the announcement on their sudden exits.
A PEP spokesperson told BT in response to queries: “PEP can confirm that the proposed acquisition of Freight Management Holdings (FMH) is on track as announced on Dec 2.”
Koh Brothers Eco Unit Wins S$313.9 Million LTA Contract to Build Bus Depot
Catalist-listed engineering solutions provider Koh Eco was awarded a S$313.9 million contract by the Land Transport Authority (LTA) through its wholly owned subsidiary, Koh Brothers Building & Civil Engineering Contractor (KBCE).
Under the contract commencing on Jan 6, KBCE will be designing and constructing a multi-storey bus depot at Lorong Halus.
This includes the design, construction, supply, installation, testing and commissioning of the architectural, civil and structural, building services, mechanical and electrical systems, as well as bus depot equipment.
Bangladesh Probes Singaporean Tycoon Alam, Straits Times Reports
Bangladesh authorities are investigating Singaporean billionaire Saiful Alam Masud for alleged financial crimes, including money laundering, the Straits Times reported on Wednesday. He denied wrongdoing.
Lawyers representing the 64-year-old tycoon, who was born in Bangladesh, stated that allegations of money laundering involving Alam, his family, and his businesses in Bangladesh were made by local private media outlets and are part of a targeted smear campaign, according to the newspaper.
Alam is confident he has conducted his businesses in “a proper and legitimate manner,” the lawyers said.
Alam is the founder and chairman of the S. Alam Group, a conglomerate operating business including steel, cement, food, polypropylene, power, transport and real estate.
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