SG Morning Call | Singapore Stocks Opened Flat on Friday; OUE Reit Prices S$180 Million in Green Notes Due 2031 at 3.9%

TigerNews SG09-20

Market Snapshot

Singapore stocks opened flat on Friday. STI was unchanged; OUE Reit rose 3%; TalkMed rose 1.2%; SingPost rose 1%; Nio rose 2%.

Stocks to Watch

OUE Real Estate Investment Trust (OUE Reit): The Reit priced S$180 million in fixed-rate green notes due 2031 at 3.9 per cent, said the manager on Thursday. Net proceeds from this issuance will refinance or fund eligible green projects. DBS and OCBC are the joint lead managers and bookrunners, while the latter is also the sole global coordinator for the notes and the green finance adviser to the issuer. Units of OUE Reit closed S$0.005 or 1.5 per cent lower at S$0.32, before the announcement.

TalkMed Group: Discussions on a potential acquisition of a stake in TalkMed are still in the preliminary stages and there is no guarantee that a transaction will take place, said the tertiary healthcare services provider on Thursday. The mainboard-listed company said it would update shareholders when it becomes aware of any material developments, and that they should refrain from taking any action regarding its shares. The counter closed S$0.005 or 1.2 per cent lower at S$0.40, before the announcement.

Trading halt: Thai Beverage Public Company requested a trading halt on Friday morning, pending the release of results from its extraordinary general meeting. The counter closed flat at S$0.525 on Thursday. Raffles Education also called for a trading halt this morning, pending the release of an announcement. It closed flat at S$0.046 on Thursday.

SG Local News

DBS sees wealth fees doubling by 2027 as the rich head to Asia

DBS Group Holdings aims to double fees from wealth management by 2027 as more of the world’s affluent investors shift their assets to Asia.

DBS’s income from servicing rich clients rose to more than S$2 billion last year, doubling from 2015. It expects the same pace of increase in half that period as well-heeled people and family offices from various parts of the world head to Asia to park their money, said Shee Tse Koon, head of consumer and wealth banking at DBS.

Singapore swap rates set to narrow gap with US as MAS shift seen

Singapore’s unusual approach to monetary policy will give traders a chance to profit from a narrowing gap between the local currency and US dollar interest-rate swaps.

The difference between two-year overnight indexed swap rates in the two currencies is near the tightest level in more than a year, allowing traders to profit from receiving fixed-rate payments in the greenback and paying in Singapore dollars. That trade looks set to become even more profitable as the Monetary Authority of Singapore (MAS) gets closer to its own version of policy easing, following the Federal Reserve’s pivot to rate cuts.

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