Market Snapshot
Singapore stocks opened higher on Wednesday. STI rose 0.5%; SIA rose 0.2%; Singtel rose 0.8%; Seatrium rose 1.3%; UOB rose 1%.
Stocks to Watch
Singtel : Z74: The telco’s regional data centre business, Nxera, is partnering Malaysian telco TM to develop data centres, starting with a data centre in Johor. Singtel is also part of a consortium, along with US investment firm KKR, which will invest S$1.75 billion in data-centre provider ST Telemedia Global Data Centres. Shares of Singtel closed 1.2 per cent or S$0.03 higher at S$2.58 on Tuesday.
Singapore Airlines : C6L(SIA): The group reported a 10.2 per cent year-on-year increase in passenger traffic in May 2024, as demand for air travel remained robust. SIA and Scoot carried a total of 3.2 million passengers over the month, which is 14.3 per cent higher than the year before. Shares of SIA closed 0.5 per cent or S$0.03 higher at S$6.76 on Tuesday, before the announcement.
Seatrium, : 5E2 Mooreast : 1V3: A Moorest unit is acquiring a 1.1 million square foot facility from a Seatrium subsidiary. The proposed S$13.5 million acquisition is expected to commence operations by the end of 2024, subject to approval by JTC. It will quadruple Mooreast’s production capacity to meet expected market demand for floating offshore renewable forms of energy. Shares of Seatrium were down 9.6 per cent or S$0.16 at S$1.51, while shares of Mooreast closed 4.5 per cent or S$0.005 lower at S$0.106 on Tuesday, before the announcement.
Sabana Industrial Real Estate Investment Trust : M1GU(Sabana Reit): The Reit has priced S$100 million of sustainability-linked bonds due 2029 at 4.15 per cent. The net proceeds will be used for capital expenditures, such as acquiring new properties and asset enhancement initiatives, as well as refinancing existing term loans, said the manager on Tuesday. Units of Sabana Reit closed 1.4 per cent or S$0.005 lower at S$0.345, before the news.
SG Local News
SIA Group Passenger Traffic Rises 10.2% in May
SINGAPORE Airlines (SIA) Group reported a 10.2% year-on-year increase in passenger traffic in May 2024, as demand for air travel remained robust.
During the month, Singapore Airlines and Scoot carried 3.2 million passengers in total, 14.3 per cent higher than a year ago, the group said on Tuesday (Jun 18) as it reported its operating results for May. Passenger capacity increased by 12.6 per cent.
As a result, group passenger load factor stood at 86.1 per cent, with SIA and its low-cost airline arm Scoot posting monthly passenger load factors of 85.6 per cent and 88.1 per cent, respectively.
New Private Home Sales Dive 78.7% Year on Year in May Amid Market Slump
NEW private home sales dwindled in May, falling to the lowest level seen for the month of May since record-keeping began in June 2007. They were also down nearly 80 per cent year on year.
No major projects were marketed last month, when the seasonal mid-year lull was compounded by sales sagging in recent months.
Data released by the Urban Redevelopment Authority (URA) on Tuesday (Jun 18) showed that developers sold 221 condo units in May, down 78.7 per cent year on year from the 1,039 units moved a year ago.
Shell to Acquire Singaporean LNG Firm Pavilion Energy from Temasek
Shell has agreed to buy Singaporean liquefied natural gas (LNG) company Pavilion Energy from global investment company Temasek in a move the oil major said will strengthen its leadership position in LNG, according to statements on Tuesday.
The announcement confirmed a Reuters' report last Thursday saying Singapore's Temasek was finalising the Pavilion Energy sale to Shell in the coming days in a deal worth hundreds of millions of U.S. dollars.
KKR, Singtel to Invest $1.3 Billion in Data-Center Firm STT GDC
A consortium of KKR & Co. and Singapore Telecommunications Ltd. agreed to invest S$1.75 billion ($1.3 billion) for a minority stake in Asian digital infrastructure provider ST Telemedia Global Data Centres.
The KKR-led group plans to make the investment in the closely held data center company known as STT GDC via redeemable preference shares and warrants, the companies said in a statement Tuesday, confirming an earlier report by Bloomberg News. Upon the exercise of the warrants in full, the consortium will invest an additional S$1.24 billion.
Following the investment, KKR will own about 14.1% in STT GDC, while Singtel, as the telecom group owned by wealth fund Temasek Holdings Pte. is known, will hold 4.2%, according to a separate statement.
Mooreast Acquires Facility from Seatrium for S$13.5 Mil
Mooreast Holdings announced that its wholly-owned subsidiary Mooreast Asia is acquiring a 98,919 sqm facility from a subsidiary of Seatrium for a consideration of S$13.5 million. Upon successful acquisition, Mooreast’s production capacity in Singapore to serve the fast-growing floating offshore renewable sector will quadruple.
Mooreast has been granted an option to purchase 60 Shipyard Crescent. It expects to complete the proposed acquisition and commence operations at the new facility by the end of 2024. The consideration for the new facility will be funded through internal resources.
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