SG Morning Call | Singapore Stocks Open Higher on Tuesday; Yangzijiang Shipbuilding Jumps 6%

Market Snapshot

Singapore stocks opened higher on Tuesday. STI rose 0.2%; SIA, OCBC and UOB rose 0.2%; Seatrium rose 0.7%; Nio rose 4.2%; Yangzijiang Shipbuilding rose 6.3%.

Stocks to Watch

$CapLand IntCom T(C38U.SI)$ (CICT): The trust’s H1 distribution per unit was 2.5 per cent to S$0.0543, from S$0.0530 in the corresponding period a year ago. Based on its results filing on Tuesday, half-year revenue was about S$792 million, up 2.2 per cent from S$774.8 million in H1 FY2023. Units of CICT closed about 1 per cent or S$0.02 higher at S$2.10 on Monday.

ESR-Logos Real Estate Investment Trust : J91U 0% (ESR-Logos Reit): The trust has priced S$100 million perpetual capital securities at 6 per cent. This is in addition to the S$74.8 million perps that has been issued previously, it said on Tuesday. Net proceeds from the latest tranche will be used to finance the acquisition of a 51 per cent interest in a high-spec manufacturing plant in Singapore. The counter closed on Monday flat at S$0.255.

$ESR-REIT(J91U.SI)$: The real estate and healthcare group has sunk into the red with a net loss of S$96.1 million for its first half ended Jun 30, compared with a net profit in the previous corresponding period. This was mainly due to share of losses contributed by 25.2 per cent-owned investee company Gemdale. The group’s shares closed 1 per cent or S$0.01 higher at S$1.03 on Monday, before its results release.

$YZJ Shipbldg SGD(BS6.SI)$: The shipbuilder on Monday posted a net profit of 3.1 billion yuan (S$553.7 million) for the six months ended Jun 30, representing a year-on-year increase of 77.2 per cent. Revenue had gone up 15.3 per cent to 13 billion yuan, attributed to the strong performance of its shipbuilding business. Its shares ended at S$2.38, down 4 per cent or S$0.10, before the release of its financial results.

$PropNex(OYY.SI)$: The mainboard-listed real estate agency’s net profit for the first half of the fiscal year fell 13.8 per cent to S$19 million from S$22.1 million the year before. The decline comes as revenue dipped 5.1 per cent amid lower commission income from project marketing services, said the group on Tuesday. Shares of PropNex ended Monday S$0.01 or 1.3 per cent higher at S$0.785.

$Food Empire(F03.SI)$: Its first-half net profit fell 11.3 per cent to US$23.6 million amid lower profit contributions from its Russia market amid short-term price disruptions, said the food and beverage manufacturer on Monday. Prior to the release of the results, its shares closed at S$0.985 up 1 per cent or S$0.01. 

SG Local News

Singapore Q2 GDP up 2.9% Y/Y, Matching Advance Estimate

Singapore's economy grew 2.9% in the April-June quarter from a year earlier, matching the official advance estimate and above market expectations, government data showed on Tuesday.

The trade ministry said it had adjusted its GDP growth forecast range for 2024 to 2.0% to 3.0%, from 1.0% to 3.0% previously.

Economists in a Reuters poll forecast growth of 2.7% for the second quarter.

On a quarter-on-quarter, seasonally adjusted basis, GDP expanded 0.4% in the April to June period, also matching the advance estimate.

Singapore Lowers Full-Year NODX Forecast, Expects Growth of 4-5%

Singapore has lowered its full-year exports outlook to a range of 4 to 5 per cent, from 4 to 6 per cent previously.

Non-oil domestic exports (NODX) fell 6.4 per cent year on year in Q2, following the 3.4 per cent decrease in Q1, data from Enterprise Singapore (EnterpriseSG) showed on Tuesday (Aug 13).

Key downside risks remain for the NODX forecast, including a weaker-than-expected recovery in the second half of 2024, said the agency.

Singapore Ex-Minister’s Corruption Trial to Begin September 10

Singapore will start the trial against its former transport minister S. Iswaran next month, in the latest update to the biggest political scandal to hit the city-state.

The first trial dates have been set for Sept 10-13, according to a spokesperson for the Attorney-General’s Chambers.

Iswaran is facing dozens of charges in the corruption case, which comes as Singapore prepares for a general election that’s due to be held by November 2025.