SG Morning Call | Singapore Stocks Open Higher on Friday; NIO Falls 4%

Market Snapshot

Singapore stocks opened higher on Friday. STI rose 0.2%; SIA rose 0.5%; DBS rose 0.2%; Singtel fell 0.6%; Seatrium rose 0.6%; Nio fell 4.2%.

Stocks to Watch

$CapitaLandInvest(9CI.SI)$ (CLI): The real estate manager said on Thursday its chief executive officer of private equity real estate, Simon Treacy, will be stepping down from his role effective Oct 31 for “personal reasons”. The group’s CEO Lee Chee Koon will concurrently lead as CEO of private equity real estate. Meanwhile, Treacy will be senior adviser to Lee from Nov 1. Shares of CLI closed 0.7 per cent or S$0.02 higher at S$2.87, before the announcement.

$YZJ Shipbldg SGD(BS6.SI)$: The mainboard-listed shipbuilder said on Thursday that it is acquiring a 34 per cent stake in a wholly owned subsidiary of Japanese shipyard Tsuneishi Group, Tsuneishi Group (Zhoushan) Shipbuilding, for a consideration of 833.1 million yuan (S$158.3 million). The consideration will be paid in cash and will be funded from Yangzijiang’s internal resources. The counter closed 1.2 per cent or S$0.03 higher at S$2.48, before the news.

$Olam Group(VC2.SI)$: Its indirect 64.57 per cent-owned subsidiary, Olam Agri, has raised its takeover offer to acquire all shares in Namoi Cotton to A$0.75 cash per share, from A$0.70 per share. The new offer price is 11.9 per cent higher than the A$0.67 offered by Louis Dreyfus Company Melbourne, said Olam Agri on Friday. Shares of Olam closed 1.8 per cent or S$0.02 higher at S$1.14 on Thursday.

SG Local News

Latest Singapore 6-Month T-Bill Cut-off Yield Falls Slightly to 3.1%

The cut-off yield on the latest Singapore six-month Treasury bill (T-bill) fell to 3.1 per cent, auction results released by the Monetary Authority of Singapore on Thursday (Sep 12) indicated.

This is down from the 3.13 per cent offered in the previous six-month auction, that closed on Aug 29. 

Demand fell in the latest tranche. The auction received a total of S$13.4 billion in applications for the S$6.9 billion on offer, representing a bid-to-cover ratio of 1.95.

Singapore’s CapitaLand Shakes Up Leadership at Funds Unit

Singapore’s CapitaLand Investment Ltd. announced a leadership shakeup at its private funds division, as the real estate firm looks to rearrange units after a mixed set of earnings and tepid stock performance.

Simon Treacy, the chief executive officer of Private Equity Real Estate, will step down on Oct. 31, the company said in a statement on Thursday. He will take on the role of senior adviser to group CEO Lee Chee Koon and provide counsel to the firm’s private equity team on capital raising and investments effective from Nov. 1.

The private funds division, which currently houses the real estate and alternative assets units, will see the two merged into a single Real Assets platform led by group CEO Lee. Group Chief Operating Officer Andrew Lim will have responsibility for capital raising and product development.

Yangzijiang Shipbuilding to Take 34% Stake in Japanese Shipbuilder’s China Unit for 833 Million Yuan

Mainboard-Listed Yangzijiang Shipbuilding is acquiring a 34 per cent stake in a wholly owned subsidiary of Japanese shipyard Tsuneishi Group for 833.1 million yuan (S$158.3 million).

Announcing the joint venture agreement on Thursday (Sep 12), the Chinese shipbuilding group said that it will purchase the stake in Tsuneishi Group (Zhoushan) Shipbuilding through a private share allotment.

Tsuneishi Group, which was founded in 1903, is primarily in the shipbuilding business. Its business includes the construction of new ships, particularly bulk carriers, and it has the largest repair network in Japan.

After 17% Surge in Last Fiscal Year, Singapore’s Tax Revenue Expected to Rise at Slower Pace in FY24/25

After rising 17 per cent to a new high in the last fiscal year, Singapore’s tax revenue is expected to increase further this year – but more slowly, say tax specialists.

Harvey Koenig, partner, telecommunications, media and technology and tax at KPMG Singapore, said: “There is unlikely to be a significant jump in corporate tax collections next year, in view that the Ministry of Trade and Industry recently narrowed its gross domestic product growth forecast for 2024 to 2 to 3 per cent.”

He added that this forecast is being made amid downside risks, with geopolitical and trade developments possibly dampening business sentiment.