SG Morning Call | Singapore Stocks Opened Higher on Tuesday; SIA Group Passenger Capacity up 10.8% in August

Market Snapshot

Singapore stocks opened higher on Tuesday. STI rose 0.3%; SIA rose 0.3%; DBS rose 0.2% 1%; SingPost fell 1%; Q&M Dental fell 1.8%;

Stocks to Watch

Singapore Airlines : The group recorded growth of 10.8 per cent for passenger capacity and 7.7 per cent for passenger traffic in its August operating update released on Monday. The national carrier and its budget arm Scoot flew 3.3 million passengers for the month. SIA shares closed 0.3 per cent or S$0.02 lower at S$6.50 before the announcement.

DBS Group Holdings Ltd. saw sales of its semi-liquid fund products to Greater China spike this year and expects demand to remain high as investors boost allocation for alternative assets. The year-to-date sales of semi-liquid funds to Greater China investors grew 300% compared with a year ago, Carol Wu, DBS head of private banking in North Asia, said in an interview. The products — some targeting double-digit returns with risks laid out to investors — are managed by asset managers including Apollo Global Management Inc., KKR & Co.and Brookfield Asset Management, the bank said.

CapitaLand Investment Ltd. is in advanced talks to buy a minority stake in French luxury resort chain Club Med SAS from its Chinese owner Fosun International Ltd., according to people with knowledge of the matter. The real estate investment firm, part of Temasek Holdings Pte-owned conglomerate CapitaLand Group Pte, is seeking to acquire from 20% to 30% in the hotelier for several hundred million euros, the people said, asking not to be identified because the information is private. The Singaporean firm has emerged as the likeliest buyer for the stake after outbidding other rivals including private equity firms, the people said.

Q&M Dental Group : Its subsidiary Acumen Diagnostics temporarily ceased operations at a lab after its licence lapsed on Sunday. Acumen’s board of directors said it will assess and review the consequential financial impact on its earnings per share and net tangible assets per share for the current fiscal year ending Dec 31. The counter closed 1.8 per cent or S$0.005 higher at S$0.28 on Monday, before the news.

SG Local News

Singapore key exports jumps 10.7% in Aug, extending previous month’s surge

Singapore’s key exports in August extended the previous month’s rally on the back of a surge in electronics shipments, even as both electronics and non-electronics exports rose.

Non-oil domestic exports (NODX) rose by 10.7 per cent year on year in August, extending the surprise 15.7 per cent jump in the previous month, data from Enterprise Singapore (EnterpriseSG) showed on Tuesday (Sep 17).

SGX RegCo to review how and when it queries listed companies

Singapore Exchange Regulation (SGX RegCo) will look into how and when it queries listed companies, said chairman Tan Cheng Han and chief executive officer Tan Boon Gin, as part of efforts to “remove frictions” for such businesses.

“We need to balance our role in ensuring that material information is disclosed, while enabling companies to take value-focused actions that are then correctly valued through uninterrupted trading,” they said in a letter on Monday (Sep 16) evening.