Market Snapshot
Singapore stocks opened lower on Friday. STI fell 0.6%; NIO fell 5.5%; Singtel fell 5%; Wilmar fell 4%.
Stocks to Watch
$Singtel(Z74.SI)$ : The Australian Competition and Consumer Commission (ACCC) filed court proceedings against Singtel’s subsidiary Optus Mobile over allegations of inappropriate sales conduct. The ACCC is pursuing penalties, consumer redress, a compliance programme and costs from Optus, said the telecommunications giant in a Thursday bourse announcement. The company said that while it could not “determine the quantum of penalties, if any”, it has taken disciplinary action against staff who engaged in misconduct. Singtel shares closed 1.6 per cent or S$0.05 lower at S$3.13 on Wednesday, before the news.
$Wilmar Intl(F34.SI)$ : The agribusiness group’s net profit for the third quarter ended Sep 30, 2024, dropped 19 per cent to US$254.4 million from US$313.9 million in the same period last year on weaker contributions from its China operations and sugar division, the group said in a Wednesday bourse filing. This brought net profit for the first nine months of its 2024 financial year to US$834 million, down 3.6 per cent on the year from S$864.8 million. Revenue for Q3 was largely steady, up 0.4 per cent at US$17.7 billion, as lower commodity prices offset higher sales volumes. With its net gearing ratio having improved to 0.81 times from 0.88 times in FY2023, the group is “cautiously optimistic” that its performance for the rest of the year will be “satisfactory”. The counter closed at S$3.20, down S$0.02 or 0.6 per cent, before the announcement.
$First Reit(AW9U.SI)$ : The Reit logged a 6.5 per cent fall in distribution per unit (DPU) for the third quarter ended Sep 30, 2024, to S$0.0058 from S$0.0062 in the same period last year. DPU for the nine months year-to-date slipped 4.3 per cent on the year to S$0.0178 from S$0.0186, the Reit’s manager said on Wednesday. The declines were due to foreign currencies depreciating against the Singapore dollar. The Reit is aiming for developed markets to make up more than half of its portfolio by FY2027. It is looking to divest non-core assets or mature properties to recycle the capital for strategic acquisition opportunities in such markets. Units of First Reit closed flat at S$0.265, before the announcement.
SG Local News
Ringgit Set for Biggest Monthly Decline Since 2015 Amid US Election Jitters
Malaysia’s currency is on course for its worst month in more than nine years as investors scale back on risk assets amid concerns over the US election.
The ringgit is down more than 6 per cent against the US dollar in October, putting it on pace for its biggest monthly loss since August 2015. The ringgit traded at 4.39 per dollar on Oct 30.
The ringgit has also weakened against the Singapore currency and is down about 3 per cent in October. It closed at 3.2993 per Singdollar on Oct 30.
DBS May Finance the Shutdown of Steel Plants in India and China
South-east Asia’s largest lender DBS could potentially be financing the decommissioning of steel plants in India and China, said Lim Wee Seng, group head of energy, renewables and infrastructure of the bank’s institutional banking division.
If DBS eventually decides to participate in such transactions, it would be expanding its scope of transition financing to include more assets in hard-to-abate sectors facing the risk of becoming stranded.
Earlier this year, the bank had adjusted its policy to accommodate the financing of the early shutdown of coal-fired power plants, and is already working on a deal in Indonesia.
Singapore, Canada Funds Mull Backing $1.8 Billion Asset Shuffle
Canada’s largest pension fund and Singapore’s GIC Pte are in advanced talks to back PSG Equity’s plan to transfer $1.8 billion of company stakes into a new vehicle designed specifically for this type of asset-shifting.
PSG plans to move roughly a half-dozen investments from several older funds into a new one known as a continuation fund, gaining more time to earn fees and profits from the assets, according to people familiar with the matter.
$(NIO.SI)$ $(STI.SI)$
Comments