SG Morning Call | STI Gained 0.6%; Singapore Airlines Fell over 5%; NIO Sank 4%; UOB Rose 2%

Market Snapshot

Singapore stocks opened higher on Monday. STI gained 0.6%; Singapore Airlines fell over 5%; NIO sank 4%; UOB rose 2%.

Stocks to Watch

$Singapore Airlines( C6L.SI)$ (SIA): The national carrier on Friday posted a 59 per cent fall in net profit to S$290 million for the second quarter ended Sep 30, compared to the corresponding period in the previous year. Revenue for the period rose 2 per cent to S$4.8 billion. Lower profit was mainly due to weaker operating performance, lower net interest income and loss on disposal of aircraft, spares, and spare engines versus a gain last year. Its counter ended on Friday at S$6.45, down S$0.04 or 0.6 per cent, before the announcement.

$Sembcorp Industries(U96.SI)$: The energy and urban development company said on Friday that it intends to sell its wholly owned unit Sembcorp Environment to Indonesian energy company SBT Investment 2 for S$405 million. The group attributed its proposed disposal to its intention to focus on growth in the energy sector. Sembcorp Industries’ shares ended Friday unchanged at S$5.01, before the announcement.

$Seatrium(5E2.SI)$: The offshore and marine specialist on Monday said that its net order book for the nine-month period ended September swelled to S$24.4 billion, with deliveries stretching to 2031. The company also noted in a separate announcement that it has signed a letter of intent with a Japanese construction company for a heavy lift vessel project, which is expected to be awarded in the first quarter of 2025. Shares of Seatrium closed 2 per cent or S$0.04 higher at S$2 on Friday.

$Venture Corp(V03.SI)$: It posted a 4.7 per cent fall in net profit to S$60.6 million for the third quarter of 2024 from the previous quarter. Revenue was down 3.9 per cent quarter on quarter at S$689.7 million. This was largely due to softer demand in the life sciences, lifestyle consumer, and test and measurement instrumentation technology domains, it said on Friday. Shares of Venture Corp closed at S$13.65 on Friday, up 0.2 per cent or S$0.02, before the announcement.

$Sri Trang Agro-Industry(NC2.SI)$: The rubber group posted a net profit of 517.3 million baht (S$20 million) for its third quarter ended Sep 30, reversing its net loss of 410.2 million baht in the corresponding year-ago period. The higher profit was driven by the larger sales volume and average selling prices of natural rubber, said the group on Friday. Shares of the mainboard-listed company closed at S$0.82 on Friday, up 5.8 per cent or S$0.045, before the announcement.

$SBS Transit(S61.SI)$: The bus and train operator’s net profit rose 1.7 per cent on year to S$18.2 million for the third quarter of FY2024 ended September. The group said on Friday that while its operating profit was lower, a smaller tax expense helped to cushion the hit. Revenue also rose 2.1 per cent to S$396.1 million for the quarter, on higher average fare and ridership for rail. SBS Transit shares closed flat at S$2.47 on Friday, before the update.

SG Local News

Singapore's DBS Eyes Malaysian Bank Stakes in Expansion Push

Singapore's biggest lender DBS Group Holdings Ltd is exploring expanding into Malaysia with potential acquisitions of stakes in banks in its Southeast Asian neighbour, including in one of Malaysia's smallest banks by assets, two sources said.

DBS is exploring a purchase of Singapore state investor Temasek's 29.1% stake in Alliance Bank Malaysia Bhd, said the two sources with knowledge of the matter, a slice currently valued at about $460 million. Temasek is biggest shareholder in DBS with a 28.9% stake, according to LSEG data.

Other options for expanding into Malaysia include buying Kuwait Finance House's Malaysian retail banking assets, worth more than $500 million and which have been put up for sale, one of the sources said.

Singapore and China Looking to Work Together in New Areas

As the highest-level annual bilateral forum between Singapore and China enters its 20th year, both nations are looking to collaborate in new and emerging areas related to sustainability and the digital front, said Deputy Prime Minister Gan Kim Yong.

“We want to exchange views and ideas of how we can work together to move towards zero carbon in this transitional process,” he told reporters.

“Associated with this will be emerging green-economy related businesses - whether it's a carbon business, whether it's green financing (or) green investments. These will be projects that we are discussing.”

Mr Gan added that both governments will also discuss digital payment systems, digital trade documentation, and how to support each other’s digitalisation journey.