SG Morning Call｜Singapore Stocks Head to New High on Wednesday; Frencken Rose 4.2% after Posting 29.3% Rise in Q3 Profit

Market Snapshot

Singapore stocks opened higher on Wednesday. STI up 0.2%, CLI up 1.4%, Frencken up 4.2%, Koh Eco up 3.5%, Seatrium up 2%.

Stocks to Watch

CapitaLand Investment (CLI) : The real asset manager is buying a 40 per cent stake in Singapore-headquartered real estate investment manager, SC Capital Partners, for S$280 million. CLI on Wednesday said it intends to acquire the remaining 60 interest in phases over the next five years and invest at least S$524 million in SC Capital’s fund strategies to support the growth of its platform. Shares of CLI ended Tuesday S$0.02 or 0.7 per cent higher at S$2.81. 

Keppel DC Real Estate Investment Trust (Keppel DC Reit) : It has closed its private placement at S$2.09 apiece with 334.9 million new units issued. On Wednesday, the Reit manager said the placement was upsized, thus bringing the size of the equity fund raising up to about S$1.1 billion, from about S$985 million previously. Keppel DC Reit ended Monday 0.5 per cent or S$0.01 lower at S$2.19, before it called for a trading halt on Tuesday morning. The counter resumes trading on Wednesday.

Koh Brothers Eco Engineering : The group won a a S$77.6 million contract by Sport Singapore (SportSG) via its wholly owned subsidiary, Koh Brothers Building & Civil Engineering Contractor. This recent contract, in addition to other recently secured new orders since Jun 30 this year, is estimated to lift the group’s order book to an approximate S$585.7 million till 2027. Koh Brothers Eco’s shares closed flat at S$0.029 on Tuesday before the news.

GuocoLand : The property developer led a top bid for a private housing site for about 400 units in Faber Walk, beating two other groups at the government tender’s close on Tuesday. This was a S$349.9 million bid placed by GuocoLand, TID Residential and Intrepid Investments, which translates to a land rate of about S$900 per square foot per plot ratio for the Clementi area plot. Shares in GuocoLand closed flat at S$1.47 after the news.

Frencken Group : The semiconductor player reported a 29.3 per cent increase in profit to S$9.2 million for the three months ended Sep 30, from S$7.1 million the year before. Revenue for the period was up 7.7 per cent at S$198.6 million, from S$184.4 million in the previous year. This increase in revenue was driven by higher contribution from Frencken’s mechatronics division, said the group on Tuesday. Its shares closed 1.7 per cent or S$0.02 higher at S$1.20, before the announcement.

SG Local News

Hanwha to exercise compulsory acquisition rights after stake in Dyna-Mac crosses 90%

South Korean conglomerate Hanwha plans to exercise its right of compulsory acquisition for the remaining shares in Dyna-Mac it does not yet own.

This after Hanwha has secured a total of 92.22% of Dyna-Mac shares as at Nov 19.

Under local bourse rules, an offeror can exercise the compulsory acquisition option if its stake crosses 90%.

Singapore’s IPO market set to grow with strong REIT sector in 2025

Singapore’s IPO market is expected to grow robustly in 2025, particularly in the real investment estate trust (REIT) sector, amidst favourable regulatory initiatives and stabilising economic conditions.

In its commentary, Deloitte said the city-state is attracting more interest in REITs as global interest rates stabilise, with investors drawn to its strong framework and reliable, income-generating market.