SG Morning Call | Singapore Stocks Open Higher on Monday; SingPost Gains 3%; NIO Rises 2%

Market Snapshot

Singapore stocks opened higher on Monday. STI rose 0.6%; SingPost rose 2.6%; Boustead rose 2.5%; NIO rose 2%; AEM rose 1.5%; Genting Singapore rose 1.3%; Singtel rose 1%; UOB rose 0.8%; DBS rose 0.7%.

Stocks to Watch

$SingPost(S08.SI)$: The national postal service provider has officially proposed to sell its Australian business at an agreed enterprise value of A$1 billion (S$870 million). Some proceeds from the deal will be used to repay borrowings, such as its Australian dollar-denominated debt, as well as the possible issuance of a special dividend in the future, said SingPost on Monday. Shares of SingPost ended Friday flat at S$0.58.

$NIO Inc.(NIO.SI)$: The Chinese electric vehicle maker delivered 20,575 vehicles in November this year, up 28.9 per cent from the same month last year. As at Nov 30, its cumulative deliveries stood at 640,426, the company said in a business update on Sunday, adding that it recently celebrated its 10th anniversary on Nov 25. Shares of Nio rose 0.5 per cent, or US$0.02, to close at US$4.46 last Friday, ahead of the announcement.

$Boustead(F9D.SI)$: A Boustead Singapore-led joint venture is expected to put Como Orchard, a freehold hotel and retail building, on the market with an asking price of about S$680 million. Located at 28 and 30 Bideford Road, the 18-storey property is a redevelopment of the old Thong Sia Building. The property is owned by Bideford House, in which Boustead Singapore’s subsidiary Boustead Projects holds a 50 per cent stake. Shares of Boustead Singapore closed at S$0.995 on Friday, up S$0.005 or 0.5 per cent, before the announcement.

$Dasin Retail Trust(CEDU.SI)$: Dasin Retail Trust requested for a trading halt on Monday morning. Its units ended 6.45 per cent or S$0.002 higher at S$0.033 on Friday.

SG Local News

SingPost to Divest Australia Business for A$1 Billion

Singapore Post (SingPost) has entered into a share purchase agreement to divest its Australian business at an enterprise value of A$1 billion (S$870 million). 

The enterprise value translates into A$775.9 million in cash and generates an expected gain on disposal of about S$312.1 million, subject to adjustments determined at the time when the deal is completed. 

The buyer is Pacific Equity Partners, an Australia-headquartered private equity fund. 

Nio Delivers 20,575 Vehicles in November; Marks 10th Anniversary

Chinese electric vehicle (EV) maker Nio delivered 20,575 vehicles in November, a 28.9 per cent increase from the same month last year.

The latest figure was slightly lower than the 20,976 vehicles delivered in October.

Of the total, 15,493 vehicles were from Nio’s flagship premium EV line, while 5,082 came from its family-oriented Onvo brand.

As at Nov 30, 2024, cumulative deliveries stood at 640,426, the company said in a business update on Sunday (Dec 1), adding that it recently celebrated its 10th anniversary on Nov 25.

DBS Buys Back Nearly S$15M of Its Shares

Over the five trading sessions from Nov 22 to 28, institutions were net buyers of Singapore stocks, resulting in a net institutional inflow of S$188 million, reversing the net outflow of S$38 million observed over the five preceding sessions up to Nov 21.

The five sessions also saw 22 primary-listed companies conduct buybacks for a total consideration of S$44.8 million, up from the S$27.6 million in the preceding five sessions.

On Nov 28, DBS bought back 350,000 shares at an average price of S$42.04 per share for a total consideration of S$14.7 million. This represented 0.01 per cent of its issued shares (excluding treasury shares).