SG Morning Call | Singapore Stocks Open Higher on Tuesday; Yangzijiang Shipbuilding Jumps 9%

Market Snapshot

Singapore stocks opened higher on Tuesday. STI rose 0.8%; YZJ Shipbldg rose 9%; Keppel, Sats, Singtel, and UOB rose 1.3%; Sembcorp rose 1.1%; Seatrium rose 1%; OCBC rose 0.9%.

Stocks to Watch

$YZJ Shipbldg SGD(BS6.SI)$: The maritime vessel maker announced on Monday that it had secured another US$2.6 billion in shipbuilding contracts, taking its order wins to US$14.3 billion in the year to date. This follows the company’s quarterly business update on Nov 7, where it reported having secured US$11.6 billion worth of order wins in the year to date, exceeding its target of US$4.5 billion for the 2024 financial year. The group’s shares closed at S$2.43 on Monday, up 0.8 per cent or S$0.02, before the announcement. 

$CapitaLandInvest(9CI.SI)$: CapitaLand Malaysia Trust (CLMT), a subsidiary of CLI, has entered into a sale-and-purchase agreement to acquire a freehold automated logistics property in Selangor, Malaysia for RM180 million (S$54.2 million), according to CLMT’s manager on Monday. It added that the property, Elmina Logistics Hub, is expected to generate an annual gross rent of RM12.3 million, with a first-year gross yield of around 6.8 per cent. Elmina Logistics Hub will be fully let out for office and industrial purposes, with a fixed term of 10 years and an option to renew the lease for another two terms of five years each. Shares of CLI closed S$0.02 or 0.73 per cent higher at S$2.75, before the announcement.

$Dasin Retail Trust(CEDU.SI)$: It announced on Monday that it has filed an application under the Insolvency, Restructuring and Dissolution Act to restrain proceedings against it for six months. No resolution can be passed for the winding-up of the company, and no proceedings can be commenced or continued against it under the moratorium. The trust’s board also said a report has been lodged with the Commercial Affairs Department of the Singapore Police Force, the Monetary Authority of Singapore and Singapore Exchange Regulation in connection with certain documents discovered in the office previously occupied by Wang Qiu, former chief executive officer of its trustee manager who was fired on Feb 14. Units of Dasin Retail Trust closed at S$0.032 on Monday, down 3 per cent or S$0.001, prior to the announcement.

$Sembcorp Industries(U96.SI)$: Its wholly owned subsidiary, Sembcorp Power, has signed another long-term renewable energy power purchase agreement with Equinix to supply up to 58.5 megawatt peak (MWp) from its renewable energy portfolio. This brings the total contracted renewable energy capacity with Equinix to 133.5 MWp, said the group on Tuesday. The counter closed 1.2 per cent or S$0.06 higher at S$5.28 on Monday.

SG Local News

Singapore PMI up 0.2 Point in November, Echoes Improved Regional Factory Activity

Singapore’s overall factory activity rose in November, mirroring a region-wide improvement in manufacturing sentiment.

The Purchasing Managers’ Index went up to 51 last month, an improvement of 0.2 point from October, which registered a marginal dip, data from the Singapore Institute of Purchasing and Materials Management (SIPMM) showed on Monday (Dec 2).

A reading above 50 indicates expansion.

The electronics sector PMI came in at 51.6 in November, also marking a 0.2-point gain after briefly skidding the month before.

This marks the 15th month of expansion for the overall manufacturing sector, and the 13th month for the electronics one.

Yangzijiang Shipbuilding Bags US$2.6 Billion in Contracts

Maritime vessel maker Yangzijiang Shipbuilding said on Monday (Dec 2) that it has secured another US$2.6 billion in shipbuilding contracts, taking its order wins to US$14.3 billion in the year to date. 

The latest contracts are for 21 vessels: six units of liquefied natural gas dual-fuel 17,000 20-foot equivalent unit (TEU) containerships; six units of methanol dual-fuel 13,000 TEU containerships; four units of 39,000-dead weight tonnage (DWT) medium-range oil tankers; two units of 4,300 TEU containerships; and three units of 45,000-DWT bulk carriers. 

The orders are primarily scheduled for deliveries between 2027 and 2029, and will not have a significant impact on the group’s earnings for the financial year ending Dec 31, 2024, said the mainboard-listed company in a bourse filing. 

CapitaLand Malaysia Trust to Acquire Selangor Logistics Property for RM180 Million

CapitaLand Malaysia Trust (CLMT), a subsidiary of CapitaLand Investment : 9CI +0.73%, has entered into a sale-and-purchase agreement to acquire a freehold automated logistics property in Selangor, Malaysia, for RM180 million (S$54.2 million), the trust’s manager said on Monday (Dec 2).

The property, Elmina Logistics Hub, is a 40-metre-high, single-storey automated warehouse with a total built-up area of 14,866.67 square metres. 

It features an automated storage-and-retrieval system (ASRS) that employs cranes and robotics to automate the placement and retrieval of goods, the manager added.

JPMorgan Fined S$2.4 Million by MAS for Misconduct by Relationship Managers

JPMorgan Chase Bank has paid a S$2.4 million civil penalty to the Monetary Authority of Singapore (MAS) for its failure to prevent and detect misconduct by its relationship managers (RMs).

On Monday (Dec 2), MAS said that the RMs had provided clients with “inaccurate or incomplete disclosures” which resulted in these clients being charged spreads above bilaterally agreed rates for 24 over-the-counter bond transactions.

The transactions took place between November 2018 and September 2019.