Market Snapshot
Singapore stocks opened higher on Monday. STI up 0.1%; UOL up 4%; Seatrium, Sembcorp down 1%.
Stocks in Focus
Wilmar Intl: The agribusiness company on Friday said it foresees “certain indirect impact” on its operations from the ongoing Middle East conflict, but believes its current structure is sufficient to manage the situation. The group said contributions from the region account for a single-digit share of total revenue. Shares of Wilmar fell 0.3 per cent or S$0.01 to close at S$3.84 on Friday, before the announcement.
CapLand IntCom T: The trust announced the sale of its 100 per cent interest in Asia Square Tower 2 to IOI Properties for an agreed property value of nearly S$2.5 billion on Monday. Separately, it announced that it has entered into a sale and purchase agreement to fully acquire Paragon for S$3.9 billion. Units of CICT ended flat at S$2.39 on Friday, before a trading halt was called on Monday morning.
CDL HTrust: The company disclosed on Friday in a response to shareholders’ questions that the ongoing Middle East conflict has resulted in a negative impact on the portfolio’s overall performance. However, the managers maintained that the impact has not been material to date. The group had “modest cancellations, while the pace of new bookings has shown some moderation”, the managers said. Units of the stapled security ended flat at S$0.835 on Friday.
Centurion: The living accommodation provider on Monday said it has entered the specialised “key worker accommodation” segment with the purchase of an operational property in Western Australia. The region accounts for about two-thirds of national mining production and produces more than 90 per cent of the country’s iron ore, supporting 13,000 jobs. Most of this workforce is “fly-in, fly-out”, spending a few weeks near the job site before returning home, and requires accommodation, said Centurion. Shares of the company rose 0.6 per cent or S$0.01 to close at S$1.68 on Friday.
SG Local News
Singapore’s Model for Success Faces Test in a Less Global Era
Singapore’s growth is poised to moderate as its export-driven model is strained by geopolitical tensions and a fragmenting global trading system, though it could draw support from opportunities in the Middle East, according to Bloomberg Intelligence.
Growth in the Asian financial hub is expected to ease to about 2.5% this year before settling into a 2%–3% range over the longer term, BI analysts led by Sarah Jane Mahmud said in a report on Monday. Still, the city is projected to outpace many developed peers as economies grapple with fallout from the Iran war. Singapore will update its economic outlook from its earlier forecast of 2%-4% in May.
“Singapore has prospered on the back of burgeoning trade and foreign-investment flows, yet it now faces a less positive environment as protectionism increases and big countries bring some investment home for national-security reasons,” BI said. “Authorities are responding to these risks, and we believe Singapore will continue to grow moderately faster than the developed-world average in coming years.”
Singapore's CapitaLand Trust to Divest Asia Square Tower 2 in $1.95 Billion Deal
Singapore's CapitaLand Integrated Commercial Trust said on Monday it has agreed to sell Asia Square Tower 2, a commercial development in Marina Bay precinct, to Malaysia's IOI Properties for S$2.48 billion ($1.95 billion).
The 773,000-square-foot property housing office, hotel and retail space, completed in 2013, was valued at S$2.25 billion as of December 31, the company said.
