Market Snapshot
Singapore stocks opened lower on Wednesday. STI fell 0.3%; NIO rose 8%; Seatrium fell 4%; Genting Singapore fell 3%; Singtel fell 0.7%; DBS and OCBC fell 0.5%; UOB fell 0.2%.
Stocks in Focus
Prudential: Its new business profit rose to US$1.26 billion for its first half ended Jun 30, from US$1.12 billion in the year-ago period. This marked a 12 per cent increase on a constant exchange rate basis and an actual exchange rate basis. The insurer on Wednesday said the growth came amid a 5 per cent increase in annual premium equivalent sales and margin expansion. The counter ended Tuesday flat at US$9.91.
OCBC: The bank has priced US$1 billion worth of fixed rate subordinated notes under its US$30 billion global medium term note programme. Net proceeds from the issuance will be used for general corporate purposes of OCBC, it said on Wednesday. The lender’s shares closed Tuesday 0.8 per cent or S$0.14 lower at S$16.70.
Keppel, Seatrium: Asset manager Keppel announced on Tuesday it will start arbitration proceedings against Seatrium for a S$68.4 million claim related to Brazil’s corruption crackdown, Operation Car Wash. Keppel said the sum was due from Seatrium under the terms of an indemnity, as Seatrium in 2022 made provisions of S$82.4 million to indemnify Keppel against claims related to the operation. Keppel shares ended Tuesday at S$8.35, down 0.6 per cent or S$0.05. Seatrium closed at S$2.33, down 0.4 per cent or S$0.01.
Singapore Post (SingPost): SingPost introduced a new corporate service for US-bound parcels after suspending standard postal services on Monday for commercial items sent there. This comes ahead of Friday’s end to the so-called de minimis exemption that avoided duties for packages valued under US$100. The new SingPost service operates on a “delivery duty paid” model, where duties and taxes are calculated at the destination and billed back to the sender. SingPost said retail customers may continue to use Speedpost Express, with shipments of letter mail unaffected. Shares of SingPost ended Tuesday lower by 1 per cent or S$0.005 at S$0.48.
Wing Tai: The property developer’s net loss narrowed to S$71.1 million for its second half ended June, down from S$99.2 million in the year-ago period. Revenue jumped 64.4 per cent to S$117.5 million from S$71.5 million, amid higher contributions from development properties, the group said on Tuesday. Shares of Wing Tai closed Tuesday at S$1.40, down 2.1 per cent or S$0.03.
SG Local News
Singapore Manufacturing Output Outstrips Estimates with 7.1% Climb in July; Economists Mixed on H2
Factory output gained 7.1% on year in July, similar to June’s downward-revised figure and far exceeding estimates, data from the Economic Development Board showed on Tuesday (Aug 26).
While economists continue to expect a weaker performance in the second half of the year, some were more hopeful after the latest data was released.
In a Bloomberg poll, the median estimate by private-sector economists was a 0.9% expansion.
Singapore's Keppel Files for $53 Million Claim Against Seatrium over Brazil Corruption Case
Singapore's Keppel has initiated arbitration proceedings against local shipbuilder Seatrium for a S$68.4 million ($53.33 million) claim related to a corruption crackdown in Brazil, the companies said on Tuesday.
In 2022, Seatrium had made provisions worth S$82.4 million to pay Keppel against claims related to the crackdown, named Operation Car Wash.
Seatrium noted the obligation to pay Keppel expired in February of this year and there were no binding and legally enforceable agreements signed with the Brazilian authorities before that.
Earlier this year, Seatrium had said it will pay 728.9 million Brazilian real ($134.45 million) to the authorities in the South American country, as part of leniency agreements.
Sea Overtakes DBS as Southeast Asia’s Most Valuable Company
Singapore’s Sea Ltd. has reclaimed its title as Southeast Asia’s most valuable publicly traded company, surpassing DBS Group Holdings Ltd. after a 300% comeback rally powered by its e-commerce arm Shopee.
Shares of the internet company rose 1.1% in New York for a market capitalization of $111 billion. Hours later, regional banking giant DBS finished Tuesday 0.6% lower in Singapore for a valuation of $110.3 billion — officially ceding the top spot to Sea.
Sea’s e-commerce arm Shopee has cemented its leadership in Southeast Asia where more consumers are going online to buy anything from iPhones to daily groceries. In August, Sea reported record sales that topped estimates, signaling it’s succeeding in fending off hard-charging rivals including ByteDance Ltd.’s TikTok and Alibaba Group Holding Ltd.’s Lazada. Shares of Sea have more than quadrupled since the start of last year as investors grew more convinced of its strength in the region.
