Weekly | Why F & N Lead the Market this Week?
As of the close on Friday, $Straits Times Index(STI.SI)$ closed at 3,447.56 points, down 1.44% points last week.
During the last 5 trading days, $F & N(F99.SI)$, $Gulf TH SDR(TGED.SI)$, $OUEREIT(TS0U.SI)$, $ThaiBev(Y92.SI)$ and $Delta TH SDR(TDED.SI)$ are the top 5 weekly gainers, up 21.70%, 5.66%, 5.26%, 4.12% and 3.33% respectively.
$NIO Inc.(NIO.SI)$, $Sri Trang Agro(NC2.SI)$, $Olam Group(VC2.SI)$, $t PTTEP TH SDR(TPED.SI)$ and $Shangri-La HKD(S07.SI)$ are top 5 decliners of SGX stocks which market capital above S$1 Bln.
Below are key analyses of the TOP 5 gainers:
1. $F & N(F99.SI)$
Shares of Fraser and Neave surged significantly on Thursday, 18 July, following ThaiBev's announcement of a proposed share swap deal aimed at transforming the company into a dedicated food and beverage business. F&N saw a nearly 22% increase over the past week.
ThaiBev initiated a trading halt on Thursday, prior to market opening, to disclose the details of the share swap deal. The proposal involves transferring ThaiBev's entire 28.78% stake in Frasers Property to TCC Assets, a firm owned by the Sirivadhanabhakdi family.
The share swap is set to occur at an estimated exchange rate of 1.88 shares of Frasers Property for each share of F&N. This ratio is based on a negotiated price of S$1.89 per share of Frasers Property and S$3.55 per share of F&N, as stated by ThaiBev.
2. $Gulf TH SDR(TGED.SI)$
Thailand billionaire Sarath Ratanavadi, with a $10 billion fortune and founder of Gulf Energy Development, has announced a merger between his company, Thailand's third-largest energy group, Gulf Energy Development, and its affiliate telecom unit, Intouch Holdings, to create a $20.5 billion entity.
Gulf Energy Development (GULF) is a holding company that invests in a diverse portfolio, including conventional and renewable power generation and distribution businesses, natural gas supply and distribution, infrastructure development projects, and digital businesses. GULF is also one of Thailand’s largest private power producers, managing a portfolio of gas-fired and renewable power projects that supply both public clients, such as the Electricity Generating Authority of Thailand (EGAT), and private clients in the country’s main industrial zones. Additionally, GULF provides comprehensive management services to power projects within the group, from development and construction to post-commercial operation management.
3. $OUEREIT(TS0U.SI)$
OUE Real Estate Investment Trust (REIT) saw a rise of over 5% last week after Maybank Securities initiated coverage with a "Buy" rating and a price target of S$0.30.
According to OUE REIT's official website, OUE REIT Management Pte. Ltd., the manager of OUE Real Estate Investment Trust (formerly OUE Commercial Real Estate Investment Trust), announced that OUE REIT’s wholly-owned subsidiary, OUE REIT Treasury Pte. Ltd. (formerly OUE CT Treasury Pte. Ltd.), has successfully issued its inaugural S$250 million green notes at a 4.10% fixed rate, due in 2027. S&P Global Ratings has assigned a "BBB-" rating to the notes.
4. $ThaiBev(Y92.SI)$
Thai Beverage, through its indirect wholly-owned subsidiary InterBev Investment Limited (IBIL), has proposed a share swap with TCC Assets Limited (TCCAL), which will involve no cash outlay from either IBIL or ThaiBev.
Under the proposed share swap, IBIL will transfer its entire 28.78% shareholding in Frasers Property Limited (FPL) to TCCAL. The share swap will occur at a ratio of approximately 1.88 FPL shares for each F&N share. Upon completion, ThaiBev will no longer hold any interest in FPL.
"Our aim with the proposed share swap is to entrench our position as a stable and sustainable ASEAN leader and cement our pure-play status by exiting the property business," said Prapakon Thongtheppairot, Group CFO of ThaiBev. "It also enhances our ability to strengthen the collective potential of ThaiBev's non-alcoholic beverage segment and F&N's beverage and food brands to expand our reach in Southeast Asia," he added.
5. $Delta TH SDR(TDED.SI)$
Delta TH SDR's stock price rose last week. On 10 July, Delta Electronics, Inc. and EVE Energy Co., Ltd. signed a memorandum of understanding (MOU), witnessed by Dr. Liu Jincheng, founder and chairman of EVE Energy Co., Ltd., and Mr. Ko Chi-Hsiang, vice chairman of Delta, along with other senior executives from both companies. According to the MOU, EVE Energy Co., Ltd. and Delta will collaborate extensively in the global energy storage market, integrating their resources and strengthening cooperation in various areas such as battery cells, Battery Management Systems (BMS), and energy storage system projects.
Additionally, Delta Electronics announced its contribution to sustainable travel at Hobart Airport. Hobart Airport has made a significant step towards a greener future with the installation of new EV charging infrastructure. Delta Electronics is thrilled to be part of this exciting initiative.
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