To The Moon

Singapore stocks fell this week, with the STI down 1.1% in 4 trading days. The market closed on Thursday for the Deepavali public holiday. investors are still assessing the news of a potential fiscal boost from Beijing, while remaining cautious ahead of U.S. elections next week.

In terms of star stocks, SIA fell 0.5%; DBS, OCBC, and UOB fell about 1%; Singtel fell 3.4%; Seatrium and SGX fell 2.1%; Keppel fell 1.7%; Sembcorp fell 5.5%; ST Engineering fell 3.8%; while NIO rose 2.9%; Genting Singapore rose 2.4%; Olam jumped 13%; Hongkong Land surged 14%.

Market News

SGX Starts Trading in BYD, Alibaba, Tencent, HSBC and BOC Via Depository Receipts

Investors in Singapore can now gain direct exposure to five mega-cap companies listed in Hong Kong and tap into more opportunities to diversify their portfolios through new Singapore Depository Receipts (SDRs).

The Singapore Exchange (SGX) announced on Wednesday (Oct 30) that it will launch Hong Kong SDRs together with Phillip Securities, enabling investors to “express thematic views on evolving global trends” in artificial intelligence, electric vehicles and financial markets.

SGX’s new Hong Kong SDR, available for trading from Oct 30, will cover Alibaba, Tencent, BYD, HSBC and Bank of China – representing the technology, consumer discretionary and financial sectors. 

The SDR is an unsponsored depository receipt that provides holders with a beneficial interest in an underlying security. Each SDR can be converted into the underlying security through an issuance and cancellation process on a one-to-one basis.

Hongkong Land Jumps as New Strategy Expected to Boost Profit

Hongkong Land Holdings Ltd. shares surged after the biggest landlord in the city’s financial district unveiled a new strategy that it expects will spur profit and shareholder payouts.

The Singapore-listed company will focus on commercial property management and forgo residential development in a move that will eventually see it set up real estate investment trusts. It aims to expand its assets under management from $40 billion to $100 billion by 2035, much of which will be owned by third-party capital. It estimates that the new model will double profits and dividends, a statement showed late Tuesday.

The company aims to raise $10 billion in the next 10 years by disposing of some assets and moving others into vehicles, said Chief Financial Officer Craig Beattie. An estimated $4 billion will come from potential REIT listings or private vehicles with its premium commercial properties. The remaining $6 billion will be generated by selling 50 existing projects — mostly residential — along with some mass-market shopping malls in mainland China.

Australian Consumer Regulator Sues Singtel’s Optus over Alleged Sales Misconduct

The Australian Competition and Consumer Commission (ACCC) has filed court proceedings against subsidiary Optus Mobile, said Singtel in a bourse announcement on Thursday (Oct 31).

The court proceedings, filed in the Federal Court of Australia, alleged that Optus Mobile acted unconscionably in its dealings with about 429 customers. Optus is reviewing the matters raised and will respond to the claims.

According to ACCC’s press release, Optus had allegedly sold mobile phones and plans to vulnerable customers, which include those with diminished cognitive capacity and learning disability.

NIO Delivers 20,976 Vehicles in October, Up 30.5% YoY

NIO delivered 20,976 vehicles in October 2024, representing an increase of 30.5% year-over-year. The deliveries consisted of 16,657 vehicles from the Company’s premium smart electric vehicle brand NIO, and 4,319 vehicles from the Company’s family-oriented smart electric vehicle brand ONVO. Cumulative deliveries reached 619,851 as of October 31, 2024.

In October 2024, the production and delivery of the ONVO L60 have been steadily ramping up. As of October 31, 2024, ONVO operated 166 ONVO Centers and ONVO Spaces across 60 cities, while also providing users with seamless access to 584 NIO Power Swap Stations in China. ONVO will continue to expand its sales, service and power networks to serve a growing user base and drive long-term growth.

Singapore's Wilmar Third-Quarter Profit Slumps 36% on Weak China, Sugar Segment

Singapore-listed Wilmar International reported a 35.7% fall in third-quarter core net profit on Wednesday, weighed down by weaker China and sugar division operations.

The company, one of the world's largest food producers, said core net profit was $208.1 million for the three months ended Sept. 30, compared with $323.6 million a year ago.

Wilmar faced a labour dispute at its Australian sugar maker unit, Wilmar Sugar and Renewables, which was resolved in September.

Singapore Disinflation Taking Hold as Growth Recovers, MAS Says

Singapore’s disinflation trajectory is “well-entrenched” and the economy’s recovery is seen extending into 2025, the central bank said in its latest review, while cautioning on growth and upside risks to prices.

Core inflation should end the year around 2% while near-term growth has been stronger than anticipated, the Monetary Authority of Singapore said in its twice-yearly macroeconomic review published Monday. MAS core inflation is expected to average around the mid-point of its 1.5-2.5% forecast range in 2025.

“The risks to Singapore’s inflation outlook are more balanced compared to three months ago,” MAS said in the report. “Significant uncertainty remains in the global economy and risks are, on balance, tilted towards lower global growth.”

The Week Ahead

DBS, OCBC, UOB, SIA, and more are set to announce their Q3 2024 earnings next week.

Source: SG investors.io