SG Morning Call | Singapore Stocks Open Higher; DBS Appointed as Singapore's Second Renminbi Clearing Bank

Market Snapshot

Singapore stocks opened higher on Tuesday. STI rose 0.02%; CSE Global rose 4%; DBS rose 1%; Yangzijiang Shipbuilding rose 0.6%; Keppel fell 0.5%.

Stocks in Focus

$Singapore Airlines(C6L.SI)$ (SIA): The national carrier recorded passenger traffic of 13.3 billion in November for the two airlines it operates, 2.6 per cent up from the year-ago period. This was slightly higher than the 2.2 per cent growth in passenger capacity reported by SIA and budget airline Scoot, the group said on Monday. The counter declined 0.2 per cent or S$0.01 to close at S$6.32 on Monday, before the announcement.

$CSE Global(544.SI)$: The global electrification and automation solutions provider clinched three major contracts worth US$124.6 million in the US. The contracts are for the design and manufacture of power distribution centres, plus the integration of complex electrical and control systems, as well as equipment for the liquefied natural gas market, the group said on Monday. The contracts are scheduled to run between 2026 and 2028. Shares of CSE Global closed at S$0.905, down S$0.02 or 2.2 per cent, before the news.

$ST Engineering(S63.SI)$: Its mobility services business is among the companies that have been awarded contracts by the Land Transport Authority (LTA) for 660 new electric buses that will replace diesel buses nearing the end of their statutory lifespan. ST Engineering Mobility Services, in partnership with Chinese state-owned manufacturer CRRC, clinched contracts worth S$35.7 million for 100 single-deck buses and S$79 million for 150 double-deck buses, LTA said on Monday. The counter finished Monday 1 per cent or S$0.08 lower at S$8.26, before the news.

SG Local News

Singapore Homebuying Frenzy Hits Lull in Absence of New Projects

Singapore’s new private home sales slowed sharply in November with a lack of major projects released, a month after a surge in buying reignited concerns that the government may take fresh steps to cool the market.

Developers sold about 325 new homes last month, Urban Redevelopment Authority figures showed Monday. It’s a large drop-off from October, when more than 2,400 units were snapped up.

The lull is likely to persist into December as developers traditionally shun launches during the holiday period. But many are already revving up for a slew of developments to be released in the new year, which could extend the buying frenzy seen in recent months.

Singapore and China Sign 27 Agreements to Deepen Bilateral Ties

Singapore and China signed 27 memorandums of understanding and agreements to boost cooperation across financial and capital-markets connectivity, food security, and other key sectors, according to a statement by the Singapore Prime Minister’s Office.

The deals were signed during the 21st Joint Council for Bilateral Cooperation in Chongqing on Monday, which was co-chaired by Singapore Deputy Prime Minister Gan Kim Yong and Chinese Vice Premier Ding Xuexiang.

Among the agreements are the appointment of DBS Bank Ltd. as the second renminbi clearing bank in Singapore and the launch of a pilot program to enable Singapore travelers to use electronic yuan for merchant payments in China, the statement said. The Industrial and Commercial Bank of China’s Singapore branch was the first clearing bank.

DBS Appointed as Singapore's Second Renminbi Clearing Bank

$DBS Bank(D05.SI)$ was appointed as the second renminbi (RMB) clearing bank in Singapore, one of 27 agreements signed during an annual bilateral meeting held in southwest China's Chongqing on Monday.

The Singapore branch of the Industrial and Commercial Bank of China (ICBC) was appointed as the first clearing bank for RMB in Singapore by the People's Bank of China in 2013.

The Monetary Authority of Singapore, the city state's central bank, said in a statement on Monday that the appointment of DBS as an RMB clearing bank will "support further growth of the offshore RMB market in Singapore, and facilitate the use of RMB for trade, investment and other economic activities in line with regional needs".

LTA Awards over S$300 Million in Contracts for 660 Electric Buses, Including to BYD

The Land Transport Authority (LTA) has awarded six contracts for 660 new electric buses, which will be progressively deployed for passenger service from end-2026, it said on Monday (Dec 15).

These contracts, collectively worth S$322.2 million, are for 360 single-deck and 300 double-deck buses from four companies. This marks LTA’s first large-scale purchase of double-deck buses.

ST Engineering Mobility Services, partnered with Chinese state-owned manufacturer CRRC, was awarded S$35.7 million for 100 single-deck buses and S$79 million for 150 double-deck buses.

BYD (Singapore) was contracted to provide 160 single-deck buses at S$71.3 million and S$50 double-deck buses at S$34.5 million.