Market Snapshot
Singapore stocks opened lower on Thursday. STI fell 0.4%; Sats fell 6%; SIA fell 0.7%; OCBC fell 0.6%; DSB fell 0.4%.
Stocks in Focus
OCBC: The bank announced on Thursday that it has priced £1 billion (US$1.4 billion) in aggregate principal amount of floating rate covered bonds due 2029. The covered bonds will bear interest at the compounded daily Sterling Overnight Index Average rate, plus 0.48 per cent per annum payable quarterly in arrear. The bonds are expected to be issued on Aug 26 and listed on the Singapore Exchange (SGX) on Aug 27. Shares of OCBC ended at S$30.94 on Wednesday, S$0.01 or 0.03 per cent lower.
Sats: The company on Wednesday posted a S$75.1 million net profit for the first quarter, up 6 per cent from S$70.9 million in the year-ago period. The increase in net profit was partially due to lower interest expense. Shares of Sats closed 0.2 per cent or S$0.01 higher at S$4.77 before the results were announced.
Kimly: The Catalist-listed coffee shop operator on Wednesday proposed a transfer to the SGX mainboard. It said that being on the mainboard will serve to elevate the group’s corporate profile, enhance its visibility among a wider investor base, including institutional and international investors, and improve access to capital and strategic opportunities. Shares of Kimly ended flat at S$0.39 on Wednesday.
SG Local News
Singapore to Offer Tax, Visa Incentives for Fund Sector to Rival Hong Kong
Singapore will introduce tax exemptions on profits earned by fund managers and make it easier for investment professionals to obtain visas as it seeks to head off growing competition in the asset management sector, the central bank said on Wednesday.
The Monetary Authority of Singapore and the finance ministry plan to exempt from tax investment profits earned by fund managers from managing certain funds, including those of single family offices. More details will be announced in the 2027 budget.
MAS also said it would support hedge funds "committed to establishing or deepening their presence in Singapore" through an investment programme.
DBS Working on Succession Plan for Long-Serving Chairman Peter Seah, Bloomberg News Reports
DBS Group, Singapore's biggest bank, is working on a succession plan for its long-time Chairman Peter Seah, Bloomberg News reported on Wednesday, citing people familiar with the matter.
Seah, who has led the bank for more than 16 years, has fulfilled his responsibilities in guiding the lender since joining the board in 2009 and becoming chairman in 2010, the report added.
A DBS spokesperson told Reuters that Seah remains the non-executive chairman of DBS Group Holdings, but did not comment on the chairman search.
OCBC Prices £1 Billion Floating Rate Covered Bonds Due 2029
OCBC has priced £1 billion (S$1.7 billion) in aggregate principal amount of floating rate covered bonds due 2029, it announced on Thursday (Aug 20).
The covered bonds will bear interest at the compounded daily Sterling Overnight Index Average (Sonia) rate, plus 0.48 per cent per annum payable quarterly in arrear.
The Sonia rate is the average of the interest rates that banks pay to borrow the pound sterling from other financial institutions and institutional investors overnight.