SG Morning Call｜Plans by Singapore Banks to Broaden Product Providers, Offerings Under SRS Framework Shelved
Market Snapshot
Singapore stocks opened higher on Friday. STI up 0.6%, SGX up 1%, Nio up 0.9%, SIA up 0.6%, DBS up 0.5%.
Stocks to Watch
$CSE Global(544.SI)$: The technology solutions provider on Friday said its subsidiary has commenced legal proceedings in Texas in the US, to recover US$6 million paid to a customer under a bank’s counter standby letter of guarantee. In the event the group fails, CSE Global said there may be an impact on its financial performance for the financial year ending December 2024. The counter closed on Thursday S$0.005 or 1.1 per cent lower at S$0.46.
$SAM Holdings(9G2.SI)$: In response to queries from the Singapore Exchange, the troubled healthcare provider said there was no guarantee that the company can generate “significant” revenue and profitability. This comes after the group was earlier this month flagged for uncertainties over keeping afloat. Shares of SIAMH ended flat at S$0.055, after the response was issued on Thursday.
SG Local News
Singapore’s Factory Output Rises 8.5% in November, Below Estimates
Singapore’s factory output grew 8.5% on year in November, outpacing the previous month’s growth of 1.2%. This came as output in the key electronics sector surged, though gains were offset by the volatile biomedical manufacturing sector, data from the Singapore Economic Development Board showed on Thursday (Dec 26).
The month’s performance fell short of private-sector economists’ expectations, who had predicted a 9.7% expansion in a Bloomberg poll.
Excluding the volatile biomedical manufacturing sector, industrial production was up 13% year on year (yoy), accelerating from October’s 0.4% growth.
Step Aside, Banks; SGX’S Biggest Gainer Surges over 500% in 2024
The Singapore market was among the top performers in the region this year. Much of the gain has been ascribed to the three local banks, whose combined weightage of more than half of the Straits Times Index (STI) helped lift the benchmark index to a 17-year high. DBS Group Holdings, in particular, was up by two-fifths.
Besides the three banks, many other key STI component stocks, including $SGX(S68.SI)$, $Singtel(Z74.SI)$, Sats and Hongkong Land, rose between 20% and 30% year-to-date. The best-performing STI component stock was $YZJ Shipbldg CNY(SO7.SI)$, which gained around 80%.
Plans by Singapore Banks to Broaden Product Providers, Offerings Under SRS Framework Shelved
The Competition and Consumer Commission of Singapore (CCCS) has halted its review of a proposed Supplementary Retirement Scheme (SRS) framework following the withdrawal of a joint application by DBS, OCBC, and UOB to implement changes.
The proposed framework, announced in November 2023, sought to streamline the onboarding and management of SRS product providers and their offerings, potentially expanding the range of products available to help individuals grow their retirement savings.
If implemented, the framework was expected to increase competition by allowing more financial institutions to offer SRS products, broadening the options for investors to grow their retirement funds.
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