To The Moon

Market Snapshot

Singapore stocks opened higher on Thursday. STI rose 0.5%; ST Engineering up 4%; DFI Retail Group up 3%; DBS up 1%; Nio fell 3%.

Stocks in Focus

$ST Engineering(S63.SI)$: The group on Wednesday announced that it won new contracts valued at S$4.7 billion in Q2 of this year. These comprise S$1.5 billion from the commercial aerospace segment, S$1.5 billion from the defence and public security segment and S$1.7 billion from the urban solutions and satcom segment. Shares of ST Engineering closed down 2.13 per cent or S$0.18 at S$8.27 before the news.

$Mapletree PanAsia Com Tr(N2IU.SI)$: The manager of MPACT said on Wednesday that it will be selling two office buildings in Japan for 8.7 billion yen (S$78.7 million). These buildings are Abas Shin-Yokohoma, which will be divested at 3.3 billion yen, and TS Ikebukuro Building, which will be sold for 5.4 billion yen. The consideration represents a 1.7 per cent premium against the aggregate purchase price of 8.6 billion yen. Units of MPACT ended flat at S$1.28 on Wednesday before the announcement.

$Mapletree Log Tr(M44U.SI)$: The manager of MLT announced on Wednesday that its distribution per unit (DPU) for Q1 ended June fell 12.4 per cent to S$0.01812, from S$0.02068 in the same corresponding period a year prior. Distributable income also declined 11.3 per cent to S$92 million in Q1, from S$103.7 million in the same year-ago period amid higher borrowing costs. The distribution will be paid out on Sep 10, after the record date on Jul 31. Units of MLT ended 0.8 per cent or S$0.01 up at S$1.21, before the results were posted.

$DigiCore Reit USD(DCRU.SI)$: The manager of the Digital Core Reit on Wednesday posted a DPU of US$0.018 for the first half ended Jun 30. This was unchanged from the same period a year prior, even as the Reit’s distributable income rose 3.5 per cent to US$23.4 million, from US$22.6 million in H1 FY2024. The distribution will be paid on Sep 18, after the record date on Jul 31. Its units ended Wednesday 0.9 per cent or US$0.005 down at US$0.555, before the results were released.

$Sabana Reit(M1GU.SI)$: The manager of Sabana Reit reported a DPU of S$0.017 for the first half of its fiscal year ended Jun 30, up 26.9 per cent from S$0.0134 in the same year-ago period.The total income available for distribution grew to S$21.1 million, up 26.8 per cent from S$16.6 million in the same year-ago period. However, with the retention of around 10 per cent of distributable income – to fund costs incurred including those related to the internalisation of its manager function – the final distribution amount declared per unit is S$0.017. The counter closed at S$0.41, up S$0.01 or 2.5 per cent on Wednesday, before the news. 

$OUEREIT(TS0U.SI)$: OUE Reit reported a DPU of S$0.0098 for H1 ended Jun 30, up 5.4 per cent from S$0.0093 in the corresponding year-ago period. The growth reflects effective capital management and the resilience of its diversified Singapore portfolio, its manager said in a Wednesday evening bourse filing. Distributable income stood at S$54.3 million, 5.9 per cent higher than H1 2024’s S$51.3 million. Its units closed flat at S$0.31 on Wednesday, before the announcement.

$CNMC Goldmine(5TP.SI)$: The group on Wednesday announced that it expects significant year-on-year net profit improvements for its first half ended June. This comes as a preliminary review of its financials shows significant improvements, attributable to higher realised prices for gold and silver as well as increased production output at some of its plants. The company will post its earnings on or before Aug 14. The counter finished Wednesday 3.3 per cent or S$0.015 higher at S$0.475. 

$ST Group Food(DRX.SI)$: The company on Wednesday said it plans to liquidate its indirect UK subsidiary, GCTea Outlets 2B, which currently operates a food and beverage outlet under the Gong Cha brand in the country. This comes as part of its plans to exit from the Gong Cha Brand in the UK, as the unit has been loss-making and is in a net liabilities position as at end December 2024. The counter finished Wednesday unchanged at S$0.145.

SG Local News

Capital Inflows Spark Hunt for Value in Singapore’s Stock Market

Singapore’s S$5 billion ($3.9 billion) push to revive its stock market is prompting investors to look beyond pricey bank shares and find value in overlooked sectors as capital starts flowing in.

Small and mid-cap stocks should draw investor attention through year end as disbursements from the city-state’s Equity Market Development Program start, according to JPMorgan Chase & Co. A nascent rotation into sectors like industrials, property and communications could also gain momentum, with money managers betting such firms will benefit from lower interest rates.

On Monday, the Monetary Authority of Singapore announced an initial S$1.1 billion allocation to three asset managers and funds to strengthen local equity research in efforts to enhance market liquidity and broaden participation. The momentum will likely add to Singapore’s record rally this year, as easier monetary policy and economic growth prospects push the benchmark Straits Times Index to fresh highs.

SingPost Directors Quizzed About Future Strategies and CEO at AGM

National postal service provider Singapore Post’s board was pressed by shareholders at its annual general meeting (AGM) on Wednesday (Jul 23) for more information about the path forward as its search for a new chief executive officer drags on.

Meanwhile, chairman Simon Israel, at his last SingPost AGM before stepping down, disclosed that the decision of divesting SingPost Centre, the flagship headquarters building in Paya Lebar, now lies with the reconstituted board, which will review whether the property is non-core to the group and is to be sold.

He and other directors were quizzed at the listed firm’s 33rd AGM held at Suntec Singapore about the reset strategy that shareholders have been looking forward to since they approved the divestment of the Australian logistics business Freight Management Holdings for A$1 billion (about S$845 million) in March.