Market Snapshot
On Thursday, September 24, Singapore stocks opened nearly flat. UMS rose 1.5% in early trading, Kep Infra Tr gained 1%, AEM SGD fell 2.4%, UOL dropped over 1%, JMH USD declined 0.7%, while Singtel, OCBC Bank and DBS edged lower.
Stocks in Focus
The following companies saw new developments that may affect trading of their securities on Thursday (Sep 24):
Keppel Real Estate Investment Trust (Reit) : The manager of the trust on Wednesday said that it has entered an agreement to sell T Tower – a freehold Grade A office building in Seoul – to a real estate fund based in South Korea, valued at 348.8 billion won (US$255.8 million). This price represents a 37.2 per cent premium to the property’s purchase price upon acquisition in April 2019, and a 7.4 per cent premium to its valuation as at Aug 31 in local currency terms. Up to S$25 million of net sale proceeds will go to unit buybacks on the open market following the Reit’s Q3 update, subject to prevailing market conditions and applicable laws and regulations. The divestment is expected to be completed by the fourth quarter this year. The counter ended 1.2 per cent or S$0.01 higher at S$0.86 on Wednesday, before the news.
Olam Group : The group on Thursday said its wholly owned operating group, olam food ingredients (ofi), completed the issuance of US$300 million of perpetual hybrid capital instruments. They were issued by ofi Treasury BV and subscribed for by Melati Designated Activity Company, a third-party special purpose investment vehicle funded through committed bank facilities. Proceeds from the issuance will be used by ofi to refinance existing indebtedness and for general corporate purposes. Shares of Olam ended 1 per cent or S$0.01 lower at S$0.965 on Wednesday.
Multi-Chem : The company on Thursday said its wholly owned subsidiary M.Tech has received a formal written notification from a key vendor saying it has suspended all order acceptances, marketing and business development activities, and commercial communications with the unit with immediate effect until further notice. This is expected to have a material adverse impact on the consolidated net tangible assets per share and earnings per share of the group for the financial year ending Dec 31. Business generated from products supplied by the key vendor accounted for between 5 and 10 per cent of the group’s total consolidated revenue for H1 this year. The counter ended 24.1 per cent or S$0.58 higher at S$2.98 on Wednesday.
Thai Beverage : The beverage producer on Thursday announced organisational changes and a series of senior executive appointments, effective Oct 1. The new structure is intended to foster closer collaboration across ThaiBev’s Product Groups, Role of Center – which oversees and coordinates the Group’s overall operations and strategic direction – and markets. This is to strengthen ThaiBev’s competitiveness and create sustainable growth. ThaiBev’s shares ended 1.2 per cent or S$0.005 higher at S$0.435 on Wednesday.
Nio : The Chinese electric vehicle giant will reportedly close its sales and service hub in Cologne, Germany, at the end of September. This will be the second of the company’s three German hubs to shut this month, according to a media report by Electrive. The closure will leave Nio with one hub left in Munich. Shares of Nio closed flat at US$3.72 on Wednesday.
SG Local News
SGX enhances disclosure rules to build a ‘value creation culture’ among issuers
Listed companies will be required to give investors a clearer view of how they pay top executives, manage dividends and engage shareholders under new disclosure rules taking effect from Jan 1, 2027.
Singapore Exchange Regulation (SGX RegCo) announced on Wednesday (Sep 23) that it is updating its listing rules to require enhanced disclosures on remuneration, dividend policies and investor relations. The changes are meant to “foster a value creation culture among listed issuers”, said the market regulator.
Most Singapore issuers have baseline standards in place, in line with the Code of Corporate Governance, but the new rules target specific communication gaps and are aimed at elevating disclosure quality.
Singapore core inflation picks up to 2.2% in August; analysts mixed on MAS response
Central bank watchers remain cautious on the prospect of Singapore tightening monetary policy, as inflation ticked up in August in line with estimates.
Consumer prices continued their upward creep for the third straight month as core inflation rose to 2.2 per cent, from 2 per cent in July, according to figures released on Wednesday (Sep 23).
Meanwhile, headline inflation – which includes accommodation and private transport costs – hit 2.3 per cent in August, up from 2.2 per cent in the month prior, as the increase in core inflation offset a smaller rise in car prices in the private transport segment.
