Singapore’s stock market experienced a week of moderate activity, with corporate developments and sector performance driving much of the attention. The Straits Times Index (STI) concluded the week at 4,531.36, reflecting a gain of 8 points, or 0.17%. Trading volume saw a slight dip, averaging around $1.3 billion daily, likely influenced by the approaching holiday season.
Financial institutions presented a mixed performance. OCBC showed strength, rising by 2.3%, and UOB also saw gains, increasing by 1.6%. DBS, however, experienced a slight decrease, dipping by $0.04.
Globally, market sentiment remained relatively stable. Wall Street demonstrated positive momentum throughout the week, fueled by expectations of a potential interest rate cut. Market forecasts indicated an 86% likelihood of a 25-basis-point rate reduction. The S&P 500 increased by 0.3%, the Dow Jones Industrial Average rose by 0.5%, and the Nasdaq Composite saw a gain of 0.9%.
Corporate news and strategic moves were key drivers of market activity in Singapore.
Low Keng Huat: The company received a privatization offer at $0.72 per share, causing its stock price to surge to match the offer price. The proposed deal hinges on securing at least 90% acceptance from shareholders, excluding those affiliated with the concert party.
Manulife US REIT: The REIT unveiled plans for a strategic shift, aiming to diversify its portfolio by increasing its exposure to industrial, residential, and retail assets. The company is seeking unitholder approval for several key initiatives:
- Disposing of up to three assets valued at a total of up to US$350 million.
- Acquiring new assets worth up to US$600 million.
- An Extraordinary General Meeting (EGM) is scheduled for December 16 to discuss these proposals. The REIT is also benefiting from extended deadlines and relaxed covenants related to its MRA concessions.
Cordlife: The company disclosed that it is facing a civil claim amounting to at least $5.4 million. The claim is linked to 109 cord blood units.
There were no changes made to the constituents of the STI this week. However, CapitaLand Ascott Trust and Sheng Siong have been added to the STI reserve list. They join the existing reserve list which includes Keppel REIT, NetLink NBN Trust, and Suntec REIT. The reserve list comprises companies that would potentially replace existing STI constituents should any changes occur.
The FTSE ST Industrials Index has demonstrated robust performance, delivering a total return of 36% from January to November. When dividends are included, the total return increases to 40.7%. The sector has also witnessed a positive trend in consensus target prices, which have risen by 33% year-to-date. Furthermore, the sector has attracted significant net institutional inflows, totaling $269 million. Key financial metrics for the sector include a median Return on Equity (ROE) of 9.2% and a median Price-to-Earnings (P/E) ratio of 16.8 times. Hong Leong Asia has been a standout performer in the sector, achieving a year-to-date gain of 141% on inflows of $53 million.
The week also saw the debut of two Initial Public Offerings (IPOs).
UltraGreen.ai: The company’s shares initially traded at US$1.52, representing a 4.8% increase from its IPO price. However, the stock subsequently closed the week at US$1.44.
Infinity Development: The company was listed on the Catalist board and closed its first day of trading at S$0.39, remaining unchanged from its IPO price.
