SG Morning Highlights | CDL Acquires Majority Stake in Shanghai Mixed-Use Site

Moomoo News SG wrote a column · Nov 4, 2024 09:08

SG Morning Highlights | CDL Acquires Majority Stake in Shanghai Mixed-Use Site

Good morning mooers! Here are things you need to know about today's Singapore markets:

● Singapore shares opened higher on Monday; STI up 0.35%

● Hospitality S-Reits' RevPAR Mostly Resilient as Tourism Activity Normalises

● Manufacturing Sector Leads BDA Adoption Among Singaporean SMEs

● Stocks to watch: Genting Singapore, City Developments, Keppel Reit, etc.

● Latest share buy back transactions

- Moomoo News SG

Market Snapshot

Singapore shares opened higher on Monday. The $FTSE Singapore Straits Time Index (.STI.SG)$ rose 0.35 percent to 35367.90 as at 9:06 am.

Advancers / Decliners is 75 / 57, with 49.81M securities worth S$72.97M changing hands.

Breaking News

Hospitality S-Reits' RevPAR Mostly Resilient as Tourism Activity Normalises

In Q3 2024, Singapore's hospitality-focused real estate investment trusts (S-Reits) demonstrated stable performance as tourism normalized post-pandemic. The sector maintained a resilient revenue per available room (RevPAR), despite the high base from strong growth in the previous year. Notably, CapitaLand Ascott Trust saw an 8% year-over-year rise in gross profit, and similar positive trends were observed in Far East Hospitality Trust and CDL Hospitality Trusts. This period also saw a 14% increase in average monthly visitor arrivals, significantly influenced by a 56% rise in Chinese tourists, contributing to higher hotel occupancies and a robust recovery in the hospitality sector.

Manufacturing Sector Leads BDA Adoption Among Singaporean SMEs

According to a recent study by the Singapore University of Social Sciences, the manufacturing sector is at the forefront of adopting Big Data Analytics (BDA) among Singaporean SMEs, with 64.58% integration into their operations. This trend is in line with global movements towards Industry 4.0, utilizing data to optimize supply chains and improve production efficiency. Following the manufacturing sector, the lifestyle cluster, which includes retail and hospitality, has a 47.83% adoption rate. The Built Environment Cluster, encompassing construction and real estate, shows a 45.45% adoption. In contrast, the Modern Services Cluster, which includes ICT and financial services, has a lower adoption rate at 36.05%, and the Essential Domestic Services Cluster, covering healthcare and education, stands at 32.26%. The findings stem from an empirical survey conducted from June to August 2023, involving 390 SMEs across six major industry clusters.

Stocks to Watch

$Genting Sing (G13.SG)$: Genting Singapore announced on Saturday that Andrew MacDonald, the chief casino operator at Resorts World Sentosa (RWS), stepped down from his position on Friday. MacDonald, who previously worked at Marina Bay Sands (MBS), had been banned from MBS premises since August following allegations of poaching high-rollers. Despite the controversy, shares of Genting Singapore saw a positive movement, closing up 1.2% or S$0.01 at S$0.845 on Friday, prior to the announcement of MacDonald's resignation.

$CityDev (C09.SG)$: City Developments Ltd (CDL) has expanded its portfolio in China by acquiring a 51% stake in a mixed-use site in Shanghai for 4.6 billion yuan (S$853.7 million). The acquisition was made through its subsidiary, Chenghong Shanghai, under a joint venture with Lianfa Group, which holds the remaining stake. This strategic move will increase CDL's pro-forma net gearing by 3.3% to 72.5%. Given the strong residential sales in Shanghai, CDL is optimistic about the demand for the residential units in this new project. Before the announcement, CDL shares experienced a modest increase, rising 0.4% or S$0.02 to S$5.22 on Friday.

$Keppel Reit (K71U.SG)$: Keppel Reit has announced a leadership transition, with Chua Hsien Yang set to become the Chief Executive Officer from January 1, 2025. Chua, currently the managing director and head of mergers and acquisitions at Keppel Reit, will succeed Koh Wee Lih, who will step down on December 31, 2024. Following his tenure as CEO, Koh Wee Lih will take on a new role as managing director of business development. Prior to the announcement, Keppel Reit units experienced a slight decline, falling 0.6 percent or S$0.005, closing at S$0.895 on Friday.

$Oxley (5UX.SG)$: Oxley Holdings has announced that no charges will be filed against its CEO, Ching Chiat Kwong, following the conclusion of investigations into his alleged involvement in an Italian corruption probe. The Singapore-based property developer stated that the inquiry stemmed from accusations by Claudio Vanin, who alleged that Ching obtained a favorable deal on the purchase of two Venice properties, Palazzo Dona and Palazzo Papadopoli. In response, Ching has filed a slander and extortion report against Vanin. Oxley confirmed that the transaction for Palazzo Papadopoli was conducted transparently and legitimately. The company's stock price remained unchanged at S$0.079 on Friday, prior to the announcement.

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