SG Morning Highlights | Nio Reduces Q2 Losses Amid Surging Vehicle Sales, Sets Higher Q3 Delivery Goals
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Good morning mooers! Here are things you need to know about today's Singapore markets:
●Singapore shares opened higher on Friday; STI up 0.08%
●Singapore Increases Renewable Energy Import Target to 6 GW by 2035
●New LTV Limit May Impact Sales of High-End HDB Resale Flats
●Stocks to watch: NIO, UOB
●Latest share buy back transactions
- Moomoo News SG
Market Snapshot
Singapore shares opened higher on Friday. The $FTSE Singapore Straits Time Index (.STI.SG)$ rose 0.08 percent to 3461.50 as at 9:17 am.
Advancers / Decliners is 89 to 75, with 149.55 million securities worth S$108.38 million changing hands.
Breaking News
Singapore Increases Renewable Energy Import Target to 6 GW by 2035
Singapore is set to increase its renewable energy import target to 6 GW by 2035, up from the previous 4 GW, in a move to enhance its energy sustainability and reduce carbon emissions. Announced at the Indonesia International Sustainability Forum, this decision aligns with the granting of conditional licenses for two new projects that will supply 1.4 GW from Indonesia. These developments, part of a broader collaboration between the two nations, reflect a significant step in Singapore's commitment to decarbonizing its power sector and strengthening regional energy cooperation. The initiative, backed by an estimated US$20 billion investment, involves innovative projects utilizing solar power and new sub-sea cables for efficient energy transmission.
New LTV Limit May Impact Sales of High-End HDB Resale Flats
The Singaporean government's recent decision to reduce the Loan-to-Value (LTV) limit for HDB housing loans from 80% to 75% could potentially slow down the sales of high-end HDB resale flats. Announced by the Ministry of National Development on August 20, this measure requires buyers to contribute more upfront cash, likely causing a cautious reevaluation of purchase decisions, particularly among prospective buyers of pricier flats. While real estate agency OrangeTee suggests that the impact on million-dollar transactions might be limited, as these buyers often do not rely on HDB loans, PropNex anticipates a temporary decline in such high-value sales. The full impact of these changes is expected to unfold in the coming months, though some experts like Huttons predict strong ongoing demand for larger flats in central regions, despite the cooling measures.
Stocks to Watch
$NIO Inc. USD OV (NIO.SG)$: Chinese electric vehicle (EV) manufacturer Nio has considerably narrowed its losses in the second quarter of FY2024, with a reported loss of 5.05 billion yuan, a 16.7% improvement from the previous year, bolstered by a significant increase in vehicle sales. The company's vehicle sales doubled to 15.7 billion yuan and vehicle sales margin rose to 12.2%. Loss per share decreased to 2.50 yuan from 3.70 yuan a year earlier. Nio anticipates record-breaking delivery volumes for Q3, expecting to deliver between 61,000 and 63,000 vehicles. This robust performance comes despite ongoing challenges in global markets, demonstrating Nio's growing competitive edge and market acceptance.
$UOB (U11.SG)$: UOB is pioneering the use of artificial intelligence (AI) in portfolio optimization within its corporate banking division, already implemented in Singapore and Malaysia, and plans to expand to other Southeast Asian markets. The AI model has improved UOB's corporate banking revenue by 3 to 5% over last year's baseline in Singapore, without compromising on the return on risk-weighted assets (RoRWA). This model processes extensive historical data to balance risk and revenue growth, guiding the bank in capital allocation decisions. This initiative is part of UOB's broader strategy to integrate AI across its operations, enhancing efficiency and supporting sustainable business growth.
Share Buy Back Transactions
![SG Morning Highlights | Nio Reduces Q2 Losses Amid Surging Vehicle Sales, Sets Higher Q3 Delivery Goals](https://sgsnsimg.moomoo.com/sns_client_feed/101000102/20240906/ad4a9d0c184e6c16d6485912968e9d11.jpg/big?area=101&is_public=true)
Source: Business Times, SGinvestors.io, Business Review
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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