SG Morning Highlights | OCBC Acquires Over 90% of Great Eastern's Shares
Good morning mooers! Here are things you need to know about today's Singapore markets:
●Singapore shares opened higher on Tuesday; STI up 0.27%
●Singapore's Core Inflation Remains at 3.1% in May Amid Slower Rise in Power and Gas Costs
●Singapore's Q2 2024 Economic Growth to be Subdued Despite Strong Electronics Exports
●Stocks to watch: OCBC, SingPost, LMIRT
●Latest share buy back transactions
-moomoo News SG
Market Snapshot
Singapore shares opened higher on Tuesday. The $FTSE Singapore Straits Time Index(.STI.SG$ rose 0.27 percent to 3323.24 as at 9:15 am.
Advancers / Decliners is 96 to 66, with 122.22 million securities worth S$125.23 million changing hands.
Breaking News
Singapore's Core Inflation Remains at 3.1% in May Amid Slower Rise in Power and Gas Costs
The annual rate of core inflation in Singapore remained at 3.1% for the third consecutive month in May, as slower increases in power, gas, and retail prices helped offset higher inflation in services, according to data from the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI). Core inflation has remained unchanged since March, with a monthly increase of 0.1%. Meanwhile, headline inflation or the consumer price index (CPI) all items inflation rose to 3.1% YoY in May from 2.7% in April, driven by a faster increase in private transport costs. Inflation in the services sector quickened due to higher holiday expenses, while food inflation remained broadly stable.
Singapore's Q2 2024 Economic Growth to be Subdued Despite Strong Electronics Exports
Singapore's economic growth in Q2 2024 is expected to be subdued despite strong electronics exports, according to a report from the Institute of Chartered Accountants in England and Wales (ICAEW). The report highlighted that soft domestic demand will weigh down economic growth for the year, with the recent growth in the services sector potentially temporary and the retail sector resuming its contractionary trend. The softening labour market and high interest rates are also expected to constrain business investments and limit domestic demand. In contrast, electronics exports are expected to spur economic growth in Malaysia, and ICAEW anticipates growth from electronics exports in Southeast Asia as a whole.
Stocks to Watch
$OCBC Bank(O39.SG$: OCBC and concert parties have acquired over 90% of the shares in Great Eastern, according to an announcement by OCBC. As the number of shares held by the public is now below 10%, trading in Great Eastern will be suspended after OCBC's offer closes on July 12. The bank's voluntary unconditional general offer of S$1.4 billion for the remaining 11.56% stake in Great Eastern was made on May 10, with the aim of delisting its insurance arm. The offer price of S$25.60 per share represents a 36.9% premium over the insurer's last traded price before the offer announcement, but is at a 30% discount to its embedded value per share as of December 31, 2023. The offer has been deemed not fair but reasonable, and OCBC has announced that its offer price is final and that it does not intend to increase it.
$SingPost(S08.SG$: Singapore Post (SingPost) and SMRT's business arm, Stellar Lifestyle, are launching a three-month postal collection pilot project to explore the benefits of using MRT trains to collect postal items, according to a memorandum of understanding between the two firms. Up to two "mail ambassadors" in SingPost uniforms will collect postal items daily from Tampines and Raffles Place MRT stations during off-peak hours and bring them to SingPost's sorting facility near Paya Lebar MRT station. The pilot project aims to study operational cost efficiencies and carbon emission savings. SingPost and Stellar Lifestyle plan to expand the trial to more train stations across all other SMRT-operated lines if the pilot proves successful.
Lippo Malls Indonesia Retail Trust: The manager of Lippo Malls Indonesia Retail Trust (LMIRT) has entered into an agreement to issue US$16.2 million worth of guaranteed senior notes due 2026. The notes carry a coupon rate of 7.50% per annum, are payable semi-annually in arrears, and are subject to customary closing conditions. The notes are a further issuance and will rank equal to the US$200 million aggregate principal amount of 7.5% guaranteed senior notes due 2026, which were issued by LMIRT on February 9, 2021, and the US$17.6 million 7.5% notes due 2026 issued on May 28. The notes will be issued at an issue price of 95.152% of their principal amount, including accrued interest from February 9 to June 11. The proceeds will be used to refinance a portion of LMIRT's US dollar-denominated 7.25% guaranteed senior notes due in 2024 and to pay for any fees and expenses from the issue of the latest notes.
Share Buy Back Transactions
Source: Business Times, SGinvestors.io, Business Review
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