SG Morning Highlights | OCBC and Concert Parties Garner 93.52% of Shares in Great Eastern Holdings
Good morning mooers! Here are things you need to know about today's Singapore markets:
●Singapore shares opened higher on Monday; STI up 0.21%
●Johor Bahru-Singapore RTS Link Could Cause Significant Retail Value Leakage, Warns Expert
●Prime Office Market Records Lower Vacancy Rates in Q2 2024
●Stocks to watch: OCBC, CapitaLand Investment, Singtel
●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 0.21 percent to 3505.00 as at 9:07 am.
Advancers / Decliners is 108 to 56, with 105.10 million securities worth S$87.64 million changing hands.
Breaking News
Johor Bahru-Singapore RTS Link Could Cause Significant Retail Value Leakage, Warns Expert
The Johor Bahru-Singapore RTS Link could cause a retail value leakage of 5.4% and a 3% to 4% impact on retail sales, according to experts. DBS has noted that the reduced travel times with the RTS could lead to Singaporeans spending more in Johor Bahru, causing a potential total retail sales outflow of $1.5 billion to $2.1 billion, equivalent to 3-4% of total retail sales in Singapore in 2023. In the F&B space, sales could decrease by $450 million to $620 million, about 4%-5% of 2023 sales. Facing potential losses, DBS suggested that local establishments distinguish themselves from JB counterparts with premium offerings. Even with a relatively subdued impact from the RTS link, DBS advised Singaporean drugstores to enhance their offerings to stay competitive.
Prime Office Market Records Lower Vacancy Rates in Q2 2024
The prime office market in Singapore's Core CBD Premium and Grade A offices recorded lower vacancy rates in Q2 2024, according to a report by Colliers. Vacancy tightened to 2.3%, down from 2.6% in Q1 2024. This decline in vacancy is expected to increase demand for prime office spaces, which reported a net absorption of 41,000 sq ft, a reversal from the -0.3k sq ft in Q1. Colliers also reported that the market will see an additional 1.26 million sq ft of prime office space in the next quarter.
Stocks to Watch
$OCBC Bank(O39.SG$: OCBC and its concert parties have garnered 93.52% of shares in Great Eastern Holdings (GEH) as of the close of its offer on July 12, lower than the 98.87% shareholding needed to trigger a compulsory acquisition and short of the 97.17% level at which SGX RegCo may have directed Great Eastern to make an offer to delist. Existing GEH shareholders who have yet to accept OCBC's offer can still do so, as the bank and its concert parties hold more than 90% of the insurer's shares. These shareholders will receive a notice by July 24, after which they can exercise the right to encash their shares for a period of three months. OCBC's shares closed 0.5% or S$0.08 higher at S$15.28 on Friday.
$CapitaLandInvest(9CI.SG$: CapitaLand Investment (CLI) has raised one billion yuan (S$186 billion) from the second tranche of its sustainability-linked bonds in China, after raising the same amount from an earlier tranche in March this year. The latest issuance was made at a fixed coupon rate of 2.8% per annum, which CLI claimed was a "record low" among bonds of its kind. Shares of CLI closed 4.9% or S$0.13 higher at S$2.81 on Friday.
$Singtel(Z74.SG$: Singtel's Thai subsidiary, Advanced Info Service Public Company (AIS), is "not obligated" to pay the additional revenue share claimed by National Telecom Public Company (NT), according to a statement released by AIS on July 14. The dispute was concluded after the Thai Supreme Administrative Court dismissed NT's appeal on July 12. NT filed a complaint with the Arbitral Tribunal in 2018, claiming additional revenue share from roaming services from AIS, which amounted to some 16.25 billion baht with a penalty interest rate of 1.25% per month. NT's claims were dismissed on February 11, 2020, and its petition to revoke the arbitration award was also dismissed on December 20, 2023. NT subsequently filed an appeal against the Central Administrative Court's judgment with the Supreme Administrative Court.
Share Buy Back Transactions
Source: Business Times, SGinvestors.io, Business Review
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Banker8 : concert parties?