SG Morning Highlights | OUE Anticipates Loss in 1HFY2024 Due to Investee Company's Performance
Good morning mooers! Here are things you need to know about today's Singapore markets:
●Singapore shares opened lower on Monday; STI down 0.18%
●Singapore's AUM Hits $5.41t in 2023, Maintains 10% Growth
●MAS Director Confident in Singapore Wealth Management's Growth Amid Regulatory Challenges
●Stocks to watch: Bukit Sembawang, OUE
●Latest share buy back transactions
-moomoo News SG
Market Snapshot
Singapore shares opened lower on Monday. The $FTSE Singapore Straits Time Index(.STI.SG$ dropped 0.18 percent to 3441.24 as at 9:17 am.
Advancers / Decliners is 99 to 93, with 121.60 million securities worth S$114.86 million changing hands.
Breaking News
Singapore's AUM Hits $5.41t in 2023, Maintains 10% Growth
Singapore's assets under management (AUM) reached $5.41 trillion in 2023, growing by 10% year-on-year, consistent with a five-year CAGR of 10%. The private equity and venture capital segments expanded at a 24.6% CAGR, contributing over $650 billion to the AUM, with a focus on APAC business growth. Private credit is poised for growth, with more global managers establishing a presence in Singapore. The corporate debt market grew 10.5% to $566 billion despite high interest rates, with new issuances of $230 billion. Singapore also leads ASEAN in sustainable debt, with issuances increasing by 7% to $38 billion in 2023, totaling over $130 billion since 2018.
MAS Director Confident in Singapore Wealth Management's Growth Amid Regulatory Challenges
MAS Managing Director Chia Der Jiun confirmed the growth of Singapore's wealth management industry despite a recent money laundering incident. He emphasized the country’s strong regulatory framework and the active role of financial institutions in reporting suspicious activities. MAS is reviewing the case for further actions. The sector remains a global hub, with efforts to streamline tax incentives and initiatives to promote philanthropy. Chia also highlighted future priorities for the financial sector, including digital service safety and sustainable practices.
Stocks to Watch
$Bukit Sembawang(B61.SG$: Ahead of its annual general meeting on July 26, Bukit Sembawang Estates Ltd. (BSEL) addressed concerns raised by the Securities Investor Association (Singapore) regarding its capital structure and recent senior management changes. Sias probed BSEL's sales strategies, capitalization status, management performance, share price dip, and a 58.5% net profit drop in FY2023. BSEL defended its prudent approach, citing a conservative capital structure with low gearing, and a strong cash flow that positions it well for future property acquisitions and market uncertainties. The company reassured stakeholders of its healthy land bank, steady sales pipeline, and strategy focusing on long-term value and capital efficiency.
$OUE(LJ3.SG$: OUE Limited, a real estate owner, developer, and operator, has warned of an expected loss for the first half of the fiscal year 2024, contrasting with a profit of $40.2 million in the same period last year. The forecasted loss is mainly due to the estimated losses from Gemdale Properties and Investment Corporation Limited (GPI), in which OUE holds a 25.2% stake. GPI's challenges in the Chinese property market slowdown and current economic conditions have significantly affected its performance. OUE predicts a non-cash loss of $92 million to $106 million from its share of GPI's results, a stark shift from a $19 million profit share in 1HFY2023. Despite this, OUE assures that the loss will not materially impact its operational cashflows or funding requirements. The company plans to announce its 1HFY2024 results by August 14. OUE's shares experienced a slight drop, closing at $1.18 on July 19.
Share Buy Back Transactions
Source: Business Times, SGinvestors.io, Business Review
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