SG Morning Highlights | Sembcorp Power Signs 10-Year Power Purchase Agreements with GSK Subsidiaries
Good morning mooers! Here are things you need to know about today's Singapore markets:
●Singapore shares opened lower on Monday; STI down 0.22%
●Singapore Reduces Industrial Land Supply as Manufacturing Activity Slows
●Local MSMEs Well-Positioned to Benefit from Growth in B2C E-Commerce Exports
●Stocks to watch: Wilmar, Sembcorp, Keppel Infrastructure Trust
●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 0.22 percent to 3325.49 as at 9:05 am.
Advancers / Decliners is 52 to 77, with 171.68 million securities worth S$96.29 million changing hands.
Breaking News
Singapore Reduces Industrial Land Supply as Manufacturing Activity Slows
Singapore's weak manufacturing activity has led to a reduction in the volume of state land tenders for the latter half of 2024, as demand for industrial sites across the city-state has dampened. JTC has cut its land sale programme by nearly a third, with five sites under the Confirmed List of the Industrial Government Land Sales (IGLS) programme for the second half of 2024, totaling a site area of 5.77 ha. This is 30% lower than the 1H 2024 programme. There are also five sites under the Reserve List of 2H 2024 programme with a combined area of 7.23 ha, which could be triggered for sale when there is enough demand. JTC launched the tender for the 4.41ha Kallang Way site as the fifth and last offering under the confirmed list of its 1H 2024 IGLS programme. The reduction in land supply is expected to shift demand to the resale market and stabilize the industrial property market.
Local MSMEs Well-Positioned to Benefit from Growth in B2C E-Commerce Exports
Local micro, small, and medium enterprises (MSMEs) are in a good position to benefit from the projected growth in B2C e-commerce exports, which is expected to reach $3.9 billion by 2027. KeaBabies from Singapore is an example of a home-grown brand that has found success in the export e-commerce market, starting with selling baby goods on Amazon.com in 2017 and expanding to Europe within a year. Today, their products are sold in North America, Europe, Singapore, and Australia. Europe, particularly the United Kingdom, is a popular destination for 36% of MSMEs seeking opportunities beyond Singapore, while 44% prefer the United States. Amazon has rolled out different programs, including Amazon Seller Ambassador and Amazon Seller Education, to help Singapore sellers scale globally. The platform has an "Amazon Seller Education" team in Singapore, which provides a comprehensive library of resources covering the sellers' journey, from registration to launching and expanding their businesses globally.
Stocks to Watch
$Sembcorp Ind (U96.SG)$: Sembcorp Power Corp., a subsidiary of Sembcorp Industries, has secured long-term power purchase agreements (PPAs) to supply up to 10 megawatts of electricity to all three of GSK's manufacturing sites in Singapore. The PPAs have tenures of up to 10 years and will commence on January 1, 2025. Under the agreement, Sembcorp will also supply up to 87,600 megawatt-hours of renewable energy certificates annually to GSK from the power generator's solar projects, enabling GSK's manufacturing operations in Singapore to achieve its 100% purchased renewable electricity target by 2025. Sembcorp does not expect the PPAs to have a material impact on its earnings per share and net tangible assets per share for the financial year ending December 31, 2024. Sembcorp has 14.4 gigawatts of global capacity and is a major renewable energy player in Asia.
$Wilmar Intl (F34.SG)$: Wilmar International, through its subsidiaries Wilmar Pakistan Holdings and Unity Wilmar Agro, has increased its stake in Pakistan-listed Unity Foods to 42.17%. Wilmar Pakistan Holdings is a wholly-owned subsidiary of Wilmar International while Unity Wilmar Agro is 52% owned by Wilmar Pakistan Holdings. Unity Foods manufactures and processes edible oils, industrial fats, flour, and various feed ingredients for Pakistan's poultry and livestock sectors. Wilmar Pakistan Holdings first announced its intention to acquire up to 277.1 million shares of Unity Foods in a public offer on March 19 and has since acquired 156.5 million shares, while Unity Wilmar Agro acquired 2.0 million shares. Wilmar Pakistan Holdings' direct interest in Unity Foods is raised to 34.84%, while Unity Wilmar Agro's stake in Unity Foods increases to 14.08%.
$Keppel Reit (K71U.SG)$: Keppel Infrastructure Trust has obtained a S$50 million loan, according to its trustee-manager Keppel Infrastructure Fund Management. Unlike the sustainability-linked loan of S$612.5 million announced on Tuesday, the purpose of this multi-currency revolving credit facility was not disclosed. The loan conditions stipulate that it would become immediately repayable if Keppel Infrastructure Fund Management stops being the trustee-manager of Keppel Infrastructure Trust, or ceases to be wholly owned by Keppel Capital Holdings and/or Keppel Limited and is not replaced by another wholly owned subsidiary of either company. Such prepayment would lead to a cross-default under the other borrowings of the trust and its subsidiaries and may affect an aggregate level of facilities of about S$1.6 billion (excluding interest and fees). Keppel Infrastructure Trust units were up 1.1% or S$0.005 at S$0.47 on Friday before the announcement.
Share Buy Back Transactions
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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