SG Morning Highlights | Olam Group Reports 0.2% Profit Increase for H1 2024, Keeps Dividend Unchanged
Good morning mooers! Here are things you need to know about today's Singapore markets:
●Singapore shares opened higher on Wednesday; STI up 0.63%
●Singapore Economy Sees 3% Growth in H1 Amid Manufacturing Slowdown
●Leasehold Strata Retail Properties Dominate H1 Transactions Despite Market Dip
●Stocks to watch: Wilmar, Olam Group and First Resources
●Latest share buy back transactions
-moomoo News SG
Market Snapshot
Singapore shares opened higher on Wednesday. The $FTSE Singapore Straits Time Index (.STI.SG)$ rose 0.63 percent to 3279.14 as at 9:13 am.
Advancers / Decliners is 112 to 62, with 116.94 million securities worth S$142.47 million changing hands.
Breaking News
Singapore Economy Sees 3% Growth in H1 Amid Manufacturing Slowdown
Singapore's economy grew by 3% in the first half of 2024, with a slight deceleration in the second quarter due to a contraction in manufacturing, particularly in biomedical manufacturing. Despite the slowdown, growth was buoyed by sectors such as wholesale trade, finance, insurance, and information & communications. The Ministry of Trade and Industry (MTI) has revised the full-year GDP growth forecast to 2%-3%, with expectations of a resilient external demand.
However, geopolitical and trade tensions, along with global disinflation disruptions, present downside risks. The manufacturing sector, especially electronics, is poised for recovery in H2, while the biomedical manufacturing cluster may continue to face challenges. Growth projections for key trading partners vary, with slower growth in the US and China, gradual increases in Europe, and slight recovery in Southeast Asia.
Leasehold Strata Retail Properties Dominate H1 Transactions Despite Market Dip
Leasehold strata retail properties led the transaction volume in the first half of 2024 even as the number of deals declined by 7.9% half-on-half. Nevertheless, total sales for leasehold units rose by 10.4%, reaching $291.7 million. Freehold strata retail saw a 16.7% increase in deal count, but overall sales value dropped significantly by 49% to $115.4 million from the previous half, indicating a cooling in the market for retail space.
Stocks to Watch
$Wilmar Intl (F34.SG)$: Wilmar International reported a net profit of US$579.6 million for the first half of 2024, marking a 5.2% increase from the previous year, driven by improved performance in feed, industrial, and food product segments. Despite a 4.9% revenue dip due to falling commodity prices, higher sales volume mitigated the impact. The food products segment saw a significant 76.9% rise in pre-tax profit. Wilmar maintained its interim dividend at S$0.06 per share, payable on August 29. The company's gearing improved slightly, with reduced net loans and borrowings. Shares closed at S$3.01, down 1% before the earnings announcement.
$Olam Group (VC2.SG)$: Olam Group reported a marginal increase in H1 2024 net profit to S$48.03 million, up by 0.2% from the previous year, with earnings per share steady at S$0.0084. Despite an 8.3% rise in operational profit, higher finance costs and taxes dampened net earnings. Revenue grew by 9.1% to S$26.9 billion, boosted by its food ingredients unit ofi. The company will maintain its interim dividend at S$0.03, payable on August 29. The CFO notes a sharp increase in finance costs due to higher commodity prices and interest rates, and anticipates the second half of the year to be influenced by ongoing geopolitical and macroeconomic challenges.
$First Resources (EB5.SG)$: First Resources has reported a significant 45.4% rise in net profit to US$103.9 million for the first half of FY2024, up from US$71.5 million in the previous year. The agribusiness company attributes this increase to higher production volumes and improved processing margins, with crude palm oil volumes up by 5.8%. Revenue saw a modest increase of 1.9%. CEO Ciliandra Fangiono notes that while palm oil prices are moderated by anticipated production increases, domestic policies in Indonesia should maintain robust local demand. The firm has also declared an increased interim dividend of S$0.035 per share, up from S$0.025 last year.
Share Buy Back Transactions
Source: Business Times, SGinvestors.io, Business Review
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