3 Things You Need to Know About the Singapore Stock Market Today
Here are three things about the local stock market and investing in general that you might be interested in today.
1. The Straits Times Index (SGX: ^STI) finished the day at 3,435.78 points, down 32.99 points or 0.95%. The US Federal Reserve raised interest rates by a quarter of a percentage point to a range of 1.25% to 1.5% early this morning, marking the third rate hike this year.
Out of the 30 index components, 17 were in the red; nine were in the green while the rest were flat.
The stock that fell the most was Jardine Strategic Holdings Limited (SGX: J37), slumping 2.3% to US$39.72.
On the other hand, Hutchison Port Hldg Trust (SGX: NS8U) was the biggest winner of the lot. The trust’s units rose 1.2% to US$0.41.
2. Industrial real estate investment trust (REIT), ESR-REIT (SGX: J91U), has made its largest acquisition to date.
It announced before market open that it has acquired an 80% interest in 7000 AMK Pte Ltd, which owns a leasehold interest in 7000 Ang Mo Kio Avenue 5, for S$240 million. The vendor, Ho Lee Properties Pte Ltd, holds the remaining 20%. ESR-REIT has the option to purchase the remaining interest.
As of end-October 2017, the building was valued at S$303 million (on a 100% basis). A high-specification property located within the Serangoon North Industrial Estate, it is 91.9% occupied (as of 1 December 2017) with tenants such as Heptagon Micro Optics Pte Ltd, SP Services Ltd and StarHub Ltd (SGX: CC3). It has a gross floor area of around 1.07 million square feet (sq ft) and a net lettable area of roughly 834,783 sq ft.
The acquisition was funded by internal cash resources, bank borrowings and part of the proceeds from the REIT’s subordinated perpetual securities.
To rebalance ESR-REIT’s capital structure, its manager is considering an equity fundraising to issue up to 263 million new units in the REIT. This would be done through a private placement and/or a non-renounceable preferential offering to existing unitholders.
Separately, it said that it had completed the acquisition of 8 Tuas South Lane from Hyflux Membrane Manufacturing (S) Pte Ltd, for S$95 million.
The two acquisitions will boost ESR-REIT’s portfolio value by 31.4% to S$1.75 billion. They are part of the REIT’s continuing efforts to rejuvenate its portfolio, by recycling capital from lower yielding non-core assets to value-adding acquisitions with long-term growth potential.
The REIT ended the day flat at S$0.56.
3. Clearbridge Health Limited is going to be the latest company to go public. Its shares are expected to start trading on 18 December 2018 at 9 am. To know more about the initial public offering, you can head here.