3 Things You Need to Know About the Singapore Stock Market Today
Hello, everyone. Here are three things about the local stock market that you might be interested in today.
1. The Straits Times Index (SGX: ^STI) ended Thursday at 3,598.7 points, rising 1.2% or 40.9 points.
Of the 30 index stocks, the biggest winner was ComfortDelGro Corporation Ltd (SGX: C52). The land transport outfit’s shares surged 3.7% to S$2.24.
The firm announced today that its wholly-owned subsidiary in the United Kingdom, CityFleet Networks Limited, is acquiring the business and assets of Dial-a-Cab Limited, a taxi circuit operator in London, for £1.2 million (about S$2.2 million).
Yang Ban Seng, ComfortDelGro’s managing director, said:
“This acquisition will enable the Group to grow and strengthen its position as the leading taxi circuit operator in London through an expansion of the customer and driver base. It will also help us achieve cost synergies through the consolidation of back-end processes and functions.”
Moving on, the biggest loser of the index was Hutchison Port Hldg Trust (SGX: NS8U); its units fell 1.5% to US$0.335.
Acquired by CMT in 2005 at around S$78 million, Sembawang Shopping Centre sports a latest valuation of S$126 million. The divestment is expected to bring in net proceeds of about S$245.6 million and a net gain of around S$119.6 million once the transaction is finalised by June this year.
Tony Tan, chief executive of the REIT’s manager, commented:
“The divestment of Sembawang Shopping Centre is in line with our portfolio management strategy of maximising returns for our unitholders. By unlocking the value of Sembawang Shopping Centre at this stage, it will realise the optimal value for CMT’s unitholders. As the mall accounts for only about 1% of CMT’s total asset value, its sale will have minimal impact on CMT’s financial performance and distribution per unit. The net proceeds from the divestment will further enhance and strengthen CMT’s financial flexibility.”
Units of CapitaLand Mall Trust went up 0.5% to S$2.12.
3. Keppel REIT (SGX: K71U) made public its financial results for the first quarter ended 31 March 2018 yesterday.
It was not a great quarter for the REIT as property income fell by 0.3% year-on-year to S$39.7 million and distribution per unit decreased to 1.42 Singapore cents from 1.45 Singapore cents. To know more about the earnings, you can check out the coverage here.
Keppel REIT units rose 2.5% to end Thursday at S$1.23.