logo
Singapore shares climb on Friday; STI gains 0.2%

Singapore shares climb on Friday; STI gains 0.2%

Business Times16-05-2025

[SINGAPORE] Local stocks rose on Friday (May 16), a day after the Monetary Authority of Singapore and Singapore Exchange Regulation announced they were seeking feedback on proposed changes to the Singapore bourse.
The stock exchange's blue-chip barometer, the Straits Times Index (STI), rose 0.2 per cent or 5.93 points to 3,897.87.
Across the broader market, gainers beat losers 307 to 203, as one billion securities worth S$1.1 billion changed hands.
The biggest winner on the STI was CapitaLand Ascendas Real Estate Investment Trust , which was up 1.5 per cent or S$0.04 at S$2.63.
On the other end of the index was conglomerate Jardine Matheson , which fell 1.5 per cent or US$0.70 to US$46.74.
Another STI constituent, Singtel , gained 1.3 per cent or S$0.05 to S$3.80, after the group announced it has sold a 1.2 per cent stake in India's Bharti Airtel for S$2 billion. Over 26.9 million Singtel shares worth S$102.1 million were traded.
The local bank counters finished mixed. DBS , which traded ex-dividend, fell 1.1 per cent or S$0.50 to S$44.60. UOB edged up slightly by S$0.01 to S$35.50. Meanwhile, OCBC gained 0.5 per cent or S$0.08 to S$16.32.
Outside Singapore, regional indices ended mixed. Hong Kong's Hang Seng Index fell 0.5 per cent, while South Korea's Kospi rose 0.2 per cent. The Bursa Malaysia Kuala Lumpur Composite Index slid 0.1 per cent and Japan's Nikkei 225 closed flat.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Gold falls on strong US jobs data and improved trade outlook
Gold falls on strong US jobs data and improved trade outlook

Business Times

time28 minutes ago

  • Business Times

Gold falls on strong US jobs data and improved trade outlook

[BENGALURU] Gold prices fell on Monday (Jun 9) as a stronger-than-expected US jobs report cooled expectations of interest rate cuts from the Federal Reserve, while optimism over easing trade tensions between US-China weighed on the bullion's safe-haven demand. Spot gold fell 0.2 per cent to US$3,303.19 an ounce, as at 0056 GMT. US gold futures fell 0.7 per cent to US$3,323.40. Three of US President Donald Trump's top aides will meet with their Chinese counterparts in London on Monday for talks aimed at resolving the trade dispute between the two largest economies that has kept global markets on edge. The US economy added 139,000 jobs in May, surpassing analysts' expectations, while the unemployment rate was unchanged at 4.2 per cent, the Labor Department said. Wage growth also exceeded forecasts, dampening the likelihood of imminent rate cuts. Investors have scaled back bets on rate cuts, now anticipating one reduction in October. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Trump, meanwhile, said that a decision on the next Federal Reserve chair would be announced soon, adding that a 'good Fed chair' would lower interest rates. The US dollar index edged slightly up, making gold more expensive for overseas buyers. On the geopolitical front, Trump's order banning citizens of 12 countries from entering the US goes into effect on Monday. Russia stated on Sunday that its forces had advanced to the edge of Ukraine's Dnipropetrovsk region amid tensions over peace talks and the repatriation of soldiers' remains. Gold, often seen as a hedge against inflation and geopolitical uncertainty, could face pressure from higher interest rates, which reduce its appeal as a non-yielding asset. Elsewhere, spot silver remains unchanged at US$35.94 per ounce, platinum fell 0.5 per cent to US$1,163.10, while palladium was down 0.5 per cent to US$1,041.75. REUTERS

Keppel DC Reit to join STI from June 23; units rise 0.9%
Keppel DC Reit to join STI from June 23; units rise 0.9%

Straits Times

timean hour ago

  • Straits Times

Keppel DC Reit to join STI from June 23; units rise 0.9%

Loh Hwee Long, CEO of Keppel DC Reit Management, says the Reit saw overall valuation gains in 2024, especially from its Singapore colocation assets. PHOTO: THE BUSINESS TIMES SINGAPORE - Following the Straits Times Index's (STI) June quarterly review, Keppel DC Reit will be entering the index, replacing Jardine Cycle & Carriage, effective from June 23. This increases the total number of S-Reits in the index to eight. The eight S-Reits in the STI will be: CapitaLand Ascendas Reit, CapitaLand Integrated Commercial Trust, Frasers Centrepoint Trust, Frasers Logistics & Commercial Trust, Mapletree Industrial Trust, Mapletree Logistics Trust and Mapletree Pan Asia Commercial Trust. Keppel DC Reit units rose 0.9 per cent, or two cents, to $2.26 as at 9.08am on June 9, after the announcement. With a market cap of $4.9 billion, it re-enters the STI after exiting in June 2023, and is expected to increase S-Reits' combined weight in the index to over 10 per cent. The Reit, Asia's first pure-play data centre Reit, listed in 2014 with eight data centres and $1 billion in assets under management (AUM). Today, it owns 24 data centres across 10 countries, with an AUM of $4.9 billion. Of this, 81.6 per cent is in Asia-Pacific (66.3 per cent in Singapore) and 18.4 per cent in Europe. Keppel DC Reit's Q1 2025 results showed a 59.4 per cent year-on-year increase in distributable income, with gross revenue and net property income (NPI) growing by 22.6 per cent and 24.1 per cent, respectively. Its distribution per unit rose by 14.2 per cent to 2.503 for the quarter. This was driven by acquisitions of Keppel DC Singapore 7 & 8, Tokyo Data Centre 1, and higher contributions from contract renewals and escalations in 2024. Portfolio rental reversion was 7 per cent, with no major renewals in the first quarter of 2025, and portfolio occupancy remained at 96.5 per cent as at March 31. Loh Hwee Long, chief executive officer of Keppel DC Reit Management, noted at Reit's annual general meeting that it saw overall valuation gains in 2024, especially from its Singapore colocation assets. Most European assets also recorded local currency gains despite some softness in smaller data centres, reinforcing the strength of its diversified, value-focused portfolio. The Reit has been actively acquiring assets. In 2024, it entered Japan as a new market with the acquisition of Tokyo Data Centre 1, and also completed the acquisition of two AI-ready hyperscale data centres in Singapore from its sponsor, Keppel, which marked its largest deal exceeding $1 billion since listing. According to its annual report, the Reit's sponsor, Keppel, plans to expand its data centre portfolio to a total of 1.2 gigawatt in the near term, which could provide a pipeline of assets for Keppel DC Reit to potentially acquire. For its financial year 2024, the Reit recorded 15.5 per cent year-on-year decrease in total greenhouse gas emissions and has achieved the GRESB Green Star for a third consecutive year, with six of its assets in Singapore and Dublin maintaining green certifications. In trading this year, Keppel DC Reit has ranked among the top 20 stocks by trading turnover and among the top five most actively traded S-Reits. The STI reserve list, which consists of the five highest ranking non-constituents of the STI, will be (in alphabetical order): CapitaLand Ascott Trust, ComfortDelGro, Keppel Reit, NetLink NBN Trust and Suntec Reit. THE BUSINESS TIMES Join ST's Telegram channel and get the latest breaking news delivered to you.

BYD unleashes an EV industry reckoning that alarms Beijing
BYD unleashes an EV industry reckoning that alarms Beijing

Straits Times

time2 hours ago

  • Straits Times

BYD unleashes an EV industry reckoning that alarms Beijing

The Chinese government is trying to prevent price cuts by market leader BYD from turning into a vicious spiral. PHOTO: REUTERS BEIJING - The price war engulfing China's electric vehicle (EV) industry has sent share prices tumbling and prompted an unusual level of intervention from Beijing. The shakeout may just be getting started. For all the Chinese government's efforts to prevent price cuts by market leader BYD from turning into a vicious spiral, analysts say a combination of weaker demand and extreme overcapacity will slice into profits at the strongest brands and force feebler competitors to fold. Even after the number of EV makers starting shrinking for the first time in 2024, the industry is still using less than half its production capacity. Chinese authorities are trying to minimise the fallout, chiding the sector for 'rat race competition' and summoning heads of major brands to Beijing last week. Yet previous attempts to intervene have had little success. For the short term at least, investors are betting few automakers will escape unscathed: BYD, arguably the biggest winner from industry consolidation, has lost US$21.5 billion (S$27.7 billion) in market value since its shares peaked in late May. 'What you're seeing in China is disturbing, because there's a lack of demand and extreme price cutting,' said John Murphy, a senior automotive analyst at Bank of America Corp. Eventually there will be 'massive consolidation' to soak up the excess capacity, Mr Murphy said. For automakers, relentless discounting erodes profit margins, undermines brand value and forces even well-capitalised companies into unsustainable financial positions. Low-priced and low-quality products can seriously damage the international reputation of 'Made-in-China' cars, the People's Daily, an outlet controlled by the Communist Party, said. And that knock would come just as models from BYD to Geely, Zeekr and Xpeng start to collect accolades on the world stage. For consumers, price drops may seem beneficial but they mask deeper risks. Unpredictable pricing discourages long-term trust – already people are complaining on China's social media, wondering why they should buy a car now when it may be cheaper next week – while there's a chance automakers, as they cut costs to stay afloat, may reduce investment in quality, safety and after-sales service. Auto CEOs were told last week they must 'self-regulate' and shouldn't sell cars below cost or offer unreasonable price cuts, according to people familiar with the matter. The issue of zero-mileage cars also came up – where vehicles with no distance on their odometers are sold by dealers into the second-hand market, seen widely as a way for automakers to artificially inflate sales and clear inventory. Chinese automakers have been discounting a lot more aggressively than their foreign counterparts. Mr Murphy said US automakers should just get out. 'Tesla probably needs to be there to compete with those companies and understand what's going on, but there's a lot of risk there for them.' Others leave no room for doubt that BYD, China's No. 1 selling car brand, is the culprit. 'It's obvious to everyone that the biggest player is doing this,' Jochen Siebert, managing director at auto consultancy JSC Automotive, said. 'They want a monopoly where everybody else gives up.' BYD's aggressive tactics are raising concerns over the potential dumping of cars, dealership management issues and 'squeezing out suppliers,' he said. The pricing turmoil is also unfolding against a backdrop of significant overcapacity. The average production utilization rate in China's automotive industry was mere 49.5 per cent in 2024, data compiled by Shanghai-based Gasgoo Automotive Research Institute show. An April report by AlixPartners meanwhile highlights the intense competition that's starting to emerge among new energy vehicle makers, or companies that produce pure battery cars and plug-in hybrids. In 2024, the market saw its first ever consolidation among NEV-dedicated brands, with 16 exiting and 13 launching. Jiyue Auto shows how quickly things can change. A little over a year after launching its first car, the automaker jointly backed by big names Zhejiang Geely Holding Group and technology giant Baidu, began to scale down production and seek fresh funds. It's a dilemma for all carmakers, but especially smaller ones. 'If you don't follow suit once a leading company makes a price move, you might lose the chance to stay at the table,' AlixPartners consultant Zhang Yichao said. He added that China's low capacity utilization rate, which is 'fundamentally fueling' the competition, is now even under more pressure from export uncertainties. While the push to find an outlet for excess production is thrusting more Chinese brands to export, international markets can only offer some relief. 'The US market is completely closed and Japan and Korea may close very soon if they see an invasion of Chinese carmakers,' Mr Siebert said. 'Russia, which was the biggest export market last year, is now becoming very difficult. I also don't see South-east Asia as an opportunity anymore.' The pressure of cost cutting has also led analysts to express concern over supply chain finance risks. A price cut demand by BYD to one of its suppliers late in 2024 attracted scrutiny around how the car giant may be using supply chain financing to mask its ballooning debt. A report by accounting consultancy GMT Research put BYD's true net debt at closer to 323 billion yuan (S$57.9 billion), compared with the 27.7 billion yuan officially on its books as of the end of June 2024. The pain is also bleeding into China's dealdership network. Dealership groups in two provinces have gone out of business since April, both of them ones that were selling BYD cars. Beijing's meeting with automakers last week wasn't the first attempt at a ceasefire. Two years ago, in mid 2023, 16 major automakers, including Tesla Inc., BYD and Geely signed a pact, witnessed by the China Association of Automobile Manufacturers, to avoid 'abnormal pricing.' Within days though, CAAM deleted one of the four commitments, saying that a reference to pricing in the pledge was inappropriate and in breach of a principle enshrined in the nation's antitrust laws. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store