Singapore shares rise, tracking regional gains; STI up 0.6%
The optimism here sent the benchmark STI up 0.6 per cent or 21.68 points to 3,925.98 with gainers easily outpacing losers 333 to 170 on robust trade of 1.5 billion securities worth $1.5 billion. PHOTO: ST FILE
SINGAPORE – The stability of the cease-fire between Israel and Iran has plenty of sceptics but there were enough true believers across major regional markets to drive shares higher on June 25.
The optimism here sent the benchmark Straits Times Index (STI) up 0.6 per cent or 21.68 points to 3,925.98 with gainers easily outpacing losers 333 to 170 on robust trade of 1.5 billion securities worth $1.5 billion.
Wall Street set the direction of travel overnight, where stocks put on gains after the cease-fire seemed to hold firm.
The tech-focused Nasdaq led the way, surging 1.4 per cent, while the Dow Industrials rose 1.2 per cent and the S&P 500 advanced 1.1 per cent and is now within touching distance of the record close recorded in February.
Oil prices went the other way, falling 6 per cent, and are now below the level when fighting began earlier this month.
Regional bourses mostly followed in similar fashion. Japan's Nikkei 225 was up 0.4 per cent, the Hang Seng in Hong Kong gained 1.2 per cent and South Korea's Kospi rose 0.2 per cent.
Australian stocks swung between gains and losses throughout the day and ended virtually flat.
Mr Nigel Green, chief executive of global financial advisory company deVere Group, noted that global markets were 'dangerously relaxed' over the wider global risk of the conflict between Iran and Israel.
For instance, equity markets are not showing the 'defensive rotation' expected of investors when there are many risk indicators.
He called on investors to adjust their allocations to provide more downside protection and global diversification.
Meanwhile, the STI's top gainer was the Singapore Exchange, which climbed 3.7 per cent to $14.41, while the losers were led by Yangzijiang Shipbuilding, down 1.4 per cent to $2.19.
CapitaLand Integrated Commercial Trust was the most actively traded blue-chip counter by volume, with 90.5 million units changing hands. The units closed at $2.15, up 0.5 per cent. THE BUSINESS TIMES
Join ST's Telegram channel and get the latest breaking news delivered to you.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
4 hours ago
- Straits Times
Singapore shares rise, tracking regional gains; STI up 0.6%
The optimism here sent the benchmark STI up 0.6 per cent or 21.68 points to 3,925.98 with gainers easily outpacing losers 333 to 170 on robust trade of 1.5 billion securities worth $1.5 billion. PHOTO: ST FILE SINGAPORE – The stability of the cease-fire between Israel and Iran has plenty of sceptics but there were enough true believers across major regional markets to drive shares higher on June 25. The optimism here sent the benchmark Straits Times Index (STI) up 0.6 per cent or 21.68 points to 3,925.98 with gainers easily outpacing losers 333 to 170 on robust trade of 1.5 billion securities worth $1.5 billion. Wall Street set the direction of travel overnight, where stocks put on gains after the cease-fire seemed to hold firm. The tech-focused Nasdaq led the way, surging 1.4 per cent, while the Dow Industrials rose 1.2 per cent and the S&P 500 advanced 1.1 per cent and is now within touching distance of the record close recorded in February. Oil prices went the other way, falling 6 per cent, and are now below the level when fighting began earlier this month. Regional bourses mostly followed in similar fashion. Japan's Nikkei 225 was up 0.4 per cent, the Hang Seng in Hong Kong gained 1.2 per cent and South Korea's Kospi rose 0.2 per cent. Australian stocks swung between gains and losses throughout the day and ended virtually flat. Mr Nigel Green, chief executive of global financial advisory company deVere Group, noted that global markets were 'dangerously relaxed' over the wider global risk of the conflict between Iran and Israel. For instance, equity markets are not showing the 'defensive rotation' expected of investors when there are many risk indicators. He called on investors to adjust their allocations to provide more downside protection and global diversification. Meanwhile, the STI's top gainer was the Singapore Exchange, which climbed 3.7 per cent to $14.41, while the losers were led by Yangzijiang Shipbuilding, down 1.4 per cent to $2.19. CapitaLand Integrated Commercial Trust was the most actively traded blue-chip counter by volume, with 90.5 million units changing hands. The units closed at $2.15, up 0.5 per cent. THE BUSINESS TIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
4 hours ago
- Business Times
Japan's NTT DATA Group targets July listing of data centre Reit on Singapore exchange: sources
[SINGAPORE] Japan's NTT DATA Group could list its data centre real estate investment trust (Reit) on the Singapore stock exchange as early as July, two sources with knowledge of the matter said, in a deal that could raise up to US$1 billion. The company is looking to lodge its IPO prospectus with the Singapore regulator as early as this week or early next week, the sources said on Wednesday (Jun 25), and was in the process of engaging cornerstone investors. The sources declined to be identified as the information is confidential. Cornerstone investors are large institutional investors that subscribe to an IPO offering before it is open to the public. 'We are aiming to go public during FY2025. However, the specific timing will be determined based on market conditions,' NTT DATA Group said in an emailed response to Reuters on Wednesday. Its 2025 fiscal year runs from April 2025 to March 2026. 'Additionally, in order to be listed, we need to undergo the review and approval process by the Singapore Stock Exchange, and the approval timing is not yet certain,' the company said, adding that it had not yet disclosed the planned IPO amount. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up The listing, if it proceeds, would be the biggest in Singapore since the US$977 million IPO of Digital Core Reit in 2021, LSEG data showed. There is growing interest from companies seeking to list on the Singapore Exchange, after the city-state announced measures in February to strengthen its equities market, including a 20 per cent tax rebate for primary listings. Hong Kong-listed China Medical System said on Tuesday it had applied for a secondary listing of its shares on the Singapore Exchange. NTT's data centre Reit is expected to include four data centres in the US, one in Austria and one in Singapore, one of the sources said on Wednesday. REUTERS
Business Times
4 hours ago
- Business Times
Going around in circles: Do Singapore investors have an appetite for another telco listing?
[SINGAPORE] Singapore's public listing drought has left investors searching for any sign of life in the markets. It is understandable, then, that the potential listing of Singapore-based virtual telecommunications player on the Singapore Exchange (SGX) gave rise to some excited chatter. Rameez Ansar, chief executive officer and co-founder of Circles, told media last month that the telco was mulling an initial public offering (IPO) here, while the parent company could list on the Nasdaq in New York. Circles is backed by investors including private equity firm Warburg Pincus and the investment arm of Singapore's Economic Development Board, EDBI. Ansar said all business lines under Circles have reached breakeven, and noted that the company has a two-year target to reach 'world-class' business metrics that would support its stock market performance. He did not provide a specific timeline for when the IPOs might happen – if at all – saying that it will depend on market conditions and regulators in Singapore and the US. 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 But the bigger question might be if there is investor appetite for another telco in the public markets. Singing in the rain Temasek-owned communications technology conglomerate Singtel is the biggest player here, and holds a clear advantage over the competition. On top of the telco business, it operates next-generation connectivity, digital infrastructure and digital businesses in the region, including data centre arm Nxera and IT services unit NCS. Singtel also owns Optus – the second-largest telecommunications company in Australia – and holds significant stakes in telco associates in India (Bharti Airtel), Indonesia (Telkomsel), the Philippines (Globe), and Thailand (AIS). For the full year ended March, Singtel logged a net profit of S$4.02 billion, more than five times higher than the S$795 million in earnings recorded the year before. This was boosted mostly by a net exceptional gain of S$1.55 billion, on the back of the partial divestment of its Comcentre headquarters in Singapore. Underlying net profit rose 9 per cent to S$2.47 billion for the full year, driven by robust performances from Optus, NCS, as well as regional associates Airtel and AIS. In constant-currency terms, the underlying net profit would have been up 11 per cent year on year. DBS Group Research analyst Sachin Mittal expects the value of Singtel's core businesses in Singapore and Australia – excluding its associates – to grow by more than 300 per cent over the next 12 to 18 months. 'We project a core net profit compound annual growth rate (CAGR) of 10 per cent over FY2025 to FY2028, driven by growth in Optus, NCS and its data centre (business),' he said in a Jun 19 report. 'Optus and NCS are already contributing to core Ebit (earnings before interest and taxes) growth, while the data centre business is expected to see a significant rise in its contribution from FY2027 onwards,' he added. DBS has a 'buy' call on Singtel, with an increased target price of S$4.58 – implying a potential upside of 20.5 per cent from the stock's closing price of S$3.80 on Wednesday (Jun 25). Already, Singtel has been one of the best performers among Singapore blue-chip stocks so far this year, as investors flee to defensive sectors such as telecommunications, industrials, and utilities amid ongoing global uncertainties and volatility. Year to date, Singtel has generated a total return – with dividends reinvested – of 23.4 per cent. In comparison, the benchmark Straits Times Index has returned 6.3 per cent over the same period. StarHub, Singapore's other listed telco player, however, has faltered. Fading stars? In contrast to Singtel's outperformance, StarHub has registered a total return of minus 3.2 per cent year to date. One reason might be that StarHub's business is significantly smaller than Singtel's. For its full year ended Dec 31, 2024, StarHub posted a 7.3 per cent increase in net profit to S$160.5 million, from S$149.6 million the previous year. Mittal, however, notes that the outlook for StarHub could be brighter ahead, as costs from its transformation programme to build a digital platform with multi-cloud capabilities taper off. He said in a report on May 13: 'StarHub incurred about 90 per cent of its total transformation costs of S$270 million in FY2024, with the residual 10 per cent to be spent in the first half of FY2025.' 'We project 12 per cent earnings CAGR over FY2025 to FY2027, and a yield of around 5 per cent in FY2025,' he added. DBS has a 'buy' recommendation on the stock. Mittal in the May report lowered his target price to S$1.38, from S$1.46 previously. Meanwhile, pundits are also keeping an eye out for the impact from a potential merger between StarHub and M1, which was rumoured to take place by the end of this month. 'A potential merger between StarHub and M1 might significantly benefit Singtel's Singapore business,' Mittal said. 'This consolidation would ease the intense price competition, particularly in the mobile virtual network operator space, which has historically driven down average revenue per user across the industry.' M1 was delisted from SGX in 2019 and its financials are no longer made public. Clearly, investors tend to favour the larger listcos and blue-chips, especially amid the uncertainties. How would Circles fare? Or any other small- to mid-cap players looking to list, for that matter? Despite the chatter, there is unlikely to be a rousing reception from investors.
