SG Morning Call | Singapore Stocks Open Higher; Yangzijiang Shipbuilding Drops 4%

Market Snapshot

Singapore stocks opened higher on Monday. STI rose 0.1%; DBS rose 0.8%; OCBC rose 0.3%; UOB rose 0.2%; Yangzijiang Shipbuilding fell 4%.

Stocks to Watch

$CapitaLand Integrated Commercial Trust(C38U.SI)$ (CICT): The manager of the trust on Friday announced the sale of its stake in the serviced residence component of CapitaSpring. CICT owns a 45 per cent interest in Glory SR Trust, which holds the serviced residence component of the integrated development. The manager did not disclose the purchasers, but described them as an “unrelated third party”. Located in the Central Business District, CapitaSpring comprises 299 serviced residence units, as well as office and retail spaces. The agreed property value of the serviced residence component between the buyers and sellers is S$280 million, making CICT’s stake worth S$126 million. However, the trust’s share of the sale consideration is estimated to be S$37.8 million, after factoring in the repayment of existing unitholder loans owed by Glory SR Trust, as well as completion adjustments. Units of CICT closed flat at S$2.15 on Friday.

$Japan Foods(5OI.SI)$: The group on Monday announced that it expects to report a substantial net loss for FY2025, largely due to weak sales amid market saturation and challenging macroeconomic conditions; higher selling and distribution expenses as a result of higher manpower costs, utilities expenses, and rental and depreciation charges; and impairment loss relating to non-performing outlets and write-off of fixed assets relating to the closure of certain outlets. This is based on a preliminary review of its unaudited management accounts. The counter closed flat at S$0.27 on Friday.

SG Local News

Landslide Victory for Singapore's Ruling PAP in PM Wong's First Electoral Test

The ruling People's Action Party (PAP) has won a landslide victory in Prime Minister Lawrence Wong's first electoral test as leader of the government.

Looking at the nationwide vote share, the PAP won 65.57 per cent, up from its previous result of 61.24 per cent in GE2020.  

In the next parliament, 87 electoral seats will be filled by the PAP and 10 by the WP.

Delistings Accelerate on SGX

Four Singapore Exchange (SGX) companies announced privatisation offers last week, taking the number of companies that have received such offers in 2025 to at least 11.

While most of the companies received offers from major shareholders citing poor trading liquidity as the main reason for privatisation, one firm – gaming hardware distributor Ban Leong Technologies – received an offer last week from a third-party acquirer with no prior relationship to the company.

Singapore gaming company Epicsoft Asia, a wholly owned subsidiary of Nasdaq-listed gaming giant GCL Global, on April 30 made an offer to take Ban Leong private for 60.29 cents a share in cash.