SINGAPORE – Singapore stocks ended the week slightly higher despite a cautious mood around Chinese President Xi Jinping’s Sept 23-25 US state visit with President Donald Trump, where disputes over tariffs and artificial intelligence remained unresolved.
The Straits Times Index rose 27.28 points, or 0.48 per cent, from its Sept 18 close to finish at 5,710.65 on Sept 25. It had climbed to 5,723.76 on Sept 22, but gave up some of those gains as a sell-off in US government bonds pushed yields higher.
Saxo UK investor strategist Neil Wilson noted “aggressive unloading” of US bonds on Sept 24, as the 10-year Treasury yield touched 5.23 per cent, a 19-year high, and the 30-year yield rose above 5.5 per cent, its highest level since 2004.
Yields had eased by Sept 25, but remained elevated: US Treasury data put the 10-year yield at 5.17 per cent and the 30-year yield at 5.49 per cent. Bond yields rise when their prices fall.
With inflation still above the Federal Reserve’s 2 per cent target, investors were also weighing the prospect of another quarter-point interest rate increase by the US central bank in October.
In Singapore, the three local banks outperformed the broader market over the week. Compared with their Sept 18 closes, DBS gained 1.43 per cent to end at $78, OCBC rose 1.88 per cent to $32.01 and UOB added 1.87 per cent to $42.57.
SGX companies to be more transparent
Listed companies will be held to higher standards of transparency and shareholder communication from Jan 1, 2027.
Among the new obligations rolled out by the Singapore Exchange Regulation (SGX RegCo) on Sept 23, every listed firm must have a dedicated investor relations policy published on its company website to facilitate regular, effective and fair communication with shareholders.
At a minimum, it must set out the channels through which the issuer communicates with investors, including the mechanisms by which investors may contact the issuer.
Companies are also encouraged to publish their annual reports, minutes of annual general meetings, investor presentation decks and a calendar of upcoming events on their websites.
Annual reports must include a link to the company’s investor relations policy, a description of its dividend policy, and a description of key shareholder engagement activities within the year. While companies are not required to issue dividends, they must explain their reasons for not doing so if they choose not to.
Listed companies must also clearly explain the factors used to determine the amount paid to the company’s executive directors and executives, including the chief executive, in their annual reports.
The new rules are to “target specific communication gaps and are aimed at elevating disclosure quality”, said the regulator.
Starhub, Keppel discussing potential M1 deal
StarHub and Keppel, in bourse filings on Sept 23, confirmed that they were discussing a potential deal involving telco M1.
Keppel, which owns a majority stake in M1, said it continues to explore consolidation opportunities involving M1, as it believes consolidation “is needed for Singapore’s telco sector”.
Should a deal materialise between Starhub and M1, it would reduce the number of mobile network operators in Singapore from four to three, subject to regulatory approval.
Shares for StarHub climbed during the week, reaching a peak of $1.15 on Sept 24 before closing on Sept 25 at $1.12.
Keppel shares also rose, peaking at $11.45 on Sept 24. The shares closed the week on Sept 25 at $11.30.
M1’s telco business returned to the spotlight after Simba’s proposed $1.4 billion takeover fell through in May. The Infocomm Media Development Authority (IMDA) had suspended its assessment of the deal while investigating Simba’s unauthorised use of radio frequency bands that it was not assigned to provide mobile services.
Simba said earlier on Sept 23 that it had used frequency spectrum beyond the limits permitted by the regulator.
“There was some use of spectrum that was permitted by the IMDA, and we then used it outside the limitations that were in that purpose,” said Tony Moffatt, company secretary of Simba’s Australian-listed parent Tuas, in an earnings call.
Grab’s bosses buy shares
Grab shares rose 8.9 per cent on Sept 22 after CEO Anthony Tan bought about US$30 million (S$38.3 million) worth of shares and president Alex Hungate purchased about US$867,000 worth of shares the previous day, according to US regulatory filings.
Grab shares had fallen to a three-year low of US$2.74 on Sept 18, after the company on Sept 15 announced a US$1.49 billion deal to acquire a 60 per cent stake in buy-now-pay-later provider Atome Financial.
It will acquire the remaining 40 per cent around two years after the first stage of the deal is completed, which is expected to be in the third quarter of 2027, subject to certain conditions.
The deal, which Grab said would give the ride-hailing giant a ready-made consumer-lending operation to complement its existing mix of financial services, could ultimately value Atome at up to US$4.5 billion, a sum some analysts have said may be too much to pay for synergies that have yet to be demonstrated.
At a company town hall, Tan was reported to have said: “I have put my money where my mouth is… I believe in our strategy and our direction.”
Grab closed Sept 25 at US$3.13, up 10.6 per cent through the week.
Other market movers
Seatrium on Sept 22 launched a new $200 million share buyback programme after fully using its previous $100 million allocation on Sept 1.
Seatrium CEO Chris Ong said the larger buyback reflects a clear pathway for future growth underpinned by strengthened fundamentals and margins, and a robust global pipeline of offshore and marine work. He added that it would continue to allocate capital carefully while returning cash to shareholders.
The new buyback programme will be done progressively, funded by existing cash resources and repurchases of up to a maximum of 2 per cent of its total issued shares. The buyback will be subject to shareholder approval at each annual general meeting.
Shares for Seatrium closed on Sept 25 at $2.10, down nearly 1 per cent through the week.
Former Cathay cinema operator mm2 Asia said on Sept 22 that its proposed rescue investor, MMRA, had received regulatory approval to potentially take control of the distressed entertainment company without having to offer to buy out its other shareholders.
mm2 Asia said that the Securities Industry Council waived the requirement for MMRA to make a mandatory general offer after subscribing for up to 16.34 billion new shares in the company.
The proposed placement, which was earlier announced in July, is expected to raise around $15 million. About $11.5 million is planned for debt repayment, with $3.5 million for general working capital and restructuring expenses.
MMRA is a subsidiary of Hildrics Asia Growth Fund, a private equity fund that provides growth capital to mid-tier South-east Asian companies. It is managed by Hildrics Capital.
Catalist-listed Incredible Holdings has filed a Singapore High Court application to place the company under judicial management, it said on Sept 23.
This comes after Incredible Holdings on Sept 19 said that one of its independent directors, Eunice Veon Koh Pei Lee, was assisting in investigations by the Commercial Affairs Department and the Monetary Authority of Singapore.
The investigations involve alleged offences under the Securities and Futures Act (Chapter 289) and Securities and Futures Act 2001.
Shares of Incredible Holdings have been suspended from trading since September 2022.
What to look out for next week
America’s largest payroll processor ADP will release data on the change in the number of people privately employed in the US for September on Sept 30. A rise could mean that better consumer spending – and potentially higher inflation – can be expected.
China’s official September manufacturing purchasing managers’ index (PMI) is expected to be released on Sept 30 and provide a snapshot of where the regional trade demand is heading.
China’s manufacturing PMI in August was 49.8, which was a slight increase from July’s 49.2 and slowly inching towards the 50 expansion/contraction line.
Singapore’s own September manufacturing PMI numbers are due Oct 2. It was 51.5 in August, up from July’s 51.4.
