Market Snapshot

Singapore stocks opened lower on Wednesday. STI fell 0.2%; Yangzijiang Shipbuilding fell 1%; Seatrium fell 0.9%; Singtel fell 0.7%; SIA fell 0.5%; Keppel fell 0.3%.

Stocks in Focus

Mapletree Logistics Trust (MLT): It has agreed to sell a vacant logistics property in Australia for A$28 million (US$20.2 million), the manager said on Tuesday. MLT on Tuesday also priced 500 million yuan (US$74.5 million) worth of a three-year offshore renminbi bond, which bears a coupon of 2.1 per cent per annum. Units of MLT closed 0.9 per cent or S$0.01 lower at S$1.15 before the announcements.

Singapore Airlines (SIA): The carrier on Tuesday said its investments in India are funded through its internal resources, and will continue to be so, as a long-term strategic commitment. It followed a 20-minute Parliament exchange on issues relating to the national carrier’s minority stake in the loss-making Air India. SIA shares were flat at S$6.37 on Tuesday.

Centurion:: The company said on Tuesday it has entered into an agreement to acquire a 7,974 bed purpose-built worker accommodation asset in Pasir Gudang, Johor, for RM214.5 million (US$53 million). The asset will be managed under Centurion’s Westlite Accommodation brand. Shares of Centurion closed 3.1 per cent or S$0.05 lower at S$1.54 before the announcement.

SG Local News

Ministerial Salaries to Increase by up to 9% to S$1.2m, Lower Than Review Committee's Recommendation

Singapore’s political office holders will receive a salary increase of up to 9 per cent, taking the sum to about S$1.2 million annually for a minister in the lowest MR4 grade, Prime Minister Lawrence Wong announced on Tuesday (Sep 8).

Speaking in parliament, Mr Wong, who is also finance minister, said the changes will kick in from Oct 15 this year, after the government accepted the recommendations by an independent review committee that was appointed in December last year.

It is the first time since 2011 that ministerial salaries have been changed.

Singdollar Emerges as Safe Haven Currency Amid US Dollar Volatility: BOS CIO

The Singapore dollar is increasingly being used as a safe haven currency in investors’ portfolios in recent years, as volatility in the US dollar prompts clients to diversify their currency exposure, said Jean Chia, global chief investment officer at Bank of Singapore.

Many of BOS’ clients in the region have traditionally held US dollar assets to diversify away from their domestic currencies, but this narrative is changing, especially since the greenback fell more than 10 per cent last year.

“Gone are the days that we can rely on the US dollar as one of our safe haven currencies,” Chia said at Great Eastern’s Private Client Summit on Tuesday (Sep 8).

In contrast, the Singdollar is managed against a basket of currencies of the Republic’s largest trading partners, within an undisclosed band aimed at maintaining price stability. This makes it a “great destination that will also hold steady in the years to come”, Chia said.

Pine Grove’s S$1.78 Billion En Bloc Attempt Could Get Fresh Start Under Opt-in to New Rules

Pine Grove, a 660-unit condominium in its fifth attempt at a collective sale, could get a leg up from new rules which would lower the consent hurdle it faces from 80 per cent to 70 per cent. 

While the existing collective sale framework will continue to apply where signature collection has already started, developments aged 40 years and older that are in transition have an “opt-in route” to restart the process under a new framework discussed in Parliament on Tuesday (Sep 8). 

Pine Grove’s current collective sale agreement (CSA) is due to lapse on Sep 20.