Singapore stocks to watch Thursday: SGX, Frasers Commercial Trust, ComfortDelGro

ComfortDelGro taxiComfortDelGro taxi

Singapore Exchange

Singapore Exchange and India’s National Stock Exchange have resumed discussions on a potential collaboration in Gujarat International Finance Tec-City International Financial Services Centre, which is India’s fledgling finance hub.

SGX and NSE will jointly engage and consult relevant stakeholders on the proposed collaboration, the Singapore bourse operator said after the market close on Wednesday.

Relations between the two exchanges had sourced over a plan by SGX to launch new India stock derivative products and the two had been engaged in arbitration proceedings.

SGX had planned to roll out the new India derivatives in June to make up for the imminent loss of its flagship Nifty 50 futures products, which had been affected by India’s decision to scrap a licensing agreement.

“Pending the outcome of the discussions, the learned arbitrator has granted a deferment of the arbitration proceedings between SGX and IISL (NSE’s index company). The directions under the arbitration order remain effective.” SGX said.

Frasers Commercial Trust

Frasers Commercial Trust reported on Wednesday that its fiscal third quarter net property income fell 26.9 percent on-year to S$20.37 million amid lower occupancy rates for its Singapore properties, Central Park and 357 Collins Street and a weaker Australian dollar.

The trust also faced higher repair and maintenance expenses for Caroline Chisholm Centre, the trust manager said in a filing to SGX after the market close on Wednesday.

https://shentonwire.net/2018/07/25/frasers-commercial-trust-fiscal-3q18-net-property-income-falls/

ComfortDelGro

Transport operator ComfortDelGro Corporation will acquire the private bus chartering assets of Ric-Tat Travel & Coach Services and its associated companies for S$6.45 million in a move to strengthen its unscheduled bus services business.

Ric-Tat was established in 2000 and operates private charter and tour bus services. Its customers include American and Japanese multinationals as well as local enterprises in industries such as semiconductor manufacturing, construction, oil and gas, and leisure and hospitality.

ComfortDelGro will take over Ric-Tat’s existing charter contracts, 72 buses and associated drivers as part of the transaction, it said after the close of trading on Wednesday,

The acquisition comes just three months after a similar one involving AZ Bus Pte Ltd for S$10.25 million.

Parkway Life Real Estate Investment Trust

Parkway Life Real Estate Investment Trust (PLife) reported on Thursday a 3.7 percent fall in distribution per unit to 3.19 Singapore cents for the second quarter ended June due to an absence of divestment gains.

DPU from recurring operations grew by 3.2 percent during the quarter from a year ago, while gross revenue for the period edged 1.3 percent higher to S$28.06 million.

Looking ahead, PLife said the minimum guaranteed rent from its Singapore hospitals will increase by 1.38 percent for the 12 months starting 23 August. In view of the volatile currency markets, the trust will extend its Japanese yen hedges till first quarter 2023.

Ascendas India Trust

Ascendas India Trust, which owns industrial properties in India, posted a 23 percent rise in distribution per unit to 1.60 Singapore cents for the quarter ended June even as total property income slipped 3 percent to S$44.9 million.

CEO Sanjeev Dasgupta said in a statement on Wednesday the better performance was due to additional income from the acquisition of two warehouses, completion of a building, interest income from investments and positive rental reversions. In contrast, the year-ago performance was hurt by income hedging losses and one-off settlement expenses.

ST Engineering

ST Engineering said on Wednesday its electronics arm secured S$764 million worth of contracts in the second quarter of 2018. These were driven by Smart City solutions in mobility, satellite communications, Internet of Things (IoT), public safety and security and cybersecurity, as well as defense solutions.