Singapore stock preview: Singtel, CapitaLand Mall and Commercial Trust
SGX-ST mainboard stocks to note for the week of 07 September 2020.
Singtel (SGX: Z74)
Singapore Telecommunications (Singtel) is undoubtedly one of the hottest Singapore Exchange (SGX) blue-chip listings of the moment, thanks to its falling share price.
Last Friday 04 September 2020, the stock sunk further to a 12-year low of S$2.25 a share – a level not seen since the 2008 Global Financial Crisis.
This latest price rout was caused by a massive sell off of major US tech stocks a day earlier (03 September), which then negatively impacted equity sentiments globally.
The weekend did little to stop short selling momentum, with shares still toiling at trough prices on Monday 07 September 2020.
Ever since Singtel posted its first quarter 2020/2021 earnings last month, share price has been on a steady decline. The launch of its 5G network last week also did not help to cushion share price.
For now, the stock remains one to watch in the week ahead, with some pundits expecting price to plunge even more without any major announcements in sight.
IG’s client analysis shows that ‘sells’ currently form 100% of all Singtel trades.
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CapitaLand Mall Trust (SGX: C38U), CapitaLand Commercial Trust (SGX: C61U)
Last Friday, CapitaLand Mall Trust Management Limited (CMTML) and CapitaLand Commercial Trust Management Limited (CCTML), the respective managers of CapitaLand Integrated Commercial Trust (CMT) and CCT-SG (CCT), issued notices of their respective unitholder meetings, to be held on Tuesday 29 September 2020.
The meetings aim to seek unitholders’ approval for the proposed merger of CMT and CCT (first announced in January this year) to create a diversified commercial real estate investment trust (REIT) to be named “CapitaLand Integrated Commercial Trust”.
CMT will hold its Extraordinary General Meeting (EGM) at 10:30 SGT, while CCT will convene its EGM and Trust Scheme Meeting at 14:00 SGT and 14:30 SGT respectively.
CMTML has also decided to waive 100% of the acquisition fee on a one-off basis (amounting to approximately S$111.2 million), in recognition of the unprecedented circumstances brought about by the Covid-19 pandemic.
The proposed merger is expected to be effected by way of a trust scheme of arrangement, with CMT acquiring all the issued and paid-up units in CCT held by the unitholders of CCT in exchange for a combination of issued and paid-up units in CMT (CMT Units) and cash.
CMT and CCT both opened higher on Monday 07 September. They are trading at S$1.95 and S$1.67 respectively as at 11:10 SGT on 07 September 2020.
Oceanus Group (SGX: 579)
Seafood producer Oceanus Group announced on Wednesday 02 September 2020 that it has made an investment in Singapore aquafarming specialist Universal Aquaculture for deep tech indoor farming.
Universal Aquaculture has an indoor farming facility using Hybrid Biological Recirculation System (HBRS) POD technology, which Oceanus plans to utilise for the breeding of vannamei prawns.
Oceanus’ Chief Executive Officer, Mr. Peter Koh, said in an official statement: ‘This investment is a strategic fit with our business to bring breakthrough technology in aquaculture farming.
‘More specifically, this indoor farming facility uses the HBRS POD technology, which is the world’s first hybrid biological recirculation system.
‘It is the next generation in aquaculture water treatment which reduces the need for large water treatment tanks and equipment, thereby saving space, energy and water consumption, whilst creating perfect water conditions for breeding within a shorter period of harvesting time.’
The Oceanus stock is trading at S$0.007 as at 11:25 SGT on 07 September 2020.
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