STI edges 0.4% higher on Friday, led by DBS

THE Straits Times Index (STI) ended Friday (May 31) at 3,336.59, up 13.21 points or 0.4 per cent. Advancers were outnumbered by decliners, however – 265 to 323. The value of securities traded was an unusually high S$4.4 billion.

Singapore’s largest stock, DBS , was key to the STI’s strength. It rose 1 per cent on Friday to end at S$35.99 – closing in on its 52-week intra-day high of S$36 touched on May 2. The stock was among the day’s more heavily traded counters.

Also on the list of most actively traded stocks was Mapletree Pan Asia Commercial Trust (MPACT), which is planning to sell its Mapletree Anson property in Anson Road for S$775 million. That is 1.3 per cent above the book value of the property, and 14 per cent above the original purchase price.

MPACT’s manager said the sale proceeds will be used to repay debt. The trust’s aggregate leverage ratio would fall from 40.5 per cent as at Mar 31, 2024, to 37.6 per cent, on a pro forma basis. The counter closed flat for the day, at S$1.22.

In a client note, DBS said MPACT has “not only successfully executed the divestment to further strengthen its capital structure, it has delivered better than market expectations by divesting above its book value and resulting in a (distribution per unit) accretion of 1.5 per cent”.

DBS added the divestment announcement was also well-timed to coincide with an index rebalancing that would have placed selling pressure on the counter. “We believe this could mark the start of re-rating for MPACT,” it said.

SEE ALSO

MPACT to divest office building Mapletree Anson for S$775 million

Asian markets saw mixed trading. Top performers included Japan, up 1.1 per cent, as well as Australia and the Philippines, both up 1 per cent. Indonesia was close to the bottom, down 0.9 per cent. Hong Kong declined 0.8 per cent.

Indian shares closed slightly higher ahead of the national elections outcome. The NSE Nifty 50 was up 0.2 per cent and the S&P BSE Sensex rose 0.1 per cent.