Hot stock: SingPost rises 2.1% on news of postal rate hike

SHARES of Singapore Post (SingPost) closed 2.1 per cent higher on Tuesday (Sep 19), after the group announced it was introducing a significant rate increment for the first time in almost a decade.

The counter rose as much as S$0.025 or 5.2 per cent to S$0.51 in early trade on Tuesday. It eventually eased to its closing price of S$0.495, up S$0.01, after 10.5 million shares changed hands. This far exceeded the stock’s 2.7 million average. No married deals were recorded, according to ShareInvestor data.

From Oct 9, the postal service provider will increase its standard regular mail rates by S$0.20 or 65 per cent to S$0.51, from the current S$0.31. The last significant rate increment was in 2014, when postage increased to S$0.30 from S$0.22.