Stocks to watch: CDL, SingPost, SIA, MeGroup, Fortress Minerals, Raffles Education

THE following companies saw new developments that may affect trading of their securities on Monday (Oct 11).

City Developments Limited (CDL): C09 The property and hotels group has fully settled an obligation for a corporate guarantee given by it to a financial institution in relation to a loan extended by the financial institution to HCP Chongqing Property Development (HK). Together with interest accrued, the amount worked out to US$213.1 million, or about US$100,000 more than the provision of US$213 million made by the group in H2 2020 for the corporate guarantee. Shares in CDL closed at S$7.09 last Friday (Oct 8), up S$0.01 or 0.1 per cent.

Singapore Post: S08 The postal service and courier company said in a bourse filing on Friday (Oct 8) that it will be increasing its stake in Australia logistics service company, Freight Management Holdings, from 28 per cent to 51 per cent. As part of a revised agreement made last year, the group exercised a call option early with the consideration for option shares estimated at A$84.5 million (S$83.7 million). SingPost shares closed unchanged at S$0.635, before the announcement.

Singapore Airlines (SIA): C6L As part of the Vaccinated Travel Lane (VTL) scheme, from Oct 19, Singapore is launching eight VTLs with countries in Europe and North America. This announcement was made during a multi-ministry task force press conference on Saturday (Oct 9). A SIA spokesperson told The Business Times that the flag carrier has seen "very high demand" for the VTL flights. SIA shares closed S$0.05 or 1 per cent higher at S$5.13 last Friday (Oct 8).

MeGroup: SJY : SJY 0% Honda Malaysia has appointed Catalist-listed MeGroup as an authorised used car dealer starting January 2022, the latter announced on Monday (Oct 11). MeGroup will also set up a new facility in Kulim Hi-tech Park in Kedah which will house its existing Mazda assembly line and a new manufacturing line. Shares of MeGroup closed flat at S$0.15 on Friday.

Fortress Minerals: OAJ The iron ore concentrate producer reported on Friday (Oct 8) a 42 per cent decline year on year in net profit to US$3.3 million for its second quarter ended Aug 31. Revenue for the three months was also lower at US$10 million, compared to US$13 million for the same period a year earlier. Fortress Minerals shares closed unchanged at S$0.395, before the announcement was made.

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Raffles Education: NR7 The education group's auditors highlighted that the group's current liabilities exceeded its current assets by S$196.4 million for the financial year ended June 2021. However, the group believes this is not likely to pose material uncertainty on the ability of the group and of the company as a going concern. Raffles Education shares closed unchanged at S$0.096 on Friday (Oct 8), before the announcement was made.