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Stocks to watch: DBS, SIA, ST Engineering, Metro, Sapphire Corp
THE following companies saw new developments that may affect trading of their shares on Wednesday:
DBS, Singapore Airlines (SIA): DBS Bank and SIA signed a memorandum of understanding (MOU) on Tuesday to enable a seamless banking and travel customer experience for travellers by enhancing digital capabilities across various platforms. Under the MOU, the two companies will introduce flight booking and merchandising capabilities on DBS's platforms, a DBS-SIA Rewards Programme on the airline's digital wallet KrisPay, and the expansion of payment options for SIA customers using PayNow, via application programming interface (API) technology. Both partners said that the MOU is in line with SIA's move to enhance digital capabilities company-wide, and DBS's vision to make payments simple and hassle-free for customers through building integrated digital ecosystems. DBS shares closed at S$25.10 on Tuesday, down 0.1 per cent, or two Singapore cents, while SIA shares closed at S$9.56, down 0.3 per cent, or three Singapore cents.
ST Engineering: ST Engineering on Tuesday announced that it has received its first contract for its autonomous material handling solutions for an undisclosed sum, in a filing with the Singapore Exchange. Its land-systems arm will supply 80 automated guided vehicles (AGVs) to Singapore's container port operator PSA Corporation, and integrate the AGVs into the operations of PSA's next-generation port in Tuas, said the global technology, defence and engineering group. The counter closed at S$3.76 apiece on Tuesday, up 0.3 per cent, or one Singapore cent.
Metro Holdings: Metro announced on Tuesday that it has launched and priced S$165 million in aggregate principal amount of 4.3 per cent notes due 2024. The Series 002 Notes will be issued as part of the S$1 billion multi-currency debt issuance programme established by the company on Oct 4 last year, with DBS Bank and OCBC Bank as the joint lead managers and bookrunners in relation to the Series 002 Notes. The notes will be in denominations of S$250,000, with interest of 4.3 per cent per annum payable semi-annually in arrear. They will mature five years from the date of issue, which is expected to be on April 2, 2019. Net proceeds will be used for general corporate purposes, including financing investments, acquisitions and capital expenditure, refinancing of existing borrowings and general working capital requirements of the company or its subsidiaries, joint ventures and associates. The counter closed at S$1 apiece on Tuesday, up 0.5 per cent, or 0.5 Singapore cent.
Sapphire Corporation: Sapphire Corp on Tuesday maintained that its methodologies used to determine the value of the impairment of its trade receivables for its full-year financial results are "reasonable" as they were reviewed by external auditors. The integrated provider of railway infrastructure and mining specialist services was responding to queries from the Singapore Exchange (SGX) on its full-year financial results after trading hours. The company said that the higher impairment losses on doubtful receivables and contract assets were due to the receipt of termination letters for the group's two projects in Sri Lanka after the year ended Dec 31, 2018 and the adoption of SFRS(I) 9, where the group recorded a forward-looking expected credit loss on all trade and other receivables and contract assets. In addition, it said that the reversal of revenue due to the modification of a build-and-transfer project referred to a contract that was completed in previous years. The counter closed at 12.4 Singapore cents apiece on Tuesday, up 0.8 per cent, or 0.1 Singapore cent before this announcement.
Trading halts: Disa and Camsing Healthcare both requested trading halts on Wednesday morning, pending the release of announcements. Shares in Disa closed at 0.2 Singapore cent apiece on Tuesday, down 0.1 Singapore cent; while shares in Camsing Healthcare last traded at S$1.07 apiece on Jan 18.