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Stocks to watch: DBS, Singtel, Singapore Airlines, City Dev, FLT, FCOT

THE following companies saw new developments that may affect trading of their securities on Tuesday:

DBS Group: The bank on Monday announced that it will defer dividend payments to shareholders until after a new date for its annual general meeting (AGM) is fixed. The payment of the proposed final dividend of S$0.33 per ordinary share for the financial year ended Dec 31, 2019, is subject to shareholders' approval at the AGM, which was originally scheduled for March 31.

Separately, DBS told The Business Times (BT) of plans to rev up growth in the used-car market by 20 per cent, adding that it does not expect an increase in auto loan defaults this year. DBS shares closed down S$0.84 or 4.4 per cent on Monday to finish at S$18.30.

Singtel: The telco's board of directors have volunteered to take a 10 per cent fee cut for the upcoming financial year, as a “show of solidarity with the company”. From April 1, Singtel will also extend care packages of free services, such as free entertainment and data-free Whatsapp messaging. Singtel shares on Monday ended S$0.15 or 5.8 per cent lower at S$2.42, before the announcement.

Singapore Airlines (SIA): The flag carrier will continue cutting spend, even after announcing a S$15 billion cash call last week. In a note seen by BT, the group's chief executive Goh Choon Phong told staff that while the S$15 billion in funding has provided “a critical lifeline”, SIA isn’t out of the woods yet. Staff will also be allowed to take on temporary positions outside the group. Shares in SIA closed at S$5.80 on Monday, down S$0.28 or 4.6 per cent.

City Developments Limited (CDL): The property developer's board has appointed Clarence Tan as the group chief executive officer of Millennium & Copthorne Hotels, it announced late on Monday after trading hours. Mr Tan will be the first to take the helm of the hotel arm of CDL. The counter fell S$0.44 or 6 per cent to S$7 at Monday's close.

Frasers Logistics & Industrial Trust (FLT), Frasers Commercial Trust (FCOT): The court hearing for the proposed merger of FLT and FCOT is expected to take place on Friday. FCOT is expected to delist on April 29, and the expected book closure date is April 14. On Monday, FLT units closed down S$0.005 or 0.58 per cent to S$0.87 while units of FCOT finished S$0.01 or 0.85 per cent lower at S$1.17 on Monday.

Low Keng Huat (Singapore): The mainboard-listed building company recorded a jump in net profit of 264 per cent to S$12.7 million for its fourth quarter ended Jan 31, 2020, on the back of higher revenue. Higher profit in the hotel segment was mainly due to the write-back of provision for impairment no longer required as business commenced at Citadines Balestier. The counter closed down 1.5 Singapore cents or 3.8 per cent to 38 cents on Monday before the announcement.

Zhongmin Baihui Retail Group: The mainboard-listed operator of more than a dozen malls in China posted a net loss of 5.8 million yuan (S$1.16 million) for its fourth quarter ended Dec 31, 2019, widening from a net loss of 6.6 million yuan the year before. The counter closed flat at 62.5 Singapore cents on Monday, before the results were released.

Second Chance Properties: The mainboard-listed company on Monday posted a 23.1 per cent drop in net profit in its second quarter ended Feb 29, despite a slight increase in revenue. The difference was due mainly to a fair-value loss on financial assets of S$0.7 million in the second quarter this year, compared to a fair-value gain of S$0.2 million last year. Second Chance Properties shares closed unchanged at S$0.17 on Monday before the results were released.

Biolidics: The Catalist-listed cancer diagnostics company has launched a rapid test kit for Covid-19, which is expected to be available by end April and has received provisional authorisation from Singapore's Health Sciences Authority for use in Singapore. Biolidics declined to reveal the cost of the test kits, but noted that it would be “more affordable than what is in the market”. The counter closed up 1.5 Singapore cents or 7.3 per cent to 22 cents at Monday's close before the announcement.

Don Agro: The Catalist-listed Russian agri and dairy firm on Monday night posted a 16.9 per cent drop in net profit to S$5.2 million for the year ended Dec 31, 2019, from S$6.4 million a year ago. The decline was mainly due to higher cost of sales and lower harvest prices compared with FY2018. Don Agro's shares closed up S$0.06 or 27.3 per cent to S$0.28 on Monday.

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