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Stocks to watch: FHT, Frasers Property, Prime US Reit, Suntec Reit, Riverstone
THE following companies saw new developments that may affect trading of their securities on Monday:
Frasers Hospitality Trust (FHT): The stapled group, comprising Frasers Hospitality Real Estate Investment Trust and Frasers Hospitality Business Trust, said its financial performance for the second quarter of FY20 is expected to be adversely affected by the Covid-19 pandemic. This comes as its portfolio, comprising 15 assets across Asia, Australia and Europe, "witnessed weaker operating performance". FHT stapled securities closed up 1.5 Singapore cents or 4 per cent to 39.5 cents at Friday's close, before the announcement.
Frasers Property: The company on Friday night said it is setting aside S$45 million to provide further rental rebates for tenants across all its retail malls. Cash security deposits will also be released to offset one month’s worth of rental payments. The counter rose S$0.05 or 4.5 per cent to close at S$1.16 on Friday.
Prime US Reit: Barbara Cambon, chief executive of the real estate investment trust's (Reit) manager, said office vacancy rates remained stable despite the Covid-19 outbreak due to the tight labour market. The Reit is focused on identifying US markets with signs of robust job expansion, she added. Units of Prime US Reit rose 3 US cents or 5 per cent to 63.5 cents at Friday's close.
Suntec Real Estate Investment Trust (Reit): Suntec City will roll out a second tranche of rental assistance to more than 97 per cent of its mall tenants. All savings from the enhanced property tax rebates announced by the government have been included in its S$16 million rental assistance package, said Suntec Reit which owns 100 per cent of Suntec City Mall. The Reit's units rose S$0.06 or 4.7 per cent to close at S$1.33 on Friday before the announcement.
Riverstone Holdings: The mainboard-listed glovemaker told The Business Times it has seen a surge in orders as the coronavirus outbreak creates increased demand for healthcare gloves. It has also started making 50,000 masks daily for its key customers. Riverstone shares rose S$0.06 or 7.1 per cent to S$0.91 at Friday's close.
Straco Corporation: The mainboard-listed tourism player on Sunday said that its attraction, Shanghai Ocean Aquarium, will remain closed from March 30 in response to the evolving situation of Covid-19 in the city. Straco had initially planned to reopen the aquarium from March 18. The counter finished at 49 Singapore cents on Friday, up 0.5 cent or 1 per cent.
Biolidics, Clearbridge Health: Catalist-listed cancer diagnostics company Biolidics has entered an agreement to acquire Biomedics Laboratory from a subsidiary of Clearbridge Health for a cash consideration of up to S$3.7 million. This acquisition will give Biolidics immediate access to Biomedics' resources and capabilities. At Friday's close, Biolidics shares closed up 0.9 Singapore cents or 4.6 per cent to reach 20.5 cents before the announcement, while Clearbridge Health shares rose 0.4 cent or 4 per cent to 10.5 cents.
Singtel: Hooq Digital, a joint-venture firm in which Singtel has a 76.5 per cent effective interest, has commenced a creditors' voluntary winding-up. After the announcement was made, DBS Group Research on Friday night raised its earnings forecast for Singtel by 4.5 per cent for FY2021 and increased its price target on the telco to S$2.85. Singtel shares gained S$0.05 or 2 per cent to close at S$2.57 on Friday.