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Stocks to watch: SIA, DBS, Keppel, Boustead, Chip Eng Seng
THE following companies saw new developments that may affect trading of their securities on Thursday:
Singapore Telecommunications (Singtel): The telco has reorganised its structure to capture new digital growth, with the changes set to take effect from Jan 1, 2021. Key to this is the creation of a 5G enterprise portfolio. Singtel shares were trading flat at S$2.32 as at 9.07am on Thursday, after the announcement.
Singapore Airlines (SIA): The flag carrier on Wednesday flew the first of its six SilkAir Boeing 737 MAX planes back to Changi Airport. The milestone, announced on Wednesday, indicates that these planes could return to commercial use in the near future after being grounded since March last year. Separately, the Civil Aviation Authority of Singapore on Wednesday said it is introducing tightened measures that will see air crew of Singapore carriers undergo more Covid-19 tests and minimise their contact with locals while on layover. SIA shares closed S$0.09 or 2.1 per cent higher at S$4.33.
DBS, Keppel Corporation: KrisEnergy has extended the maturity of its revolving credit facility (RCF) from DBS to June 30, 2021. In conjunction with this, Keppel and the bank have extended their bilateral contract, under which Keppel holds the key economic risk in the RCF, for the same period. Keppel said this is meant to support efforts by KrisEnergy's management to effect a consensual debt restructuring plan. At Wednesday's close, before the announcements, shares of Keppel rose S$0.04 or 0.7 per cent to S$5.45, while DBS advanced S$0.03 or 0.1 per cent to S$25.23.
Boustead Singapore, Chip Eng Seng Corp: Engineering services group Boustead Singapore said on Wednesday night that it has sold its wholly-owned water solutions unit to Chip Eng Seng for about S$7.3 million. Shares of Chip Eng Seng, which has businesses in civil infrastructure and construction, closed flat at S$0.43, while Boustead Singapore finished 0.6 per cent or 0.5 Singapore cent higher at 80.5 cents.
City Developments Limited (CDL): The property giant has obtained a five-year S$470 million green revolving credit facility to refinance its flagship Republic Plaza commercial property and on-lending to other eligible green projects. Separately, another CDL director has quit citing concerns over the company's investment in Sincere Property Group. CDL shares ended S$0.03 or 0.4 per cent higher to close at S$8.06 on Wednesday after these announcements.
UOL Group: The property developer and investment company announced several leadership changes after Wednesday's close. Wellington Foo Thiam Fong will be retiring as UOL's chief financial officer and group company secretary with effect from Dec 31. He is succeeded by deputy Kwa Bing Seng, who will be promoted to Mr Foo's role. UOL's senior general manager Yeong Sien Seu will be promoted to chief legal officer and company secretary. The counter closed S$0.09 or 1.2 per cent higher at S$7.79.
Koufu Group: The food and beverage group on Wednesday said it is selling its stake in Indonesian joint venture, Super Tea Indonesia, to reduce costs and streamline operations though it will continue its licensing agreement with the company. Koufu is anticipating operating profits for the second half of 2020 to be "significantly lower" than the year-ago period. It will also record a higher impairment loss on property, plant and equipment as well as right-of-use assets for FY2020. The counter closed flat at S$0.68, before the announcement.
OUE Lippo Healthcare: The Catalist-listed company announced on Wednesday that it will jointly manage an obstetrics and gynaecology hospital in Changshu, China with Hong Kong's China Merchants Group. Its 50:50 joint venture will house 140 beds, with a gross floor area of about 25,000 square metres, and is expected to be commissioned in 2023. OUE Lippo shares closed 0.3 Singapore cent or 10 per cent higher at 3.3 cents.
Trading halt: Sunpower Group requested a trading halt at the close of Wednesday, pending the release of an announcement. Shares of the environmental solutions provider ended the day at S$0.80 on Wednesday, up S$0.01 or 1.3 per cent.