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Stocks to watch: Singapore Airlines, UOB, ST Engineering, HPHT, Banyan Tree
THE following companies saw new developments that may affect trading of their securities on Monday:
Singapore Airlines (SIA): The flag carrier on Monday announced it has raised S$10 billion in fresh liquidity through its rights issue as well as a mix of secured and unsecured credit facilities. This week, its shareholders will also be able to begin trading their rights shares and 10-year mandatory convertible bonds (MCBs). Trading starts on Monday at 9am for the newly issued shares, and on Tuesday at 9am for the MCBs.
Separately, SIA chief executive Goh Choon Phong said the flag carrier does not plan to cut jobs at the moment, and will focus on recovering from the pandemic. SIA shares fell S$0.05 or 1.1 per cent to close at S$4.33 on Friday.
United Overseas Bank (UOB): The lender is targeting to maintain its 50 per cent dividend payout ratio this year amid the challenging business climate, subject to the Common Equity Tier 1 ratio staying above 13.5 per cent, UOB chairman Wong Kan Seng said at its virtual annual general meeting on Friday.
Meanwhile, UOB is reopening nine more branches in Singapore on Monday, including those in Shaw Centre, Novena Square and Fu Lu Shou Complex. This brings the total number of its branches that will be open to 47, while 14 remain closed. Shares of UOB finished at S$22.00 on Friday, up S$0.37 or 1.7 per cent.
ST Engineering: It disclosed on Sunday that the recent ransomware attack on its US-based subsidiary is an "isolated" attack that has since been contained. VT San Antonio Aerospace said on Friday that a criminal group gained unauthorised access to its network and deployed a ransomware attack. ST Engineering shares gained S$0.04 or 1.2 per cent to end trading at S$3.53 on Friday.
Hutchison Port Holdings Trust (HPHT): The trust's manager on Sunday said the declining trend of its distributions to unitholders was due to the repayment of debt, amid the "extremely challenging" global and macroeconomic events. Units of HPHT closed 0.3 US cent or 2.7 per cent higher at 11.5 cents on Friday.
Banyan Tree: The hospitality group is undertaking a series of right-sizing and cost-saving exercises that has affected 10 to 15 per cent of its global workforce. Across its brands globally, Banyan Tree has 11,000 staff and 47 hotels. The counter advanced one Singapore cent or 4.1 per cent to finish Friday at 25.5 cents before the announcement.
Ascott Residence Trust (ART): The trust will be included in the FTSE EPRA Nareit Global Real Estate Index Series (Global Developed Index) from June 22, it announced on Monday morning. Stapled securities of ART closed flat at S$1.05 on Friday.
SIA Engineering: On Friday after trading hours, the company told the Singapore Exchange it is not aware of any information not previously announced that might explain the unusual trading activity in its shares. The counter had surged 20 Singapore cents or 9.9 per cent to close at S$2.22, with 2.87 million shares traded. Most of the rally took place before the lunch break.
Singapore Telecommunications (Singtel): The telco's Indian associate Bharti Airtel is mounting a comeback. Bharti Airtel is the best performer on India's stock benchmark this year, jumping 26 per cent and reaching a record on May 19, amid optimism the carrier will continue to attract bigger-spending users. Singtel shares rose S$0.05 or 1.9 per cent to finish at S$2.63 on Friday.
Geo Energy Resources: The Indonesian coal miner's wholly-owned unit failed to get noteholders' consent to amend the indenture for its 8 per cent senior notes. The amendments would have given the group more financial flexibility at the expense of its noteholders. Geo Energy shares fell 0.4 Singapore cent or 3.1 per cent to 12.6 cents on Friday before the announcement.