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Stocks to watch: Singtel, Keppel-KBS US Reit, Noble, F&N, Suntec Reit
STOCKS to look out for on Thursday morning trading include Singtel, Keppel-KBS US Reit, Noble Group, Fraser & Neave (F&N) and Suntec Reit.
Singtel: The telco announced a 197.1 per cent jump in second-quarter earnings to S$2.9 billion, boosted by gains from the divestment of 75.2 per cent of its stake in NetLink Trust in July this year. Net profit for the three months to Sept 30, 2017, came in at a record S$2.89 billion from S$972 million for the year-ago quarter after a gain from the divestment of S$2.05 billion brought exceptional items to S$1.93 billion from S$3.4 million previously. A special dividend of three Singapore cents per share will be paid out, totalling about S$500 million out of S$2.3 billion in proceeds from the divestment of NetLink Trust.
Keppel-KBS US Reit: The initial public offer of Keppel-KBS US Reit received an overwhelming response from both institutional and retail investors. The Reit (real estate investment trust) manager said after trading closed on Wednesday that the placement tranche for 228,681,800 units to investors outside the US was over-subscribed. The Reit manager said that gross proceeds of about US$553.1 million in all were raised from a total of over 628.5 million units issued, which included 246,365,400 units issued to cornerstone investors and 119,427,199 units issued to joint sponsors who own the Reit manager.
Noble Group: Beleaguered commodities trader Noble will release its earnings today after the Singapore market closes. According to Bloomberg reports, another vast loss has been flagged after the profit warning last month, with the group guiding a range of US$1.1 billion to US$1.25 billion. The company is widely expected to embark on a restructuring. Noble's liquidity stood at US$1.4 billion at the end of June following the repayment of a US$650 million term loan and the cancellation of a US$565 million revolving credit facility upon its maturity in May 2017. Noble's shares closed at S$0.28 on Wednesday, down 1.79 per cent.
Fraser & Neave (F&N): F&N's full-year net profit has surged to S$1.3 billion from S$108.1 million a year ago after a fair value adjustment and exceptional gain of S$1.2 billion, which arose largely from the realisation of fair value adjustment reserve upon change of interests in Vietnam Dairy Products Joint Stock Co (Vinamilk). F&N closed at S$2.53 on Wednesday, down two Singapore cents, or 0.8 per cent.
Suntec Reit: The Reit's manager has priced S$300 million in convertible bonds, with an upsize option of S$50 million. The bonds, which will mature on or about Nov 30, 2024, will bear interest of 1.75 per cent every year, ARA Trust Management (Suntec) Limited, which manages the Reit, said on Thursday morning. The manager described the issue as "well subscribed".