Here are three things about the local stock market that you might be interested in today.
1. The Straits Times Index (SGX: ^STI) ended Tuesday at 3,415.1 points, adding 30.1 points or 0.9%.
Oversea-Chinese Banking Corp Limited (SGX: O39) emerged as the company which gained the most out of the 30 index components. The bank is set to report its 2017 financial results tomorrow before market opens. OCBC’s shares rose 2.5% to S$12.57 for the day.
On the other hand, CapitaLand Mall Trust (SGX: C38U) came in as the biggest loser after its units fell 1% to S$1.97.
2. CapitaLand Mall Trust’s sponsor, CapitaLand Limited (SGX: C31), has acquired Pearl Bank Apartments in Singapore’s Outram area for S$728 million through a private treaty collective sale. The price excludes the additional lease top-up premium of around S$201.4 million. The apartment has a land area of 82,376 square feet, with an existing plot ratio of 7.45.
The property giant intends to redevelop the site into a high-rise residential development consisting of around 800 units with a “host of social, shared facilities which will foster community spirit and celebrate the area’s unique heritage”.
President and group chief executive of the firm, Lim Ming Yan, said:
“This site is a rare gem with its prime location at the confluence of Singapore’s business and cultural districts as well as its excellent transport connectivity. The acquisition is in line with CapitaLand’s disciplined investment strategy to build our quality residential pipeline on a sustainable basis. Having built a portfolio of world-class architectural masterpieces which are well-connected to transport hubs, CapitaLand is in an unparalleled position to develop this plum site into a gleaming icon for Singapore.”
Separately, the company made public its 2017 full-year earnings.
For the twelve months ended 31 December 2017, revenue slipped 12.2% year-on-year to S$4.61 billion mainly due to lower completion and handover of units from development projects in China. This was slightly offset by rental contribution from newly acquired and opened properties, and consolidation of revenue from CapitaLand Mall Trust, CapitaRetail China Trust (SGX: AU8U) and RCS Trust.
Despite the fall in top-line, net profit soared 30.3% to S$1.56 billion on the back of higher portfolio and fair value gains from divestments of China’s Innov Tower, Singapore’s One George Street and Wilkie Edge, and serviced residence assets in Germany, China and Japan.
The company’s board of directors has proposed a final dividend of 12 Singapore cents per share for the year, a 20% increase as compared to 2016’s 10 Singapore cents per share.
Shares of CapitaLand closed at S$3.52 today, up 1.4%.
3. Yesterday, SBS Transit Ltd (SGX: S61) announced its financial results for the full year ended 31 December 2017.
Revenue for 2017 grew 8.5% year-on-year to S$1.19 billion while net profit jumped 50.3% to S$47.1 million. A final dividend of 3.95 cents per share was declared, up from 2.70 cents in 2016. To learn more about the earnings, you can check out the coverage here.
SBS Transit ended the day at S$2.62 apiece, rising 1.6%.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended units of CapitaLand Mall Trust. Motley Fool Singapore contributor Sudhan P units in CapitaLand Mall Trust.