Singapore stock watch: SIA, Manulife Reit, Prudential, UOB, OCBC, Olam, Cromwell E-Reit

The Singapore Exchange Centre in Shenton Way.
The Singapore Exchange Centre in Shenton Way.PHOTO: ST FILE

SINGAPORE (THE BUSINESS TIMES) - The following companies saw new developments that may affect trading of their securities on Wednesday (March 25):

Singapore Airlines (SIA): The monthly salary of cabin crew at the national carrier will fall by as much as 60 to 70 per cent owing to the loss of flying hours, The Business Times understands. Pilots will take compulsory no-pay leave of between four and seven days a month from April 1. Shares in SIA gained $0.53, or 9.9 per cent, to close at $5.89 on Tuesday.

Manulife US Real Estate Investment Trust (Manulife Reit): The Reit's management team said in a teleconference call with media and analysts on Tuesday that its leases are secure, despite tenants working from home temporarily and some tenants downsizing. Management blamed Monday's "horrific" price drop on mass selling by index funds and exchange traded funds, among other factors. Units of Manulife Reit closed at 70 US cents on Tuesday, up 26.1 per cent or 14.5 cents.

Prudential: The insurance giant on Tuesday said that in light of "continued turmoil" in public equity markets triggered by the coronavirus outbreak, it is actively evaluating other options while still preparing for a minority initial public offering of its US unit Jackson National Life. Plans to list Jackson were first announced in conjunction with the release of its results for FY2019 ended December. Prudential shares closed flat at US$18.70 on Tuesday.

United Overseas Bank (UOB), OCBC Bank: Several lenders including UOB and OCBC are revising their home loan offerings by increasing spreads in their floating rate packages while lowering their fixed rates. This comes as the Singapore inter-bank offered rate plunged in response to the Fed's two off-cycle rate cuts in March. As at 9.02am on Wednesday, UOB shares gained $0.60 or 3.2 per cent to $19.40, while OCBC rose $0.36 or 4.3 per cent to $8.67.

Olam International: The mainboard-listed agri-food giant sold its remaining 50 per cent stake in its Indonesian sugar joint venture, Far East Agri, for US$82.5 million. The buyer, Mitr Phol Sugar, had in 2017 invested US$100 million to take up a 50 per cent stake in Far East Agri. Olam shares closed up $0.14 or 11 per cent at $1.41 on Tuesday.

Cromwell European Real Estate Investment Trust (Cromwell E-Reit): The manager of Cromwell E-Reit on Wednesday said it has completed the sale of 12 assets and as well as the acquisition of three assets, all located in Europe. Units of Cromwell E-Reit gained four euro cents or 13.8 per cent to finish at 33 cents on Tuesday.

Sim Leisure Group: The theme park developer and operator announced on Tuesday that it had entered into a subscription agreement with Malaysia-based food and beverage group Tropika Kiara for over 13.4 million new shares. The move could also potentially give Sim Leisure "access to new markets, new customers as well as business opportunities". The counter closed flat at $0.22 on Tuesday.

GL Limited: The mainboard-listed hospitality group announced on Tuesday that hotels under its hospitality subsidiary GLH will "progressively be closed temporarily" amid the Covid-19 outbreak, with the exception of a few to serve the needs of some guests. The pending closures were also prompted by the call from the UK government to practise social distancing and to halt activities. Shares of GL closed flat at $0.50 on Tuesday.

Thakral Corporation: The mainboard-listed firm has raised $5.8 million from the sale of its retail building in Japan. The net cash realised from the sale will be used to pay the debt taken up by Thakral Japan Properties to invest in Thakral Umeda Properties at the end of December 2019. The counter traded flat at 40.5 cents as at Tuesday's close.

China Sunsine Chemical Holdings: The mainboard-listed speciality rubber chemicals producer on Tuesday clarified its FY2019 cost of sales had decreased due to lower raw material cost, despite posting an overall sales increase for the same year. Shares of the company closed up 0.5 cent or 1.8 per cent to 28.5 cents on Tuesday, before the announcement was made.

Procurri Corporation: The mainboard-listed enterprise hardware supplier on Tuesday said its US subsidiary had rejected alleged discrepancies of some US$474.317. The sum formed the basis of a demand for indemnification by the sellers of a stake in Procurri's US joint venture Rockland Congruity. Procurri shares ended at 21 cents on Tuesday, up 0.5 cent or 2.4 per cent.