SIA rebounds; SGX gains ground as IPOs return, chip stocks rally

SINGAPORE – Shares of Singapore Airlines (SIA) recovered last week, rising by more than 3 per cent to close at $6.93.

Prices of oil, from which jet fuel is derived, fell on June 24 after US President Donald Trump announced on social media “a complete and total” ceasefire between Israel and Iran.

In its annual report released on June 25, SIA revealed that its chief executive Goh Choon Phong’s

pay dropped by 13.5 per cent

to $7.01 million for the financial year ended March 31, even as the airline’s earnings reached a record high of $2.8 billion.

Mr Goh’s total remuneration package for the period comprised $1.46 million in basic salary, $3.12 million in bonuses and $2.29 million in shares, with the rest of more than $145,000 in benefits.

In comparison, Mr Goh had drawn a salary of $8.1 million for the financial year 2023-2024.

Singapore Post (SingPost) shares jumped by 9.7 per cent last week, closing on June 27 at 62 cents.

Temasek on June 25 disclosed in an exchange filing that its deemed interest in SingPost – held through DBS Bank – had risen from 21.99 per cent to 22 per cent after DBS purchased 200,000 SingPost shares on June 19.

According to SingPost’s annual report released on June 24, former group CEO Vincent Phang received a prorated salary of $616,400 for the financial year ended March 31. He was let go by SingPost on Dec 21, 2024, over the mishandling of a whistle-blower complaint.

Mr Phang’s payout comprised $570,600 in fixed salary, $10,500 in Central Provident Fund contributions as well as benefits. The company’s benefits generally include medical and flexible allowances, as well as other perks such as a car allowance and long service awards, where applicable.

SGX gains as local stocks climb

Shares of the Singapore Exchange (SGX) rose 7.2 per cent last week, closing on June 27 at a five-year high of $14.72.

The local stock exchange enjoyed an uplift in trading with small and mid-cap stocks rising steadily through the week.

The Straits Times Mid Cap Index closed on June 27 up 0.42 per cent at 635.45, and the ST Small Cap Index closed up 1.63 per cent to hit 250.90.

The Straits Times Index (STI) ended the week up 0.7 per cent at 3,966.20.

Hongkong Land was the best-performing stock on the STI, having closed the week 7.6 per cent higher at US$5.84.

This was followed closely by Thai Beverage, which recorded an increase of almost 5.7 per cent to close at 47 cents. DFI Retail Group rose 3.8 per cent through the week to close at US$2.73. 

Some real estate investment trusts (Reits) did well too, such as Frasers Logistics & Commercial Trust, which was up more than 3 per cent to 85 cents, and Mapletree Industrial Trust, which rose 4 per cent to close at $2.03.

Mr Isaac Lim, chief market strategist at trading platform Moomoo Singapore, said one of the reasons the STI performed well last week despite persistent uncertainties involving tariffs, oil prices and inflation woes is that investors are “quick to view our STI as a defensive market during periods of heightened market volatility”.

He added: “The increasing calls for rate cuts in the US could be a boost to our Reit-heavy STI. Inflation, while high, has been slowing and the probability for a cut in interest rates by the Federal Reserve as early as September has jumped from 33 per cent to 90 per cent in a span of two weeks.

“If markets are starting to price in a rate cut as early as September, then our Reits would most definitely be impacted in a positive way, thus leading the STI higher.”

IPO interest returns to the market

Adding to the market’s positive momentum, hopes of a much-needed rebound for the local stock exchange were lifted by a flurry of initial public offering (IPO) activity and interest from various companies throughout the week.

One on the horizon could be in the form of a Reit listing by Japanese telecommunications group Nippon Telegraph and Telephone (NTT), one of the world’s largest data centre providers.

NTT Data Group, a subsidiary of NTT that offers technology and data solutions, on June 27 filed a preliminary prospectus with the Monetary Authority of Singapore (MAS) for a Reit listing of its data centres on the SGX mainboard.

If successful, NTT DC Reit would be the third data centre Reit to list in Singapore, following Keppel DC Reit and Digital Core Reit.

NTT DC Reit’s portfolio will comprise six data centre assets across three markets: four in the US, one in Austria and the sixth in Singapore with a total appraised value of US$1.6 billion (S$2 billion). The offering price for the Reit will be US$1 per unit.

Among the Reit’s cornerstone investors is Singapore’s sovereign wealth fund GIC, which will subscribe for 100.88 million units valued around US$100.88 million.

Other investors include AM Squared, Hazelview Securities, Pinpoint Asset Management and Viridian Asset Management.

Local software services company Info-Tech Systems told the media on June 27 that it is seeking to raise $23.4 million via a mainboard IPO comprising 24.86 million shares priced at 87 cents each.

The IPO comprises five million publicly offered shares in Singapore, and 19.86 million shares by way of international placement to selected investors.

In addition to the public offering, several cornerstone investors have also committed to buying 41.1 million Info-Tech shares.

Interior design company Lum Chang Creations also expressed interest to list on the SGX’s Catalist board and has filed its preliminary prospectus with MAS.

The company is a spin-off from mainboard-listed construction company Lum Chang following a recent internal restructuring exercise, Lum Chang said in a bourse filing on June 23.

Other businesses that have expressed interest to list on the SGX include Malaysian company Daruma Capital, which operates the Chizu Cafe chain, and Foundation Healthcare, a multi-speciality medical group backed by Temasek’s SeaTown Holdings, the media reported.

Hong Kong-listed China Medical System was also reported to be seeking a secondary listing on the mainboard of the SGX in July.

Other market movers

Semiconductor stocks saw an upswing with double-digit gains during the week despite tariff threats.

Shares of AEM, UMS Integration and Frencken were all heavily traded on the SGX, with AEM surging as much as 24.6 per cent to close the week at $1.52. UMS was up 13.3 per cent to $1.36, while Frencken gained 10.5 per cent to $1.26.

AEM, following an unexpected influx of orders in FY2025, on June 26 raised its revenue guidance for the first half of the financial year ending June 30 to between $185 million and $195 million. This is up from an earlier range of $155 million to $170 million.

AEM said that, despite the revision, its view of the business environment remains unchanged from its previous update in May, when it had flagged tariff uncertainties.

Further uplifting the sector was the launch of the National Semiconductor Translation and Innovation Centre for Gallium Nitride on June 26, a new $123 million manufacturing facility that will allow Singapore to produce advanced semiconductors.

What to look out for this week

Shares of Info-Tech, the first mainboard IPO in two years, are expected to begin trading on July 4 at 9am.

ADP, the US’ largest payrolls provider, will announce on July 2 private sector employment data for the month of June. A rise in the indicator has positive implications for consumer spending and is stimulative of economic growth.