Wilmar slips in S’pore after anti-graft action in Indonesia; Singtel falls

SINGAPORE – Shares of Wilmar Group’s Singapore-listed entity Wilmar International fell some 3 per cent last week after the Indonesian authorities seized 11.8 trillion rupiah (S$925.2 million) from the group in a palm oil graft case.

The stock slipped below $3 for the first time since March 2020, closing on June 20 at $2.92.

Indonesia’s Attorney-General’s Office said on June 17 that the seizure was

part of efforts to recover state losses from corruption

tied to the issuance of palm oil export permits in 2022.

This comes as the Indonesian authorities are appealing against a court ruling that had cleared Wilmar and two other palm oil companies, which they accuse of paying bribes to obtain such export permits.

Wilmar said the money would be returned if Indonesia’s Supreme Court cleared the company of wrongdoing in the ongoing case, but would be forfeited in part or in full if the court ruled against it.

Shares of Singtel fell 2.28 per cent last week, closing at $3.86 on June 20.

Its Australia subsidiary Optus Mobile said on June 18 that it had reached a settlement with the Australian Competition and Consumer Commission, after the competition watchdog in October 2024 filed court proceedings against Optus over allegations of sales misconduct.

The settlement includes

a proposed A$100 million (S$83 million) penalty

, subject to approval by the Federal Court, as well as an enforceable undertaking requiring Optus to address the misconduct. These include making changes to its retail processes, systems and sales incentives.

Optus added that it has apologised to affected customers and is providing them with remediation.

Stocks react to escalating Israel-Iran conflict

Several Singapore Exchange (SGX) stocks saw increased volatility last week amid escalating tensions between Israel and Iran, which also pushed crude oil prices higher.

Shares of jet fuel trader China Aviation Oil closed 4.8 per cent higher at 88 cents on June 20.

Crude oil and jet fuel are directly related because jet fuel is refined from crude oil.

While rising oil prices can pressure fuel consumers, traders like China Aviation Oil tend to gain from wider margins and trading opportunities.

In contrast, shares of Singapore Airlines, for which jet fuel is the largest operating cost, declined, falling over 1.7 per cent during the week to close at $6.79 on June 20.

SGX-listed oil and gas companies rose, with Rex International up 4.8 per cent through the week to close on June 20 at 22 cents, while RH PetroGas inched 0.5 per cent higher to close at 20 cents.

Offshore and marine stocks gained, too.

Mermaid Maritime rose 3.6 per cent to 11 cents, Marco Polo Marine added 2.2 per cent to 4.6 cents and Seatrium inched 0.5 per cent higher to $2.06.

All of Fu Yu’s independent directors resign

Shares of Fu Yu Corp fell more than 5 per cent last week, closing at nine cents on June 20.

All

independent directors of the components manufacturer resigned

, leaving the company’s chief executive as the sole remaining board member, according to SGX filings released on June 15.

Independent directors Royston Tan and Christopher Huang resigned on June 11 following persistent attempts by former director of strategy Victor Lim to remove them from the board.

Mr Lim is also the group’s largest shareholder, holding some 29.5 per cent of Fu Yu shares as at Jan 9. He has been calling for Mr Tan and Mr Huang’s resignations since January, citing the need for a “strategic reset” of Fu Yu due to poor performance and falling shareholder value.

Independent director Daniel Poh also resigned on June 11, citing differences in opinion over Fu Yu’s direction on matters unrelated to the company’s day-to-day business. Mr Tan and Mr Huang also gave the same reason for resigning.

In an update to shareholders on June 17, group CEO David Seow said that the company is actively seeking to appoint new independent directors to the board and has reached out to the Singapore Institute of Directors to invite suitable candidates to apply.

SGX listing rules require at least one-third of the board to be independent and that the group has at least two independent non-executive directors.

In a June 20 filing lodged on the SGX after the market closed, Fu Yu said four proposed directors have been assessed by an independent party, with no findings made against their suitability for the role.

Earlier on June 20, in response to questions from the Securities Investors Association (Singapore), or Sias, Fu Yu noted that its “day-to-day operations and decision-making processes remain unaffected” by the resignation of all its independent directors.

The update comes ahead of Fu Yu’s annual general meeting on June 27.

Other market movers

Thakral Corp declined some 4 per cent last week, closing at $1.42 on June 20, even as

an initial public offering (IPO) by its associate GemLife

is expected to significantly uplift the group’s financial position and unlock growth opportunities.

Thakral announced on June 17 the IPO of GemLife Communities, an Australian over-50s lifestyle resort operator, to raise up to A$750 million at an implied post-money valuation of A$1.58 billion.

The stapled securities are expected to be listed and quoted on the Australian Securities Exchange upon successful closing of the IPO on July 3.

Thakral, which holds a 31.7 per cent stake in GemLife, intends to subscribe to additional stapled securities via the IPO.

Post-dilution, Thakral’s effective interest in GemLife will be about 16.8 per cent, the company said.

CNMC Goldmine fell 6.52 per cent last week after gold prices tumbled following the US Federal Reserve’s decision to keep interest rates unchanged at 4.25 per cent to 4.5 per cent.

The stock closed at 43 cents on June 20 as the US Fed forecast higher inflation from US tariffs and cooler growth in 2025.

Thai Beverage saw strong trading volumes throughout the week, when its stock slid some 3 per cent to close at 44 cents on June 20.

The beverage-maker reported in May that net profit declined 9.2 per cent year on year to 17.8 billion Thai baht (S$699 million) in the first half of 2025.

In an annual information meeting for shareholders in Singapore on June 20, Thai Beverage said its spirits business’ net profit fell due to lower sales and higher raw material costs.

Net profit for its non-alcoholic beverage and food businesses also declined.

However, its beer business delivered an increase in net profit, thanks to strong sales and favourable raw material costs.

What to look out for this week

Watch out for further market volatility as the conflict in the Middle East continues to unfold.

Over the weekend, US President Donald Trump said the US

completed strikes on three nuclear sites in Iran

, prompting a fresh barrage of missiles from Iran towards Israel.

Additionally, keep an eye out for Singapore’s consumer price index and manufacturing output for May, which are a key gauge of inflation and industrial momentum amid ongoing tariff uncertainties.

Correction note: An earlier version of this report may have given the impression that Singtel’s share price declined solely as a result of Optus’ penalty settlement, when there could have been other reasons for the volatility, such as the conflict in the Middle East. Singtel has also clarified that Optus’ A$100 million penalty settlement has been provided for.