Market Snapshot

Singapore stocks opened higher on Tuesday. STI rose 0.2%; ST Engineering rose 2%; Yangzijiang Shipbuilding rose 0.9%; Genting Singapore rose 0.7%; OCBC rose 0.6%; UOB rose 0.5%; SIA fell 0.4%; DBS fell 0.2%.

Stocks in Focus

Olam Group: The agri-business company announced on Monday that its food, feed and fibre operating business, Olam Agri, secured a seven-year US$100 million financing facility, which will initially be guaranteed by the group. This unit will become the guarantor at some point, after the Singapore-listed group completes the proposed sale of its 44.58 per cent stake in Olam Agri to the Saudi Agricultural and Livestock Investment Company. Proceeds from this move will be used by Olam Agri to back the flow of rice from India, Thailand and Vietnam to African countries. The counter closed down 4.4 per cent or S$0.04 at S$0.875 on Monday, prior to the announcement.

Top Glove: The glove manager on Monday said Lim Jin Feng and Ng Yong Lin will take over the helm as joint managing directors from 61-year-old incumbent Lim Cheong Guan on Apr 1. Lim Jin Feng is the son of the glove maker’s founder, Lim Wee Chai, and joined the company in 2011. Ng started in the group in 2009 before becoming chief operating officer in 2021. Shares of Top Glove fell 4.2 per cent or S$0.008 to close at S$0.182 on Monday, before the announcement.

UMS Integration: The precision engineering group on Monday said it bought the remaining 30 per cent stake in Starke Singapore, a privately held aluminium alloy products supplier, for S$8.2 million. UMS added that it would streamline Starke’s business operations with the group, and “better manage” its overhead costs. The acquisition will be funded by the group’s internal resources and/or bank borrowings. UMS shares rose 3.5 per cent or S$0.05 to close at S$1.50 on Monday, before the news.

SG Local News

Singapore Says It May Review GDP Outlook on Iran Crisis, Oil

Singapore Deputy Prime Minister Gan Kim Yong said the city-state will revise its economic outlook, if needed, due to the crisis in the Middle East which could push up global energy prices.

“Depending on how protracted the conflict is, higher energy prices could lead to higher costs for businesses and consumers and weigh on the global and Singapore economies,” he told parliament on Monday. “We are monitoring the developments closely and will reassess our GDP and inflation forecasts if necessary.”

Singapore and South Korea Launch AI Alliance

Singapore and South Korea on Monday (Mar 2) launched an artificial intelligence alliance, with Seoul pledging to establish a US$300 million (S$382 million) global fund here by 2030 to support joint AI development.

Visiting South Korean President Lee Jae Myung announced the Korea-Singapore AI alliance at the Korea-Singapore AI Connect Summit held at Shangri-La as part of his three-day visit to Singapore.

The summit was convened to bring together diverse perspectives from future AI leaders of both countries to jointly take the lead in the global AI market, the office of the Secretary to the President for Foreign Press Affairs, South Korea, said in a press release.

Malaysia's Mi Technovation Weighs Listing of Semiconductor Material Business on SGX

Malaysia's Mi Technovation said on Monday it was considering a separate listing of its semiconductor material business on the Singapore Exchange.

The proposed listing is still at a preliminary stage, with details yet to be determined, Mi said in a statement. The move is expected to provide the company and the segment a more diverse fundraising platform and increase financial flexibility.

Mi's board has also appointed Singapore's Oversea-Chinese Banking Corp as the issue manager and bookrunner for the proposed listing.