Market Snapshot

Singapore stocks opened lower on Monday. STI fell 0.2%; TheHourGlass rose 3%; SingPost rose 1%.

Stocks in Focus

ST Engineering: Its wholly owned unit has agreed to sell its entire 49 per cent interest Shanghai Technologies Aerospace Company (Starco), which provides airframe maintenance, repair and overhaul services, for a 680.5 million yuan (S$124.50) cash consideration. The buyer, China Eastern Airlines Corporation, which already owns 51 per cent of Starco as at Monday, will own 100 per cent of the joint venture post-sale. The divestment will yield a one-off gain of around S$48.1 million, based on the S$60.2 million carrying value for Starco, ST Engineering said on Monday. The counter closed down S$0.19 or 2.2 per cent at S$8.49 on Friday.

TheHourGlass: The luxury watch retailer on Friday reported a 23.2 per cent rise in net profit to S$75.7 million for the six months ended Sep 30, from S$61.4 million in the year-ago period. The group said that it incurred higher operating expenses in the half-year, due to increased depreciation of property, plant and equipment versus the previous corresponding period. It declared an interim dividend of S$0.02 per share, payable on Dec 8. Shares of The Hour Glass closed 1.9 per cent or S$0.04 lower at S$2.06 on Friday, before the results were released.

Frencken: The semiconductor player on Monday posted a 7.5 per cent rise in net profit for its third quarter ended Sep 30 to S$9.9 million from S$9.2 million in the previous corresponding period. Revenue for Q3 rose 6.5 per cent to S$211.5 million from S$198.6 million in the previous corresponding period. Shares of Frencken closed at S$1.54, S$0.05 or 3.145 per cent down on Friday.

Geo Energy Res: The Indonesian coal producer on Friday posted a 55 per cent decline in net profit to US$3.2 million for the third quarter ended Sep 30, from US$7 million the year before. This was despite higher revenue, which improved 62 per cent on the year to US$136.6 million from US$84.3 million. The company declared an interim cash dividend of S$0.001 per ordinary share. It will be paid on Dec 1, after the ex-dividend date of Nov 21. Its shares closed 2.2 per cent or S$0.01 lower at S$0.45 on Friday, before the results were released.

Stamford Land: The property group reported a 4.1 per cent rise in net profit to S$15.8 million for its first half ended Sep 30, from S$15.2 million in the year-ago period. This translates to earnings per share of S$0.0106, a 5 per cent increase from the S$0.0101 in H1 FY2025, the company said on Friday. It did not declare a dividend for the period under review. Shares of Stamford Land closed 1 per cent or S$0.005 lower at S$0.485 on Friday, before the news.

SG Local News

Singapore Key Exports Jump 22% in October, Much Stronger Than Expected

Singapore’s key exports expanded 22.2 per cent in October, beating expectations as electronics and non-electronics grew.

Non-oil domestic exports (Nodx) expanded 22.2 per cent in October from a year ago, after a revised 7 per cent expansion in September, data from Enterprise Singapore (EnterpriseSG) on Nov 17 showed.

The reading was well above the 7.5 per cent rise forecast by economists in a Bloomberg poll.

DBS and OCBC Draw Positive Views, but UOB Outlook Tempered by Provisions in Q3

Analysts are positive on DBS Bank and OCBC Bank after the two banks posted strong third-quarter results, but more wary of UOB, whose earnings for the period were hit by higher loan provisions.

They also cautioned that all three banks could face more pressure on lending margins as interest rates fall and earlier hedges expire, even though DBS’ hedging strategy has helped cushion the impact of lower Singapore and Hong Kong benchmark rates so far.

Interest rate hedges are financial contracts that help banks keep earning a steady interest income even when market rates fall.