INSTITUTIONS were net sellers of Singapore stocks over the five trading sessions spanning Oct 18 to 24, with S$158 million of net institutional outflow, a similar pace to the preceding five sessions of S$144 million of net outflow.

Stocks that led the net institutional outflow were DBS, CapitaLand Integrated Commercial Trust, CapitaLand Ascendas Reit, Genting Singapore, Seatrium, CapitaLand Investment, UOB, Sembcorp Industries, Mapletree Logistics Trust, and Singtel.

Meanwhile, OCBC, Keppel DC Reit, Jardine Cycle & Carriage, Thai Beverage, ST Engineering, Yangzijiang Shipbuilding Holdings, Frasers Centrepoint Trust, Sats, DFI Retail Group and Venture Corporation led the net institutional inflow.

Wee Hur and Yanlord Land saw the next highest net institutional inflow and maintained market values of S$459 million and S$1.3 billion, respectively, as at Oct 24.

From a sector perspective, the five sessions saw Reits again book the most net institutional outflow, while the consumer non-cyclicals again booked the most net institutional inflow.

Nine primary-listed companies conducted buybacks with a total consideration of S$17.8 million. This was less than the usual quota and was half the consideration booked the preceding week.

However, CapitaLand Investment bought back a similar number of shares to the preceding week, with 1,750,900 shares at an average price of S$2.96 per share acquired on Oct 22.

This brings the total shares repurchased to 1.9 per cent of its issued shares (excluding treasury shares) since the beginning of the current mandate.

CapitaLand Investment is scheduled to provide a Q3 FY2024 (ended Sep 30) business update before the Nov 6 open.

Digital Core Reit Management also acquired 652,500 units of Digital Core Reit between Oct 18 and 24. This brings the total units repurchased to 1.22 per cent of its issued units since the beginning of the current mandate.

The manager has also noted in its Q3 2024 business update that it has repurchased 22.2 million units at an average price of US$0.574 year-to-date, delivering 1.5 per cent distribution per unit (DPU) accretion.

On Oct 22, Parkway Trust Management Limited, the manager of Parkway Life Reit, announced plans to raise at least S$180 million through a private placement of new units at S$3.80 per unit.

The manager noted S$159.9 million (88.8 per cent of the proceeds) will fund the acquisition of 11 nursing homes in France, with S$20.1 million (11.2 per cent) covering related fees and expenses. The new units are expected to be issued on or around Nov 1.

For a second consecutive week, fewer director interests and substantial shareholdings were filed than the usual quota, with 40 filings for less than 20 primary-listed stocks.

Directors or CEOs filed seven acquisitions, and two disposals, while substantial shareholders filed seven acquisitions and six disposals.

Sembcorp Industries
On Oct 16, Sembcorp Industries’ subsidiary, Sembcorp Financial Services, priced S$350 million 3.65 per cent certified rate guaranteed notes due 2036 under its S$5 billion Euro Medium Term Note (EMTN) Programme Series 001 Notes.

The offering was nearly four times oversubscribed, attracting strong demand from a diverse group of high-quality fixed income investors, including global insurance companies, asset managers and banks.

The net proceeds from the notes will be used to finance or refinance new or existing eligible green projects, as defined in the Sembcorp Green Financing Framework (2024). This framework, updated effective Oct 1, also references the Green Bond Principles and Green Loan Principles, and outlines criteria for Green Finance Transactions, including green bonds, loans and revolving credit facilities.

Both Sembcorp Industries and Sembcorp Financial Services established the S$5 billion EMTN Programme on Jul 31, 2023.

Sembcorp Industries non-executive and independent director Yap Chee Keong acquired S$250,000 in principal amount of the EMTN Series 001 Notes.

Yap was appointed to the board in October 2016 with management and audit expertise, as well as experience in industry sectors including energy, infrastructure and real estate.

He is also on the boards of several more companies, including Shangri-La Asia, Olam Group, Ensign InfoSecurity, Pacific International Lines, Singapore Life Holdings and Seatrium.

He has held key roles such as executive director of The Straits Trading Company and chief financial officer of Singapore Power Group, and has contributed to various regulatory and advisory committees in Singapore.

Yap has also served on the board of Accounting and Corporate Regulatory Authority (ACRA) and its Public Accountants Oversight Committee, and contributed to Monetary Authority of Singapore, Singapore Exchange (SGX) and ACRA working groups on audit committee guidelines and board risk committee guidelines.

Sembcorp Industries launched its climate change strategy in 2018 and its strategic transformation plan in 2021. By June 2024, it achieved 10 gigawatts of renewables and met its 2025 emissions target early. Its subsequent 2024-2028 plan aims for 25 GW of renewables by 2028 and net-zero emissions by 2050.

The company announced its first Green Financing Framework in May 2021, and as at Jun 30, 2024, green and sustainability-linked borrowings comprised 39 per cent of Sembcorp Industries total debt of S$8.4 billion.

For its H1 FY2024 (ended Jun 30), the group president and CEO of Sembcorp Industries, Wong Kim Yin, noted that its resilient results, despite lower power prices and major maintenance, highlight the strength of its contracting strategy and robust portfolio, positioning the group well for the 2024-2028 strategy and growing corporate demand.

In H1 FY2024, the group reported lower contributions from the gas and related services segment due to planned maintenance in Singapore and higher curtailment in China’s renewables segment.

This was offset by increased earnings from the integrated urban solutions segment, driven by land sales in Vietnam and Indonesia.

Looking ahead, the group expects higher earnings from the gas and related services segment in the second half of the year, while renewables may see lower earnings due to seasonality and macroeconomic challenges in China.

GuocoLand

Between Oct 21 and 22, GuocoLand chairman and non-independent non-executive director Quek Leng Chan increased his deemed interest, with a purchase in the open market by Associated Land Sendirian Berhad. The shares were acquired at S$1.59 per share. His preceding acquisition was on Jun 10, with 56,000 shares acquired at S$1.50 per share.

Quek maintains a 71.86 per cent deemed interest in the leading real estate group that offers comprehensive capabilities across the entire real estate value chain, including planning and design, property investment, development, management, and asset management.

The group’s investment properties, valued at S$6.56 billion as at Jun 30, 2024, are situated in its primary markets of Singapore, China and Malaysia.

For its FY 2024 (ended Jun 30), GuocoLand achieved a revenue of S$1.82 billion, marking an 18 per cent increase from FY23. Both the property investment and property development segments reported double-digit revenue growth. The strategy to enhance recurring income from property investment led to a 35 per cent rise in rental revenue, driven by new leases at Guoco Midtown.

The group has noted that the upcoming retail operations at Guoco Midtown II and Lentor Modern are also expected to further boost its recurring income base in the coming years.

Quek also relayed in September that with its strong core business performance and comprehensive capabilities, GuocoLand is well-positioned to navigate uncertainty, and will maintain prudent capital management to ensure resilience against unforeseen shocks.

TOTM Technologies

On Oct 22, TOTM Technologies substantial shareholder Thomas Clive Khoo increased his direct interest in the Catalist-listed company to 6 per cent.

The 1.7 million shares were acquired at an average price of S$0.034 per share. Khoo emerged as a substantial shareholder of TOTM Technologies seven weeks ago on Sep 6.

Also on Oct 22, executive director and CEO Irawan Mulyadi acquired 350,000 shares at S$0.035 per share, increasing his total interest in the provider of end-to-end identity management and biometrics products from 1.75 per cent to 1.77 per cent.

Previously a non-executive director, he was also redesignated to his current role on Oct 22, following an internal strategic review of the group’s direction.

On Sep 10, TOTM Technologies outlined five major strategies in its corporate and business update:

• Refocusing on core strengths as a digital identity and biometrics integrator in Indonesia;

• Establishing partnerships in artificial intelligence, cybersecurity and e-certification to enhance existing identity management platforms;

• Reducing consultancy support in six global locations, redirecting resources to Indonesia and Singapore, and consolidating headcount in India to lower costs;

• Reviewing organisational structure and workflow for better efficiency and service levels; and

• Accelerating joint ventures and partnerships to develop new capabilities and seize opportunities in Indonesia and international markets.

Inside Insights is a weekly column on The Business Times, read the original version.

Enjoying this read?

• Subscribe now to the SGX My Gateway newsletter for a compilation of latest market news, sector performances, new product release updates, and research reports on SGX-listed companies.
• Stay up-to-date with our SGX Invest Telegram channel.