Singapore Stock Market News

SMRT Corporation - Positives from rail reform likely overblown

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Publish date: Mon, 07 Dec 2015, 10:50 AM
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■ Transport Minister's speech on 4 Dec hinted again at rail industry restructuring.

■ While capital-unlocking through an asset sale is a positive, market views that the government will grant favourable terms to SMRT are unwarranted.

SMRT's unresolved obligation under the old rail regime represents a key obstacle to obtaining its desired terms in its negotiation with the government.

Maintain Reduce. Possible unfavourable terms for the rail sale is a key negative.
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