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Singapore stock market and companies daily report (Singapore’s 1Q14 GDP, Wilmar Int’l, Cache Logistics Trust) (April 14, 2014)

April 14, 2014, Monday, 05:33 GMT | 00:33 EST | 10:03 IST | 12:33 SGT
Contributed by Shares Investment

- Singapore’s gross domestic product grew 5.1 percent year-on-year in 1Q14 according to advance estimates by the Ministry of Trade and Industry. The results are lower than the 5.5 percent year-on-year growth  seen in 4Q13. The main caveat arose from slower growth in the service industry, which came in at 4.7 percent year-on-year versus 5.9 percent in the previous quarter. This was attributed to lesser growth registered in the wholesale, retail trade, finance and insurance sectors.

- Wilmar International inked a 55:45 joint venture (JV) agreement with Great Wall Food Stuff Industry Company, a Myanmar based company, to produce and sell sugar and its by-products. Under the agreement, the JV company, Great Wall – Wilmar Holdings, will acquire all the existing sugar-related business, mills and plants of Great Wall and its associates, which include two sugar mills, one bio-ethanol plant and an organic compound fertiliser plant.

- Cache Logistics Trust agreed to jointly develop and lease a build-to-suit warehouse with a net lettable area of 928,100 square feet located at Greenwich Drive, Tampines LogisPark, with its sponsor CWT. The facility with a total development cost of $105.1 million will be used as DHL’s new regional office, and is expected to provide a stable and recurring cash flow to the trust, given the tenant’s strong credit profile.

- Singapore Shipping Corporation proposed to dispose Nanyang Maritime (Singapore) (NMS) to ISK Singapore for a sale consideration of $1.3 million. The disposal is in view of the purchaser’s move to reform its inorganic business portfolios, given that NMS was primarily formed to undertake physical distribution services of the purchaser.

- Giken Sakata proposed to acquire 51 percent of issued share capital in Cepu Sakti Energy for a purchase consideration of $48 million. The latest acquisition offers a potential opportunity for the group to diversify its business operations into the oil and gas sector as well as a platform to expand its earnings base.

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