SG Morning Call | STI down 0.8%; Centurion up 1.7%; YZJ Fin Hldg up 1.3%; ST Engineering down 1.8%; SIA, UOB down over 1%

Market Snapshot

Singapore stocks opened lower on Wednesday. STI down 0.8%; Centurion up 1.7%; YZJ Fin Hldg up 1.3%; ST Engineering down 1.8%; SIA, UOB down over 1%.

Stocks to Watch

$Sembcorp Industries(U96.SI)$: Its wholly owned subsidiary Sembcorp Utilities signed a deal to raise its interest in Senoko Energy to as much as 70 per cent, more than doubling its current 30 per cent stake. The proposed acquisition would cost a maximum of S$144 million, to be funded internally and via external borrowings. Completion is set for the second quarter of 2025. The counter closed on Tuesday 1.3 per cent or S$0.08 higher at S$6.42.

$Nio(NIO.SI)$: The Chinese electric vehicle maker on Tuesday announced it delivered 15,039 vehicles in March, 26.7 per cent higher than the previous corresponding period. For the first quarter, the group delivered 42,094 vehicles, a 40.1 per cent increase year on year. This took its cumulative deliveries to 713,658 as at Mar 31. Shares of Nio on the Singapore Exchange closed 3.3 per cent or US$0.13 lower at US$3.87 on Tuesday.

$Singapore Post(S08.SI)$ (SingPost): Several executives appear to have abruptly exited the company, with four of them in key roles, in the latest leadership changes at the national postal service provider. Lee Eng Keat, Sehr Ahmed, Noel Singgih and Michelle Lee were no longer listed on SingPost’s website as key executives as at Tuesday. They were, respectively, the head of strategy and communications, group chief people officer, group chief information officer and chief sustainability officer. Audrey Teoh, chief information security officer, and Hendrik Liyuwardi, head of IT infrastructure and service management, also announced their departure on Tuesday. “As previously shared, SingPost is undertaking an organisational restructure taking place over several months,” said a spokesperson. The counter closed unchanged at S$0.615 on Tuesday.

$Fu Yu(F13.SI)$: The company said it would make claims against six individuals in relation to its ongoing investigations into the affairs of its subsidiary Fu Yu Supply Chain Solutions (FYSCS). It has sent letters of demand against these persons to commence the process of pursuing claims. The claims are for Fu Yu’s acquisition of FYSCS and the misuse of its resources. Its largest shareholder Victor Lim, who previously made unsuccessful bids to oust Fu Yu’s directors, is among the six individuals. The counter closed flat on Tuesday at S$0.096, before the announcement.

SG Local News

Chipmaker UMC Launches US$5 Billion Wafer Fab Facility in Singapore

$United Microelectronics Corporation (UMC)$ on Tuesday (Apr 1) launched its newest wafer fabrication facility to produce semiconductor wafers.

This latest facility – about 60 per cent larger than UMC’s existing fab in the Pasir Ris Wafer Fab Park – is expected to create some 700 new jobs locally over the next few years.

Among the 700 jobs to be created are roles such as process and equipment, as well as research and development (R&D) engineers. Currently, UMC employs more than 1,800 employees in Singapore, most of whom are locals.

SIA, SBS Transit, PSA Among 19 Key Transport Entities to Face Greater Controls Under New Law

Bus operator SBS Transit, national carrier Singapore Airlines (SIA) and port operator PSA are among 19 key entities in the transport sector that will be subject to greater regulatory scrutiny under a law that came into force on Tuesday (Apr 1).

The Transport Sector (Critical Firms) Act gives the government more control over key Singapore companies in the air, land and sea transport sectors to guard against adverse influences and major interruptions in essential transport services.

The list of designated entities was published in the government gazette on Apr 1.