SG Morning Highlights | Singapore commercial EV sales to see boost from incentives, but limited options a barrier: Fitch Solutions
Good morning mooers! Here are things you need to know about today's Singapore:
●Singapore shares opened higher on Wednesday; STI up 0.19%
●Global yield curve inverts in signal a recession is brewing
●Stocks to watch: IHH Healthcare, BRC Asia, Jumbo, SIA
●Latest share buy back transactions
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Market Trend
Singapore shares opened higher on Wednesday. The $FTSE Singapore Straits Time Index(.STI.SG$ gained 0.19 per cent to 3,282.60 as at 9.03am.
Advancers / Decliners is 56 to 56, with 42.25 million securities worth S$54.09 million changing hands.
Breaking News
Singapore's range of electric vehicle (EV) purchase incentives is expected to boost both passenger and commercial EV sales in the near term, albeit at varying paces.
In a report issued on Monday (Nov 28), Fitch Solutions Country Risk & Industry Research projected a 394.6 per cent growth in Singapore's EV sales for 2022, driven mainly by government incentives. It nonetheless cautioned that the limited commercial EV options available in the city state will "remain a significant barrier to adoption" as it believes commercial EV sales is "highly dependent on model availability".
According to Fitch Solutions, Singapore's Commercial Vehicles Emissions Scheme (CVES) is a key motivator for businesses to adopt cleaner commercial vehicles (CVs). The scheme includes penalties of S$10,000 for the most polluting vehicles, while electric CVs qualify for up to S$30,000 in incentives.
Global bonds joined US peers in signalling a recession, with a gauge measuring the worldwide yield curve inverting for the first time in at least two decades.
The average yield on sovereign debt maturing in 10 years or more has fallen below that of securities due in one-to-three years, according to Bloomberg Global Aggregate bond sub-indexes. That has never happened before based on data going back to the beginning of the millennium.
The inversion of the yield curve is typically seen to herald a recession, as investors switch money to longer-term bonds due to pessimism over the economic outlook. Those fears are growing as policymakers around the world pledge further monetary tightening to tame rising consumer prices.
Retaining 377A – a colonial-era law criminalising sex between men – makes Singapore look anachronistic as a modern financial hub, and has made it hard to convince LGBTQ talent to stay and contribute, Workers' Party Member of Parliament (MP) Louis Chua said on Tuesday (Nov 29).
"Many banks see that being open about being who you are can make for a more productive workforce," said Chua, who works in the finance sector.
Businesses have benefited from introducing diversity policies, he added: "All these have clear, measurable impact, and should equally apply to our country and economy too, where we place a very strong emphasis on developing everyone's potential."
Stocks & REITs to Watch
$IHH(Q0F.SG$ : Malaysian hospital group IHH Healthcare reported a 54 per cent slide in its net profit for the third quarter ended Sep 30. This was due to the absence of exceptional items recognised in Q3 2021, including an increase in deferred tax assets of RM248.2 million (S$75.6 million), as well as foreign exchange losses and the effect of restating financial statements according to a reporting standards framework in hyperinflationary Turkey.
Net profit for the quarter stands at RM251.8 million, from RM550 million in the same period last year, the group announced in a bourse filing on Tuesday (Nov 29).
For the first nine months of the year, net profit came in at RM1.36 billion, a 4 per cent year-on-year drop from RM1.41 billion.
$BRC Asia(BEC.SG$ : Steel-solutions provider BRC Asia posted an 81 per cent rise in its net profit to S$50.4 million for its second half ended Sep 30, 2022, from S$27.9 million a year earlier.
The company recorded increased sales volume and higher steel prices in the year, it said in a bourse filing on Tuesday (Nov 29).
Earnings per share of the company stood at 18.36 Singapore cents for the half-year period, up from 11.46 cents the year before.
$Jumbo(42R.SG$ : Seafood restaurant operator Jumbo Group has narrowed its net loss to S$91,000 for its full year ended Sep 30, 2022, from S$11.8 million a year ago. This was mainly due to an increase in revenue from its Singapore operations with the gradual easing of Covid-19 measures, said the group in a bourse filing on Tuesday (Nov 29).
Revenue for FY2022 rose 41.3 per cent to S$115.6 million, from S$81.8 million a year ago.
Loss per share is now at less than 0.1 Singapore cent for the full-year period, from 1.8 cents a year ago.
$SIA(C6L.SG$ : Singapore Airlines (SIA) and Tata Sons, the parent company of Indian conglomerate Tata Group, have agreed to merge airlines Air India and Vistara, SIA said on Tuesday (Nov 29).
As part of the transaction, SIA will also invest 20.6 billion rupees (S$360 million) in Air India, giving SIA a 25.1 per cent stake in an enlarged Air India group.
Air India – which includes low-cost carriers Air India Express and AirAsia India – is wholly owned by Tata Sons. Meanwhile, Vistara is a joint venture between Tata Sons and SIA, with each company holding a 51 per cent and 49 per cent stake, respectively.
Latest Share Buy Back Transactions
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