Market Snapshot

Singapore stocks opened higher on Thursday. STI edged higher; Nam Cheong and NIO rose 5%; Singtel rose 1%.

Stocks to Watch

CapitaLand Investment (CLI): The real estate investment manager announced on Thursday that it intends to launch its first real estate investment trust (Reit) in China, to be named CapitaLand Commercial C-Reit (CLCR). CLI applied to register the Reit with the China Securities Regulatory Commission, and applied to list the Reit on the Shanghai Stock Exchange. The listing would mark the first internationally sponsored retail China Reit and the first such China Reit by a Singapore-based company once approved. CLCR will be seeded with the mature assets CapitaMall Sky+ in Guangzhou and CapitaMall Yuhuating in Changsha, with a combined value of about 2.8 billion yuan (S$499.2 million) and a total gross floor area of 168,405 square metres. Shares of CapitaLand Investment closed 2 per cent or S$0.05 higher at S$2.54 on Wednesday.

Keppel DC Reit: The manager on Thursday posted a higher first-quarter distribution per unit of S$0.02503, up 14.2 per cent from S$0.02192 year on year on contributions from acquisitions and strong portfolio performance. Gross revenue for the quarter climbed 22.6 per cent to S$102.2 million from S$83.4 million previously. Units of Keppel DC Reit closed 3 per cent or S$0.06 higher at S$2.05 on Wednesday.

Nam Cheong: The Sarawak-based offshore marine company has secured vessel charter contracts worth up to RM317.1 million (S$94.5 million) from regional oil majors. The multi-year agreements have a firm charter period of up to two years, with options for further extension, it said on Wednesday. Seven anchor handling tug supply vessels will be deployed in Malaysian and Thai waters to support offshore operations, including towing, anchoring and logistics. Nam Cheong’s shares closed 2.9 per cent or S$0.015 higher at S$0.54 on Wednesday, before the announcement.

Keppel Pacific Oak US Reit (Kore): The manager on Thursday posted a distributable income of US$9.6 million for its first quarter ended Mar 31, down 19.3 per cent from US$11.9 million in the previous corresponding period. This decline was mainly due to a lower adjusted net property income, in light of lower rental income from higher free rents due to timing differences in various leases completed for the respective periods. Units of Kore ended 1.6 per cent or US$0.003 lower at US$0.182 on Wednesday.

SG Local News

Singapore PM Says US-China Trade War Pain Will Be Felt Everywhere

Singapore Prime Minister Lawrence Wong said on Wednesday there was little comfort in the U.S. postponing most of its proposed "reciprocal" tariffs, saying the changes had already created great uncertainty around the world.

Wong also said the trade war between the U.S. and China would see trading between the countries grind to a halt, and "the pain will be felt not just by them but by countries everywhere."

While President Donald Trump has postponed the so-called reciprocal tariffs until July, Wong noted the U.S. was still imposing a 10% baseline tariff. "No company can comfortably plan long-term investments while knowing that the tariff rates could be changed at a moment's notice," he said, adding the trade war would accelerate the decoupling of the U.S. and Chinese economies.

"What we are witnessing is the remaking of the global economy – not as one integrated system, but as increasingly bifurcated ecosystems centered around the U.S. and China."

Singapore Forms "Economic Resilience" Taskforce Amid Possible Tariff-Induced Recession

Singapore's trade minister said on Wednesday that he cannot rule out a recession for the local economy this year following U.S. President Donald Trump's trade war, as he announced a taskforce to help businesses and workers address challenges.

Trade minister Gan Kim Yong, also the deputy prime minister, said at a press conference that companies in Singapore have already been affected by the trade war between the U.S. and China and warned of a further global economic impact if Trump were to put additional tariffs on semiconductor and pharmaceutical industries.

"Given potential downside risks, we cannot rule out the possibility of a recession this year," said Gan.

"Those who have manufacturing operations in China or sell to manufacturers in China for onward sales to the U.S. are already seeing cancelled orders or deferred orders."