3 Singapore Stocks to Watch for in April

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Investors are always on the lookout for winning stocks.

Such stocks often enjoy catalysts that can propel their business to the next level.

These catalysts may come in the form of an encouraging business deal or collaboration, the release of a new product, or a strategic review to realign the business.

While such events typically take time to observe and play out, investors may be imbued with new confidence that the business can grow both its top and bottom lines.

And as the company’s net profit rises, its share price should also follow.

Here are three Singapore stocks with interesting announcements and/or catalysts that you should watch out for.

Singapore Exchange Limited (SGX: S68)

Singapore Exchange Limited, or SGX, is Singapore’s sole stock exchange operator.

The blue-chip group has been introducing new products in the last two years to broaden its slate of available tools that investors and fund managers can use to enhance their investment portfolios.

One example was Singapore Depository Receipts (SDRs) that were introduced in July last year to allow Singapore investors to purchase Thai-listed blue-chip stocks.

Earlier this month, SGX announced its plan to launch interest rate derivatives in the second half of 2024 (2H 2024).

These derivatives include short-term interest rate futures that are linked to the Singapore Overnight Rate Average (SORA) and Tokyo Overnight Average Rate (TONA).

This launch will add to SGX’s growing derivatives franchise to provide a wider set of solutions for investors to hedge the fluctuations in interest rates.

They will also build on the bourse operator’s current slate of long-term interest rate futures that have attracted diverse international participants.

In addition, the three-month TONA Futures will complement SGX’s portfolio of Japanese derivatives as the country ends its negative interest rate policy.

This move by SGX is promising as it increases the group’s product slate to provide its clients with more options to manage their portfolios’ exposure.

With increased trading volumes, SGX could see its revenue and profits shoot up in time to come, similar to the strong set of results it reported for its fiscal 2024 first half.

Investors can expect more SDRs to be released in April as SGX seeks to increase investor participation.

Union Gas (SGX: 1F2)

Union Gas is a provider of fuel products with three key business segments – liquefied petroleum gas (LPG), natural gas (NG) and diesel.

The group has a fleet of more than 200 vehicles serving more than 200,000 households in Singapore.

Just last week, Union Gas announced that it intends to broaden its fuel product offerings to include electric vehicle (EV) charging solutions.

This follows the recent signing of a memorandum of understanding (MOU) with Hong Kong’s Deltrix Limited, an EV charging solutions provider.

Union Gas currently operates four EV charging nozzles at its headquarters and plans to add 12 more nozzles at its location over the next two years.

Charging stations will also be installed at its fuel station at 50 Old Toh Tuck Road soon with the group planning to explore other locations around Singapore.

CEO Teo Hark Piang mentioned that the MOU with Deltrix also covers Japan and the Southeast Asia region, so these are potential countries and regions that Union Gas may explore for future business developments.

Singapore Post Limited (SGX: S08)

Singapore Post, or SingPost, is a postal and eCommerce logistics provider in the Asia Pacific region.

The group serves customers in more than 220 destinations and employs more than 4,900 staff in 13 offices worldwide.

SingPost recently concluded its strategic review and is seeking to transform itself into a pure-play logistics provider in three years.

This review was initiated back in May 2023 with Merrill Lynch Singapore being appointed as SingPost’s financial advisor.

The strategic review has five main pillars that will reorganise the group and help it to scale both its Singapore, Australia, and International businesses.

The board of directors feels that SingPost’s current share price does not reflect the intrinsic value of the group.

One of the key initiatives to help unlock value is the planned divestment of non-core assets.

SingPost has identified a list of assets and businesses that can be monetised to recycle capital.

This list includes selected properties along with various international assets.

Proceeds from these divestments will help to reduce debt, support growth investments, and also potentially be paid out as dividends to shareholders.

The remainder of 2024 could see SingPost announcing selective divestments in line with the findings from its strategic review.

These events could act as a catalyst for the group’s share price to recover from the current multi-year low.

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Disclosure: Royston Yang owns shares of Singapore Exchange Limited.

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