Welcome to a brand-new week, everyone. Here are three things about the local stock market that you might be interested in today.
1. The Straits Times Index (SGX: ^STI) climbed 43.6 points, or 1.4%, to end the day at 3,102.8. Of the 30 index components, 22 finished in the green, with Venture Corporation Ltd (SGX: V03) leading the pack. The electronics manufacturing service provider’s shares rose 5.3% to S$14.40 each.
Meanwhile, the biggest loser of the index was Dairy Farm International Holdings Ltd (SGX: D01), which fell 1% to US$9.01. Three other blue-chips finished Monday in the red, with the remaining four ending the day unchanged.
2. CapitaLand Limited (SGX: C31) is acquiring a prime office building in Shanghai, China.
In an announcement before the stock market opened today, CapitaLand said that it has formed a 50:50 joint venture with an unrelated third party to acquire around 70% of Pufa Tower in Shanghai, China, for 2.75 billion yuan (S$546.3 million). The real estate would be a seed asset for a value-add fund which the property giant is setting up to invest in commercial properties in Asia’s key gateway cities.
The acquisition also marks CapitaLand’s first commercial property in Shanghai’s core Lujiazui central business district (CBD) in the Pudong New Area.
Lucas Loh, CapitaLand’s president for China and investment management, said:
“We are pleased to enter Shanghai’s core Lujiazui CBD soon after securing our third Raffles City development in the city. Shanghai is the top investment destination in China, with strong end-user demand for commercial properties. The acquisition of Pufa Tower, an operational asset, will immediately contribute to the Group’s recurring income. It will also strategically diversify CapitaLand’s commercial portfolio into a key CBD to capture new growth, while entrenching the Group’s leadership as the foreign developer with the largest portfolio under management in Shanghai.”
CapitaLand sees significant potential to enhance Pufa Tower’s asset value through a comprehensive asset enhancement initiative. The property, a 34-storey tower with three basement levels of car park, has not undergone a major renovation since its completion in 2002.
CapitaLand’s share price closed at S$3.14 today, up 2.6% for the day.
3. Elsewhere, SPH REIT (SGX: SK6U) added 1% to S$1.02.
On Friday (4 January), the retail real estate investment trust (REIT) announced its financial results for the first quarter ended 30 November 2018. Gross revenue for the reporting quarter went north by 0.6% year-on-year to S$53.8 million, but its net property income went south by 1% to S$41.8 million. Distribution per unit held steady at 1.34 Singapore cents. To know more about SPH REIT’s latest earnings, you can head here.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of Dairy Farm International. Motley Fool Singapore contributor Sudhan P doesn't own shares in any companies mentioned.