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SINGAPORE – Singapore stocks ended the week higher on April 10 after the US and Iran agreed to a two-week ceasefire, putting a temporary halt to what has been almost six weeks of fighting.
The benchmark Straits Times Index (STI) rose 0.8 per cent, or 38.04 points, to 4,996.05 on April 8 after the agreement between the two nations was announced, before paring some gains to close the week at 4,989.41.
Notable gainers included Singapore Exchange (SGX), which rose more 5.5 per cent over the week to $21.09, and Venture Corporation, which gained 3.91 per cent to $15.95.
Singapore Airlines climbed to as high as $6.79 on April 8 before paring gains to close the week flat at $6.64.
But shares of Singtel bucked the trend, falling 3.17 per cent through the week to close at $4.88 on April 10.
This comes as the Central Provident Fund (Amendment) Bill was introduced in Parliament on April 7 to enable the proposed transfer of Singtel special discounted shares (SDS) from holders’ CPF accounts to their Central Depository (CDP) accounts.
Singtel SDS were offered to CPF members in 1993, when they had the option to use their CPF savings to purchase the shares at a discount to Singtel’s listing price of $1.90. A second tranche of Singtel SDS was offered in 1996.
A transfer will enable some 615,000 Singaporeans aged 50 and above to hold the shares under their own names and sell them for cash.
Subject to the Bill being passed, the CPF Board will work with Singtel, CDP and other stakeholders to facilitate the transfer, after which the CPF Board will no longer be the trustee of Singtel SDS.
Singtel SDS holders can continue holding their shares or sell their shares for cash if they wish, through Singapore Post branches or on the website of local broker Phillip Securities.
They can choose to retain the proceeds in their CPF Ordinary Account, or receive them in cash in their bank account registered with the CPF Board.
For those who choose to keep their shares, Singtel’s attractive dividend yield remains a compelling reason to do so, particularly given that interest rates on cash deposits remain relatively low, analysts said.
Singtel’s shares may also have further upside in the future – its Indian and Australian businesses are expected to be the main driver for its growth in the financial years 2027 and 2028, which could be as high as 13 per cent to 14 per cent, analysts said.
Singtel has also begun to invest heavily in digital technologies such as data centres, cloud systems and artificial intelligence, as part of its five-year growth strategy called Singtel28, launched in 2024.
Still, some analysts say Singtel is looking overvalued at its current level. The telco’s share price has more than doubled in two years while its revenue has been relatively flat, meaning further upside might be limited for now.
Trading on the SGX surged in March despite the war, with total value up 78 per cent year on year to $52.8 billion. The average daily trading value rose 62 per cent to $2.4 billion, the highest since October 2007.
