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The Singapore Stock Market Today: ComfortDelGro Corporation Ltd Inks Deal with Uber

Hello, everyone. Here are three things about the local stock market that you might be interested in today.

1. The Straits Times Index (SGX: ^STI), ended the day at 3,424.64 points, up 36.5 points or 1.08%. In all, there were 238 gainers to 179 losers.

Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6) was the biggest winner in the index as the shipbuilder’s shares rose 3.3% to S$1.55.

Meanwhile, ComfortDelGro Corporation Ltd (SGX: C52) fell the most today, sinking 1.5% to S$1.91.

After market close, the land transport outfit announced that it will acquire a 51% stake in Uber’s wholly-owned Singapore car rental subsidiary, Lion City Holdings Pte Ltd, with Uber retaining the remaining 49%. Lion City Holdings in turn fully owns Lion City Rentals (LCR), a private hire vehicle fleet owner with around 14,000 vehicles.

The deal, which is subject to regulatory approval, is valued at around $642 million, with a cash consideration of $295 million. The valuation is based on the value of about 12,450 vehicles, and ComfortDelGro has agreed to pay for more cars when usage grows.

The land transport giant gave details about the collaboration, saying:

“Upon completion of the transaction, LCR will be able to benefit from ComfortDelGro’s world-class fleet management and operations, which will be in the interest of drivers and consumers alike. It will also create a path for ComfortDelGro’s taxi drivers to receive ride requests on the Uber driver app, thereby increasing their potential earnings while providing users of the Uber app an opportunity to directly book a ComfortDelGro taxi. The two companies are finalising additional partnership opportunities and will make further announcements in the upcoming months.”

This announcement comes after ComfortDelGro said in August this year that it is in talks with Uber to form a “potential strategic alliance”.

2. iFAST Corporation Ltd’s (SGX: AIY) Singapore subsidiary is now offering consumers an option to invest in US-listed securities, including stocks and exchange-traded funds (ETFs), on FSMOne, its multi-products account.

The commission fee will be 0.08%, subject to a minimum of US$8.80 per trade. This is similar to the competitive pricing structure offered for Singapore-listed and Hong Kong-listed stocks and ETFs.

Shares of iFAST ended the day at S$0.87, up 2.4%.

3. Construction firm, Low Keng Huat Singapore Ltd (SGX: F1E), whose past projects include Mandarin Gallery and nex Mall, made public its financial results for the third quarter ended 31 October 2017. Quarterly revenue rose 9% year-on-year to S$13.5 million while net profit ballooned 119% to S$6.6 million.

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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 iFAST Corporation Ltd. Motley Fool Singapore contributor Sudhan P owns shares in iFAST Corporation Ltd.