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The Singapore Stock Market Today: Jawala Inc Makes Its Debut

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

1. The Straits Times Index (SGX: ^STI) finished Friday at 3,427.51, inching down slightly by 0.02%.

Hutchison Port Hldg Trust (SGX: NS8U) lost the most ground among the STI components. Its units were down 1.8% to US$0.27.

On the other hand, Yangzijiang Shipbuilding Holdings Ltd (SGX: BS6) emerged as the biggest winner. The shipbuilder’s shares added 6.7% to S$1.03.

In an announcement on Wednesday, Yangzijiang said that it has started buying back its shares, “affirming confidence in the value of the company”. It added that the shipbuilding market sentiment continues to be positive and that the company is confident in building up its order book at a healthy pace. As at 31 March 2018, the shipbuilder had an order book of US$4.5 billion, giving it a stable revenue stream for the next 2.5 years.

2. Centurion Corp Ltd (SGX: OU8) is acquiring a premium accommodation asset located at 121 Princess Street in central Manchester, United Kingdom, for £18.7 million (around S$33.7 million). The acquisition is expected to become earnings accretive to the group. Simultaneously, on completion of the acquisition, Centurion will enter into a letting agreement with an agent to let out the property.

Kong Chee Min, the chief executive of Centurion, commented:

“This acquisition demonstrates our continued optimism in the growth opportunities within the PBSA [purpose-built student accommodation] sector. Providing premium accommodation in a prime city centre location, this exciting new property deepens our presence in the UK and expands our student accommodation offering. 121 Princess Street will be part of our growing dwell [Centurion’s student accommodation brand] network and benefit from our established marketing and management services expertise grown through the years. With a total of 17 assets globally in our newly expanded PBSA portfolio, this acquisition further strengthens Centurion’s growth strategy.”

The acquisition, which is expected to be completed by July 2018, increases the group’s total student and workers accommodation portfolio to 27 assets, bringing the total number of beds to approximately 55,274.

Centurion shares ended the day at S$0.48, up 3.2%.

3. The local stock market welcomed a new kid on the block.

Jawala Inc (SGX: 1J7), a Malaysia-based forest resource company with a focus on industrial tree plantations situated in Sabah, debuted on the Singapore stock exchange today. The public offer tranche of 400,000 shares was 18.5 times subscribed while the placement tranche of 17.6 million shares was fully allotted.

Mohamed Nasser Ismail, who heads the equity capital market and capital market development departments at the Singapore Exchange, said:

“We are pleased to welcome Jawala Inc, a timber company focused on managing and developing industrial tree plantations using sustainable forest management practices, to Catalist. SGX looks forward to supporting the company as it looks to expand its business and invest in research efforts to improve yields, wood quality and sustainability practices.”

The company’s shares opened for trading at S$0.265 today, up from its initial public offering price of $0.25, before ending the day at S$0.26.

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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 Singapore Exchange Limited. Motley Fool Singapore contributor Sudhan P owns shares in Singapore Exchange Limited.