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) tumbled 32.69 points, or around 1%, to end Monday at 3,324.04. Of the 30 index components, 21 were in the red; six were in the green while the remaining three finished the day flat.
Hongkong Land Holdings Limited (SGX: H78) was the biggest loser of the lot, tumbling 3.5% to US$7.14.
On the other hand, units in Hutchison Port Hldg Trust (SGX: NS8U) climbed the most, going up by 1.7% to US$0.30.
2. This morning, Singapore Exchange Limited (SGX: S68) welcomed the listing of Astrea IV private equity Class A-1 bonds. Azalea Group, a subsidiary of Temasek Holdings, is the issuer of the bonds.
Margaret Lui, the chief executive of Azalea, said:
“Until now, private equity has generally been accessible only by sophisticated and accredited investors. Astrea IV – as the first listed retail private equity bonds in Singapore – uniquely transforms PE into bonds, offering a product that allows retail investors to tap into private equity fund investments to enjoy a regular fixed income, while also diversifying their investment portfolio.”
The issuance, which has a total size of S$242 million and an annual interest rate of 4.35%, is also believed to be a world’s first.
3. Ascendas Hospitality Trust (SGX: Q1P) is acquiring a portfolio of three hotels in Osaka, Japan, for 10.29 billion Japanese yen, or S$126.1 million. The hotels are Hotel WBF Kitasemba West, Hotel WBF Kitasemba East and Hotel WBF Honmachi. The purchase price represents a 2.9% discount to the latest valuation of the hotels.
The purchase of the properties will be fully funded by debt and is expected to be accretive to distribution per stapled security. The master lease arrangement for the hotels will further enhance the income stability of the hospitality trust.
The acquisitions of Hotel WBF Kitasemba West and Hotel WBF Kitasemba East should be completed by September 2018, while the purchase of the third hotel is expected to be completed by January next year.
Units in Ascendas Hospitality Trust ended the day at S$0.77, down 0.6%.
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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 Hongkong Land Holdings Limited and Singapore Exchange Limited. Motley Fool Singapore contributor Sudhan P owns shares in Hongkong Land Holdings Limited and Singapore Exchange Limited.