Welcome to this week’s edition of top stock market highlights.
Budget 2025 tax incentives
The Singapore government plans to introduce tax incentives to spur more companies and fund managers to list on the Singapore Exchange (SGX: S68).
In addition, there will be tax incentives for fund managers which invest substantially all of their assets under management (AUM) in Singapore-listed equities.
These measures are just the first batch recommended by the Equities Market Review Group which was set up by the Monetary Authority of Singapore back in August 2024.
They were announced and accepted by Prime Minister and Minister for Finance Lawrence Wong during his Singapore Budget 2025 speech.
The spirit of these measures is to encourage more companies to consider Singapore as an attractive listing destination, thereby increasing demand for Singapore-listed equities and improving trading liquidity and valuations on the local bourse.
A corporate income tax rebate of 20% will be given to companies that seek a primary listing, which those pursuing secondary listings will enjoy a rebate of 10%.
The rebate will be capped at S$6 million per year of assessment for companies with a market capitalisation of at least S$1 billion.
It will be S$3 million per year for companies below this market capitalisation threshold.
This scheme is open till the end of 2027 and the company needs to remain listed for five years.
For new fund managers who wish to list in Singapore for fund-raising, they will receive a concessionary tax rate of just 5% if the fund or its holding company gets a primary listing and remains listed for five years.
The fund manager also needs to pay out dividends and meet requirements for minimum professional headcount and AUM.
As for the tax exemption, fund managers need to have at least 30% of their AUM invested in Singapore-listed equities.
More details will be shared soon for the above, so stay tuned.
United Overseas Bank (SGX: U11)
United Overseas Bank, or UOB, reported a sparkling set of earnings for 2024.
The blue-chip lender saw total income rise 3% year on year to S$14.3 billion.
The main driver was a 7% year-on-year rise in fee and commission income to S$2.4 billion as net interest income stayed flat at S$9.7 billion.
Operating profit inched up 1% year on year to S$8.2 billion while net profit came in at S$6 million, up 6% year on year and at a record high.
The bank enjoyed a 5% year-on-year increase in gross customer loans to S$337.8 billion but saw its net interest margin decline from 2.09% in 2023 to 2.03% in 2024 because of slightly lower interest rates.
In line with these good results, UOB declared a final dividend of S$0.92, up from S$0.85 a year ago.
For 2024, the total dividend stood at S$1.80, around 6% higher than the S$1.70 paid out in 2023.
Meanwhile, UOB also declared a special dividend of S$0.50 to be paid in two tranches to celebrate its 90th anniversary.
A new share buyback programme costing S$2 billion has also been introduced, forming part of a S$3 billion package to return excess capital to shareholders.
UOB maintained a sanguine outlook for 2025 and expects high single-digit loan growth along with double-digit fee income growth.
Apple (NASDAQ: AAPL)
Apple has revealed a new budget-friendly iPhone, iPhone 16e, that includes its new artificial intelligence (AI) software Apple Intelligence.
That’s not all.
This new iPhone model also features a design that is aligned with Apple’s more expensive iPhone 16 and iPhone 16 Pro models, complete with face recognition technology and an upgrade camera system.
The new product will retail at US$599 on 28 February and includes the new A18 chip that also features in the more expensive models.
Another interest fact is that the iPhone 16e will be fitted with Apple’s own cellular modem chip, the C1, rather than one supplied by Qualcomm (NASDAQ: QCOM).
This move is to reduce reliance on third-party vendors and bring more of its production in-house.
The new battery will offer 24 hours of battery life, double that of the second-generation iPhone SE.
Apple Intelligence is gearing up to be the key reason why consumers choose to upgrade their existing iPhones.
However, Apple is facing stiff competition from other mobile phone manufacturers that are also incorporating AI into their systems.
Just last week, we reported that Apple was teaming up with Alibaba (SGX: HBBD) to roll out AI features for Chinese users.
Together, these moves could spark a surge in demand for Apple’s iPhones, which still remain the company’s main revenue generator.
Attention: Investors aiming for both growth and peace of mind. We’ve pinpointed 5 SGX stocks known for consistent dividends. If you want to build a retirement portfolio, but don’t want the stress of stock watching, this report is for you. Click HERE to download now.
Follow us on Facebook and Telegram for the latest investing news and analyses!
Disclosure: Royston Yang owns shares of Apple.
