Welcome to this week’s edition of top stock market highlights.
Jetstar Asia
In a surprise shake-up of the budget airline industry, Singapore-based low-cost airline Jetstar Asia announced that it will cease operations on 31 July.
This closure is part of a “strategic restructure” by its parent company, Qantas (ASX: QAN).
More than 500 employees will lose their jobs because of this closure, but Jetstar Asia will provide support, which includes retrenchment benefits and employment opportunities either within the Qantas group or elsewhere.
The low-cost carrier will continue to operate flights in the next seven weeks out of Singapore while slowly scaling down its operations till 31 July.
The closure was blamed on escalating supplier costs, airport fees, and aviation charges.
The airline also cited growing capacity and intense competition in the region as factors that influenced its decision.
Jetstar Asia was expected to post a loss of A$35 million before interest and taxes are factored in for this financial year (ending 30 June 2025).
Records from the Accounting and Corporate Regulatory Authority (ACRA) show that the airline has been bleeding for several years.
Of the four fiscal years stretching from 30 June 2021 to 30 June 2024, the airline was profitable for just one fiscal year, turning in a profit of S$12.5 million in 2023.
With costs expected to continue increasing, the airline said that it would put pressure on its ability to offer low fares, thus forcing it to shut down.
Retrenched employees will receive a payment of four weeks per year of service, a bonus for this fiscal year, a special “thank you” payment, and other benefits.
Singapore Airlines (SGX: C6L) has stepped in to explore potential employment opportunities for affected staff and is working closely with Jetstar Asia.
16 routes are affected by Jetstar Asia’s closure, but 12 of these are served by other airlines.
Changi Airport Group (CAG) will work to restore connectivity for the remaining four locations.
Ground handler SATS Ltd (SGX: S58) is also working with Jetstar Asia to ensure a smooth and orderly transition.
Link REIT (HKSE: 0823)
Link REIT is looking at listing a REIT in Singapore that includes properties from outside of China and Hong Kong.
Early discussions are being held with advisers on the potential initial public offer (IPO), but the company has not decided to proceed.
This IPO news is coming at a time when Link REIT is looking to diversify its operations away from property management.
If the IPO goes ahead, it will be good news for the Singapore market as it struggles to reverse a trend of delistings.
Since the beginning of 2024, just five companies have gone public on the Singapore Exchange (SGX: S68), or SGX.
Centurion Corporation (SGX: OU8)
Another company is also considering a REIT listing on the Singapore bourse.
Centurion Corporation has followed up on its January 2025 announcement that it was exploring the establishment of a REIT by submitting a listing application to the SGX and the Monetary Authority of Singapore (MAS).
The application is currently under review.
As a recap, Centurion announced in January that it was aiming to list a REIT seeded with its worker and student accommodation assets.
The REIT will be sponsored by Centurion, and the company will be working with DBS Group (SGX: D05) and UBS to explore a proposed listing.
The listing will be subject to market conditions, commercial negotiations, and approvals being obtained from both SGX and MAS before it can proceed.
The last time Centurion attempted to list its properties via a REIT was a decade ago in 2015.
Back then, the listing plan was postponed after consultations with SGX.
The exchange commented that listing a REIT would constitute a “chain listing” if the assets and operations of the applicant are substantially the same as the parent company.
As of 31 March 2025, Centurion owns and manages a portfolio of 37 accommodation assets totalling 69,929 beds.
As of this writing, shares of Centurion are up 59% year-to-date and have touched an all-time high of S$1.56.
When the market is unpredictable, where can you park your money with confidence? Our latest FREE report reveals 5 Singapore dividend-payers built to withstand global storms. Get it now and see what’s still worth holding.
Follow us on Facebook, Instagram and Telegram for the latest investing news and analyses!
Disclosure: Royston Yang owns shares of DBS Group and Singapore Exchange.
