Singapore Telecom (OTC:SGAPY) Stock, Quote.Headers.trade-ideas

Singapore Telecom

Singapore Telecommunications is Singapore's leading telecoms company. It owns extensive wired and wireless networks offering data and voice services to a broad customer base. Singtel's diverse investment portfolio spreads across the region. The firm wholly owns Optus in Australia and minority equity stakes in Airtel (29%) in India; Telkomsel (35%) in Indonesia; Globe Telecom (47%) in the Philippines; and Advanced Information Services (23%) and Intouch (21%) in Thailand. Singtel is majority-owned by the Singapore government.

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Global investors view Asia as the next prime target for data center investments, thanks to the region&#39;s swiftly expanding computing and data storage needs.

Global Giants KKR, Bain Capital Target Asia&#39;s Rising Data Center Space Amid AI, Cloud Services Upswing

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Singapore&#39;s economy grew by 2.8% year-on-year during the fourth quarter, with the construction and manufacturing sectors playing a significant role in this growth.

Singapore Outpaces Expectations With Strong Q4 Growth In 2023

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Global investors are turning their attention to Asia, lured by the region&#8217;s soaring&nbsp;computing and data storage needs, driven primarily by the surge in artificial intelligence (AI) and cloud services. Private equity firms&nbsp;KKR &amp; Co Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KKR#NYSE">KKR</a>)&nbsp;and&nbsp;Bain Capital&nbsp;are leading the pack, making substantial investments in data centers across Asia.
What Happened: Global investors view Asia as the next prime target for data center investments, thanks to the region&#8217;s swiftly expanding&nbsp;computing and data storage needs. The demand is being propelled by the ongoing AI explosion, cloud services growth from behemoths like&nbsp;Amazon.com Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) and&nbsp;Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>)&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), and rising data and storage requirements due to the region&#8217;s burgeoning population, according to a&nbsp;<a href="https://www.bloomberg.com/news/articles/2024-01-14/kkr-bain-capital-plow-into-asia-data-centers-on-ai-cloud-boom">Bloomberg</a>&nbsp;report.
See Also:&nbsp;<a href="https://www.benzinga.com/news/24/01/36621660/apple-analyst-mark-gurman-deems-vision-pros-virtual-keyboard-a-complete-write-off-ahead-of-first-sal?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Apple Analyst Mark Gurman Deems Vision Pro&#8217;s Virtual Keyboard A &#8216;Complete Write-Off&#8217; Ahead Of First Sale</a>
According to data from Cushman &amp; Wakefield, demand&nbsp;in Southeast Asia and North&nbsp;Asia is predicted to grow approximately 25% annually until 2028, significantly surpassing the 14% annual growth in the U.S. Both Bain Capital and KKR have already made noteworthy moves in this space. For instance, in August,&nbsp;Bain Capital announced a deal&nbsp;to privatize&nbsp;Beijing-based data center business Chindata&nbsp;Group Holdings with an&nbsp;equity value of $3.2 billion.&nbsp;Similarly, in September, KKR agreed to purchase&nbsp;a 20% stake in Singapore Telecommunications Ltd&#8216;s (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SGAPY#OTC">SGAPY</a>) regional data center&nbsp;business for approximately $800 million.
Udhay Mathialagan, global head of Brookfield Asset Management Ltd.'s data center business, stated, "The U.S. leads, with Europe following, and Asia Pacific catching up after a slight time lag. Despite diversity, the commonality in Asia is that everyone is online. Phenomenal connectivity and top-notch data centers are essential."
Why It Matters: This shift in focus towards Asia&#8217;s data center space comes in the backdrop of several key developments. Back in May, Amazon announced its plan to invest a <a href="https://www.benzinga.com/news/23/05/32459199/amazons-aws-sets-12-7b-course-for-indias-booming-cloud-requirements">whopping $12.7 billion to strengthen its cloud infrastructure</a> in India by 2030. 
However, the journey is not without hurdles. Data center development is a complex process requiring knowledge of&nbsp;real estate, technology, local regulations, and environmental requirements, and the highly fragmented Asian market further complicates these factors. Despite these challenges, the potential returns seem to outweigh the risks, with the anticipation that Asia will make up a larger portion of global cloud revenue in the near future.
Read Next:&nbsp;<a href="https://www.benzinga.com/news/24/01/36622037/this-week-in-ai-from-microsofts-new-battery-material-discovery-to-samsungs-galaxy-ai-tease?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">This Week In AI: From Microsoft&#8217;s New Battery Material Discovery To Samsung&#8217;s Galaxy AI Tease</a>
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Global Giants KKR, Bain Capital Target Asia's Rising Data Center Space Amid AI, Cloud Services Upswing

Singapore&#8217;s economy accelerated in Q4 2023, outperforming economists&#8217; predictions largely due to the progress in the construction and manufacturing sectors.
What Happened: As reported by Reuters, Singapore&#8217;s economy grew by 2.8% year-on-year during the fourth quarter, with the construction and manufacturing sectors playing a significant role in this growth. 
This figure outshone the 1% increase recorded in Q3 2023. Throughout 2023, the economy expanded by 1.2%, a decrease from the 3.6% growth in 2022.
See Also:&nbsp;<a href="https://www.benzinga.com/news/23/12/36439103/mrbeast-vs-elon-musk-youtuber-says-twitter-compensation-wouldnt-fund-a-fraction-of-videos-he-makes?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">MrBeast Vs. Elon Musk: YouTuber Says Twitter Compensation &#8216;Wouldn&#8217;t Fund A Fraction&#8217; Of Videos He Makes &#8211;</a>
OCBC&#8217;s Selena Ling and Maybank&#8217;s Chua Hak Bin, both economists, acknowledged that the Q4 growth exceeded their forecasts. Ling had predicted a 1.8% expansion, and Chua had forecasted a 2.5% growth.&nbsp;&#8220;Green shoots are sprouting in&nbsp;exports and manufacturing, brightening the&nbsp;outlook for 2024,&#8221; Chua commented, anticipating a&nbsp;GDP growth of 2.2% in&nbsp;2024. Ling&#8217;s 2024 forecast aligns with the trade ministry&#8217;s projections, predicting growth between 1% and 3%.
The GDP grew 1.7% on a quarter-on-quarter seasonally adjusted basis in the October-December period, an improvement on the 1.3%&nbsp;expansion in the third quarter.&nbsp;The Monetary Authority of Singapore&nbsp;(MAS) is expected to review its monetary policy no later than Jan. 29.
Why It Matters: This encouraging Q4 growth comes on the heels of Singapore&#8217;s impressive economic performance in 2021. Singapore&#8217;s economy registered a <a href="https://www.benzinga.com/news/22/01/24856739/singapore-economy-registers-7-2-growth-in-2021-highest-in-over-a-decade">7.2% growth in 2021</a>, its highest in over a decade, bouncing back from a 5.4% contraction due to the pandemic in the previous year. The news of this robust growth positively impacted U.S.-listed companies in Singapore, with shares of companies such as CapitaLand Ascendas REIT (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ACDSF#OTC">ACDSF</a>), Keppel Corp Ltd (OTC:<a class="ticker" href="https://www.benzinga.com/stock/KPELY#OTC">KPELY</a>), and Singapore Telecommunications Ltd (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SGAPY#OTC">SGAPY</a>) going up.
Read Next:&nbsp;<a href="https://www.benzinga.com/markets/cryptocurrency/23/12/36438911/the-million-dollar-club-these-famous-people-said-that-bitcoin-will-reach-1m-in-2023?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">The Million Dollar Club: These Famous People Said That Bitcoin Will Reach $1M In 2023</a>
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 Benzinga Neuro, Edited by 
 
 <a href="None" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none"> 
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 The GPT-4-based Benzinga Neuro content generation system exploits the 
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KKR Commits $1.1B Investment For 20% Stake In Singtel's Regional Data Centre Business

Pre-open movers
U.S. stock futures traded higher in early pre-market trade on Thursday ahead of the three-day Jackson Hole economic symposium starting today, with Federal Reserve chief Jerome Powell scheduled to speak on Friday. Investors are awaiting earnings results from Dollar General Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dg#NYSE">DG</a>), Dollar Tree, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/dltr#NASDAQ">DLTR</a>) and Dell Technologies Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dell#NYSE">DELL</a>).
Data on Gross Domestic Product and initial jobless claims will be released at 8:30 a.m. ET. The Kansas City Fed manufacturing index for August is scheduled for release at 11:00 a.m. ET.
<a href="https://www.benzinga.com/news/22/08/28627610/advance-auto-parts-nordstrom-and-other-big-stocks-recording-losses-on-wednesday">Check out this: Advance Auto Parts, Nordstrom And Other Big Stocks Recording Losses On Wednesday </a>
Futures for the Dow Jones Industrial Average jumped 181 points to 33,139.00 while the Standard &amp; Poor&rsquo;s 500 index futures rose 32.75 points to 4,175.50. Futures for the Nasdaq index rose 119.75 points to 13,049.50.
<a href="https://www.benzinga.com/investing/global-oil-storage-trends/">Oil prices </a>traded slightly higher as Brent crude futures rose 0.2% to trade at $100.56 per barrel, while US WTI crude futures rose 0.2% to trade at $95.09 a barrel. The Energy Information Administration&rsquo;s weekly report on natural gas stocks in underground storage is scheduled for release at 10:30 a.m. ET.
The U.S. has the highest number of COVID-19 cases and deaths in the world, with total infections in the country exceeding 95,734,080 with around 1,067,540 deaths. India reported a total of at least 44,378,920 confirmed cases, while France confirmed over 34,408,900 cases.
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A Peek Into Global Markets
European markets were higher today. The STOXX Europe 600 Index climbed 0.7%, London&rsquo;s FTSE 100 gained 0.8% while Spain&rsquo;s IBEX 35 Index rose 0.7%. The French CAC 40 Index rose 0.6%, while German DAX gained 0.8%.
The Ifo Business Climate indicator for Germany fell to 88.5 in August versus a revised 88.7 in July, while the country&rsquo;s economy unexpectedly grew 0.1% on quarter in the second quarter. Manufacturing climate indicator in France declined for a second month to a reading of 104 in August. UK&rsquo;s car production surged 8.6% from a year ago to 58,043 units in July. Spanish annual producer inflation declined to 40.4% in July from a revised 43.1% annual surge in the prior month.

Asian markets traded higher today. Japan&rsquo;s Nikkei 225 rose 0.58%, China&rsquo;s Shanghai Composite rose 0.97%, while Hong Kong&rsquo;s Hang Seng Index jumped 3.63%. Australia&rsquo;s S&amp;P/ASX 200 rose 0.7%, while India&rsquo;s S&amp;P BSE SENSEX rose 0.6%.

Broker Recommendation
Credit Suisse initiated coverage on Illumina (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ilmn#NASDAQ">ILMN</a>) with a Neutral rating and announced a price target of $230.
Illumina shares rose 0.4% to $211.50 in pre-market trading.
<a href="https://www.benzinga.com/markets/cryptocurrency/22/08/28627358/bitcoin-ethereum-record-gains-here-are-other-crypto-movers-that-should-be-on-your-radar-to">Check out this: Bitcoin, Ethereum Record Gains; Here Are Other Crypto Movers That Should Be On Your Radar Today </a>
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Breaking News 
<ul>
<li>NVIDIA Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>) reported weaker-than-expected results for its second quarter on Wednesday. Nvidia is guiding for third-quarter revenue of $5.9 billion plus or minus 2%.</li>
<li>Twitter, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/twtr#NYSE">TWTR</a>) whistleblower Peiter Zatko will testify before the U.S. Senate Judiciary Committee next month regarding his complaint that the social media platform misled regulators, Reuters reported.</li>
<li>Salesforce Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/crm#NYSE">CRM</a>) reported upbeat results for its second quarter, but lowered its annual projections.</li>
<li>Singapore Telecommunications Limited (OTC: <a class="ticker" href="https://www.benzinga.com/stock/sgapy#OTC">SGAPY</a>) has announced it will sell a 3.3% stake in Indian telecom player Airtel to Bharti Telecom, for approximately S$2.25 billion ($1.61 billion), as part of its capital recycling strategy.</li>
</ul>
<a href="https://www.benzinga.com/news/">Check out other breaking news here</a>

Singapore Telecommunications Limited (OTC: <a class="ticker" href="https://www.benzinga.com/stock/sgapy#OTC">SGAPY</a>) has announced it will sell a 3.3% stake in Indian telecom player Airtel to Bharti Telecom, for approximately S$2.25 billion ($1.61 billion), as part of its capital recycling strategy.
After this transaction, the Singtel Group is expected to own an effective stake of 29.7%, which is estimated to be worth S$22 billion. This comprises a 19.2% indirect stake through Bharti Telecom and a 10.5% direct stake, it said.
Also Read: <a href="https://www.benzinga.com/markets/asia/22/08/28626598/why-alibaba-jd-nio-and-other-stocks-are-not-trading-in-hong-kong-morning-session-today">Why Alibaba, Nio And Other Stocks&#39; Trading Has Been Suspended In Hong Kong Today</a>
Fund Usage: The transaction is expected to crystallize an estimated S$0.6 billion net gain on divestment for Singtel, the firm said. The proceeds raised will fully fund the 5G capex needs and growth initiatives in the next few years for Singtel.
&ldquo;With this transaction, we will raise over S$2 billion which will help to fully meet the Group&rsquo;s needs for 5G and growth initiatives in the next few years, and put us in a strong position to grow our dividends in a sustainable way in line with our dividend policy,&rdquo; said Arthur Lang, Singtel&#39;s Group Chief Financial Officer.
Recent Initiatives: Some of Singtel&rsquo;s recent capital management initiatives to rebalance and optimize the company&rsquo;s associates portfolio include an increase in stake in Intouch Holdings, the parent company of Singtel&rsquo;s regional associate AIS, and partial divestment of Airtel Africa.
Price Action: Singtel shares were trading 1.91% higher on the SGX, while Bharti Airtel shares were trading 0.73% higher on Indian bourses.

Singapore Telecom Major To Sell $1.6B Stake In India's Airtel To Boost 5G, Growth Initiatives

Shares of U.S.-listed companies rose in Singapore on Monday after government data showed that Singapore&rsquo;s economy grew 7.2% in 2021, rebounding from a pandemic-induced 5.4% contraction in the previous year.
What&rsquo;s Moving: Singapore&rsquo;s Straits Times Index rose 0.2% on Monday following the release of the gross domestic product (GDP) data.
Shares of Ascendas Real Estate Investment Trust (OTC: <a class="ticker" href="https://www.benzinga.com/stock/acdsf#OTC">ACDSF</a>) have gained 0.7% in Singapore, while Keppel Corporation Limited (OTC: <a class="ticker" href="https://www.benzinga.com/stock/kpely#OTC">KPELY</a>) shares have risen 0.2% and Singapore Telecommunications Limited&#39;s&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/sgapy#OTC">SGAPY</a>) traded 0.4% higher.
Singapore-based ride-hailing and food delivery company Grab Holdings Limited&rsquo;s (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/grab#NASDAQ">GRAB</a>) trade on the Nasdaq.
What Happened: Singapore&rsquo;s economy expanded by 5.9% in the fourth quarter of 2021, slower than the 7.1% growth in the July-September quarter.
The city-state emerged out of recession in the first quarter of 2021 by recording a growth of 1.5%.
Last year&rsquo;s growth rate is the fastest annual pace in over a decade for Singapore.
The Singapore government has described 2022 as a &ldquo;time of transition&rdquo; as it expects GDP growth for the year in a range of 3% to 5%. The highly contagious Omicron variant continues to pose a threat.
&ldquo;We will progressively phase out emergency support measures as businesses revive, though a few sectors will take longer,&rdquo; Prime Minister Lee Hsien Loong said in his New Year&#39;s message.
About 87% of the population in Singapore has been fully vaccinated, while 39% have received their booster shot, it was <a href="https://www.straitstimes.com/singapore/health/singapores-vaccination-drive-1-year-on-87-fully-vaccinated-and-38-have-received-booster">reported</a> by The Straits Times newspaper last week.

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Singapore Economy Registers 7.2% Growth In 2021, Highest In Over A Decade

ByteDance is exploring a partnership with Singapore&#39;s influential Lee business family for its digital banking license in the country, the Financial Times <a href="https://www.ft.com/content/131db4e0-277a-408b-90ea-55c5fc034977">reported</a> Monday.
The Chinese internet technology company, best known as the owner of video social media app TikTok, is among the several major companies that are competing for five online financial services licenses to be awarded by the end of this year in Singapore.
Others in <a href="https://www.benzinga.com/fintech/20/01/15059644/alibabas-ant-financial-gaming-company-razer-apply-for-singapore-digital-banking-license">the fray</a> include Alibaba Group Holding Ltd. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>) subsidiary Ant Financial, a <a href="https://www.benzinga.com/fintech/19/12/15049956/singtel-grab-to-apply-for-joint-online-only-bank-license-in-singapore">joint venture</a> between Singapore Telecommunications Ltd. (OTC: <a class="ticker" href="https://www.benzinga.com/stock/sgapy#OTC">SGAPY</a>) and southeast Asian ride-hailing giant Grab Holdings Inc., Chinese consumer electronics manufacturer Xiaomi Corp. (OTC: <a class="ticker" href="https://www.benzinga.com/stock/xiacf#OTC">XIACF</a>), and gaming company Razer Inc. (OTC: RAZFF).
The Lee family of OCBC bank&#39;s Lee Kong Chian is known among the most influential business families in the city-state, as noted by the Financial Times. It&#39;s known to have significant political ties in the country, although the family isn&#39;t directly related to the ruling Lee political family.

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