SINGAPORE - Telco consolidation made headlines last week, with StarHub fully acquiring MyRepublic Broadband and Keppel selling M1&rsquo s telecoms operations.

 

Keppel is divesting its 83.9 per cent stake in M1&rsquo s telecoms business to Simba Telecom, a unit of Australia-listed company Tuas, in a $1.43 billion deal.

 

Shares of the global asset manager and operator fell after the Aug 11 announcement, with some observers noting that it booked an accounting loss, or loss on paper, for the sale. The stock declined 1.52 per cent from last week&rsquo s close to $8.45 on Aug 15.

 

The estimated $222 million accounting loss for Keppel stems from goodwill and intangible assets tied to the telco business. Keppel first invested in M1 in 1994 and was later involved in its privatisation in 2019.

 

At a media briefing, Keppel chief executive Loh Chin Hua said that the company has been making an effort to divest non-core assets.

 

&ldquo Our narrative is that we&rsquo re going to create an asset-light &lsquo New Keppel&rsquo . This particular business is no longer core to us. Being able to monetise it is probably the most important point,&rdquo he added.

 

The other telco consolidation came on Aug 12, the day after the Keppel announcement.

 

StarHub, which already held a 50.1 per cent stake in MyRepublic Broadband, said it acquired the remaining 49.9 per cent share in a roughly $105 million deal, in a move aimed at strengthening StarHub&rsquo s strategy in the broadband market.

 

StarHub CEO Nikhil Eapen said: &ldquo We&rsquo re in a phase of consolidation, and we&rsquo re not just watching it unfold, we&rsquo re shaping it.&rdquo

 

He added: &ldquo As the market shifts, scale, quality and resilience matter more than ever. Smaller players may find it harder to sustain, especially without robust platforms.&rdquo

 

Singapore telcos post mixed results

Analysts noted that the industry consolidation could benefit Singapore&rsquo s two listed telcos &ndash StarHub and Singtel &ndash by helping to ease intense price competition in an overcrowded market.

 

For StarHub, the deal also comes amid weakening performance.

 

Singapore&rsquo s second-largest telco on Aug 14 posted a 41.7 per cent year-on-year fall in first-half earnings to $47.9 million.

 

The lower profit was partly due to a one-off forfeiture payment of $14.1 million for the return of certain spectrum rights.

 

Excluding this sum, net profit rose to $62 million, though this still works out to a 23 per cent drop year on year.

 

Mr Eapen said the telco intends &ldquo to remain aggressive across brands and segments in the domestic consumer market to position for eventual market recovery&rdquo .

 

StarHub shares closed at $1.18 on Aug 15, down 3.28 per cent from last week&rsquo s close.

 

In contrast, Singtel ended the week higher after an initial fall following Keppel&rsquo s Aug 11 announcement.

 

Its stock rose 3 per cent from Aug 8 to close at $4.10 on Aug 15.

 

The telco on Aug 13 announced that its underlying first-quarter net profit rose 13.9 per cent year on year to $686 million, driven by higher earnings from its Australian unit Optus and contributions from regional associates, including India&rsquo s Bharti Airtel.

 

Singtel CEO Yuen Kuan Moon expects the telecom operator&rsquo s data centre business to be a &ldquo bright spot&rdquo in the current financial year as its data centres in Singapore and Thailand near completion.

 

Shares of real estate-related companies mostly rose last week on robust earnings.

 

Real estate services provider PropNex jumped more than 30 per cent in the past week to $2.03, while its peer Apac Realty was up 13 per cent from Aug 8 to close at 72 cents on Aug 15, driven by higher home sales.

 

PropNex on Aug 12 posted record net profit of $42.3 million for its first half-year, a 122.4 per cent increase from the year before and surpassing analysts&rsquo estimates. Apac Realty&rsquo s net profit more than doubled to $11.3 million in the same period, the company said on Aug 8.

 

Analysts said that sales momentum could remain strong, supported by a pipeline of upcoming launches.

 

Developer City Developments Limited (CDL) was up 6.3 per cent to $6.73 and UOL rose more than 3 per cent over the week to close at $7.27. CDL&rsquo s first-half net income rose 3.9 per cent to $91.2 million, with revenue up 8 per cent to $1.69 billion, driven by the fully sold executive condominium project Copen Grand.

 

A special interim dividend of three cents per share was proposed, up from the two cents it paid out a year earlier.

 

CEO Sherman Kwek told a briefing on Aug 13 that CDL will try to pay one-third of its net income as dividends every year and reward shareholders when divestments are made.

 

Meanwhile, Pan Pacific and Parkroyal owner UOL&rsquo s first-half net profit increased 58 per cent to $205.5 million due to strong performance from property development and property investments, and other gains from the disposal of Parkroyal Yangon, the firm said on Aug 13.

 

CapitaLand Investment (CLI) shares fell 2.5 per cent from Aug 8, closing at $2.70 on Aug 15, on the back of weaker earnings.

 

First-half earnings dropped 13 per cent, attributed to loss of contributions from divested assets, lower fund performance and transaction fees, and absence of a one-off tax write-back.

 

CLI also attributed part of its performance to the downturn in China, where it has 18 retail and commercial properties.

 

Group CEO Lee Chee Koon urged investors to be patient with the firm&rsquo s investment returns, hinting at an improved performance in the second half of 2025 when SC Capital and Wingate are expected to deliver stronger returns.

Other market movers

Shares of CNMC Goldmine surged more than 18 per cent over last week to close at a record 64.5 cents.

 

The gold mining company posted strong earnings of US$15.8 million (S$20.3 million) for the first half, up 256.1 per cent year on year, driven by higher production and surging gold prices.

 

Investment manager Yangzijiang Financial was up 9.3 per cent to $1.06, as first-half net profit increased 28 per cent to $137.7 million. This was largely attributed to the reversal of credit loss allowances, increased contributions from maritime joint ventures and net foreign exchange gains.

 

What to look out for this week

On Aug 18, Singapore will release its non-oil domestic exports data for July. DBS chief economist Taimur Baig forecasts a 6 per cent year-on-year contraction, marking a reversal from June&rsquo s growth as an earlier boost from the front-loading of orders ahead of US tariff hikes tapers off.

 

Sats is scheduled to release its business update for the first quarter ended June 30 on Aug 20, after the market closes.

 

Boosted by a one-off gain, Singtel has reported earnings of $2.88 billion for its 1QFY2026, up 319.7% y-o-y.

 

If the exceptional gains of $2.2 billion from the partial trimming of its stake in Airtel and the merger of two related entities in Thailand are excluded, Singtel' s underlying net profit was up 16.7% y-o-y to $686 million.

 

Optus, the Australia unit, and NCS, the regional IT services subsidiary, realised further EBIT improvements year on year. Its Thailand and India-based associates AIS and Airtel lifted regional associate contributions too.

 

Operating revenue for the same quarter ended June was down 0.6% y-o-y to $3.39 billion, but up 2.9% in constant currency terms.

 

Singtel derives a big chunk of its revenue from Optus. The Australian dollar depreciated by 7% in the period. Fluctuations in other regional currencies affected the numbers reported in the Singdollar as well.

 

Group CEO Yuen Kuan Moon calls the 1QFY2026 numbers a " strong set" of results, despite ongoing macroeconomic uncertainties and currency fluctuations.

 

In line with Singtel' s ongoing capital recycling strategy, it has also trimmed a 1.2% stake in Airtel, taking advantage of a buoyant stock market in India.

 

" With our momentum in business performance and capital recycling, we are on track to deliver on our goals and accelerate growth in the second year of our Singtel28 plan.

 

This current FY2026, Yuen expects the company' s data centre business to be another bright spot with the completion of Nxera&rsquo s data centres in Thailand and Singapore.

 

" We remain focused on solid execution and operating discipline to drive sustainable growth," he says.