Business
Temasek’s billions at stake: Investment in US tech giants sees mixed fortunes amid market volatility
In Q2 2024, Temasek Holdings invested billions in US tech giants like Microsoft, Apple, and Nvidia, increasing its holdings by US$3.3 billion. Despite a subsequent dip in tech stocks, some have started to recover.
![](https://theonlinecitizen.s3.ap-northeast-2.amazonaws.com/uploads/2021/07/26212343/Temasek.jpg)
Singapore’s state-owned investment firm, Temasek Holdings, significantly increased its exposure to US technology giants during the second quarter of 2024, investing billions of US dollars just before the sector experienced a notable downturn in July.
According to a Bloomberg report, Temasek’s holdings in 11 major tech companies surged by US$3.3 billion during the three months ending on 30 June, with the bulk of this increase—approximately US$3.2 billion—concentrated in six firms: Microsoft (MSFT), Apple (AAPL), Nvidia (NVDA), Alphabet (GOOGL), Meta Platforms (META), and Amazon.com (AMZN).
Temasek’s strategic decision to ramp up its investments in these tech behemoths was met with mixed results. By the end of July, concerns over the sustainability of artificial intelligence-driven gains and fears of a looming recession led to a significant drop in the share prices of several of these companies. Alphabet and Amazon, in particular, saw their stock values plummet by approximately 12 percent since the end of June, while Microsoft’s shares dipped by around 7 percent over the same period.
However, this aggressive buying spree was accompanied by a significant sell-off in other areas of Temasek’s portfolio. The firm completely exited its positions in a diverse array of companies spanning various industries, including technology, construction, healthcare, and industrial sectors.
In the technology sector, Temasek sold off its entire holdings in GitLab Inc. (GTLB), a leading software development platform, Snowflake Inc. (SNOW), a prominent data cloud company, and Datadog, Inc. (DDOG), a cloud monitoring service provider.
From the construction and materials industry, Temasek divested its shares in Martin Marietta Materials, Inc. (MLM), a major supplier of aggregates and heavy building materials, as well as Procore Technologies, Inc. (PCOR), which provides construction management software.
In the industrial sector, the firm sold off Cummins Inc. (CMI), a global leader in power solutions, and United Rentals, Inc. (URI), the world’s largest equipment rental company.
Additionally, Temasek liquidated its investments in several ETFs, including the Pacer US Small Cap Cash Cows 100 ETF (CALF), which focuses on small-cap stocks with strong free cash flows, the iShares Russell 2000 ETF (IWM), covering small-cap US companies, and the iShares MSCI Brazil ETF (EWZ), which provides exposure to Brazilian stocks.
This large-scale sell-off included the liquidation of 55,005 shares of GitLab, 61,648 shares of Snowflake, and over 3 million shares of Cue Health Inc. (HLTH), a healthcare technology company. The capital freed up from these divestments may have been reallocated to Temasek’s substantial investments in US tech giants, reflecting a strategic shift in its investment approach.
Despite the recent downturn, some of the tech shares held by Temasek have shown signs of recovery in the past week. However, it remains unclear how the firm has navigated the market since 30 June. Analysts speculate that Temasek could have realized gains by selling before the market decline, held steady through the dip, or even increased its holdings in a bid to capitalize on lower prices.
With a net portfolio value of S$389 billion as of 31 March 2024, Temasek’s investments in these tech giants represented about 1 percent of its total holdings. This multi-billion-dollar buying spree underscores Temasek’s ongoing commitment to expanding its investments in the US, which it recently highlighted as the primary destination for its capital. The firm has announced plans to invest US$30 billion in the US over the next five years.
Temasek’s aggressive push into the US tech sector could be seen as an attempt to replicate the success of Norway’s Government Pension Fund Global, the world’s largest sovereign wealth fund, which recorded a historic profit of 2.22 trillion kroner (approximately US$213 billion) in 2023. The Norwegian fund’s impressive 16.1 percent return on investment was largely driven by strong performances in the technology sector, despite a substantial loss in the previous year.
In its recent 13F filings, Temasek revealed significant increases in its holdings in companies such as Nvidia and Microsoft.
Nvidia, for example, saw its shares held by Temasek rise from 515,820 to 9,695,187, with the value of its investment growing from US$466 million to nearly US$1.2 billion. Similarly, Microsoft’s shares increased from 686,081 to over 2.1 million, with the value of the holdings jumping from US$289 million to US$945 million.
As Temasek continues to navigate the volatile landscape of the tech industry, its strategic investments will likely be closely watched by market analysts and investors alike, particularly in light of its ambitious plans to expand its footprint in the US market.
This was first published on Gutzy Asia
![](https://theonlinecitizen.s3.ap-northeast-2.amazonaws.com/uploads/2023/03/26202010/TOC_newlogo_small.webp)
Business
ST Telemedia Global Data Centres reinforces commitment to Digital India with US$3.2 billion investment
ST Telemedia Global Data Centres (STT GDC) is investing US$3.2B to expand its data centre capacity in India by 550MW, tripling its IT load. The move supports India’s growing digital economy and aligns with PM Modi’s Digital India vision, discussed during his recent visit to Singapore.
![](https://theonlinecitizen.s3.ap-northeast-2.amazonaws.com/uploads/2024/09/06204308/ST-data.png)
ST Telemedia Global Data Centres (STT GDC), a leading data centre colocation services provider headquartered in Singapore, has announced a major investment of US$3.2 billion (INR 26,000 crores) to significantly expand its data centre capacity in India.
This investment will add 550MW of data centre capacity over the next 5-6 years, nearly tripling the Temasek-backed company’s IT load capacity to meet the increasing demands of India’s rapidly growing digital economy.
The expansion is set to support the surge in data consumption, cloud computing, digital transformation, and the adoption of artificial intelligence (AI) applications across India. STT GDC, which already holds a 28% market share in India by revenue, views this move as a reflection of its confidence in the country’s digital infrastructure needs and the broader vision of Digital India.
“India’s digital economy is growing at almost three times the overall GDP growth rate and is expected to reach US$1 trillion by 2027-2028,” said Bruno Lopez, President and Group CEO of STT GDC.
“As we celebrate our 10th anniversary, this ambitious expansion underscores our commitment to Digital India, and we are confident in our ability to contribute to its long-term success.”
STT GDC India, majority-owned by STT GDC in partnership with Tata Communications Ltd, currently operates 28 data centres across 10 cities with a total capacity of over 318MW.
It serves approximately 1,000 enterprise clients, including many Fortune 500 companies. STT GDC India has also been recognized as a Great Place to Work for five consecutive years and is ranked among the Best Places to Work in Asia.
The announcement follows STT GDC’s participation in a Business Roundtable with Indian Prime Minister Narendra Modi on 5 September 2024, hosted by the Singapore Business Federation.
This strategic engagement further emphasizes STT GDC’s commitment to supporting India’s digital transformation through long-term investment and collaboration.
Prime Minister Modi’s visit to Singapore resulted in various agreements across key sectors, including a healthcare cooperation agreement between India and Singapore to collaborate on healthcare delivery, medical research, and digital health solutions.
Business
Giant to shut Toa Payoh supermarket in September, ninth closure in 2024
Supermarket chain Giant will shut its ninth store in Singapore by September 2024, citing tough competition from online retailers and grocery rivals. The Toa Payoh outlet is part of a series of closures this year, reflecting broader regional challenges for its parent company, Dairy Farm International (DFI).
![](https://theonlinecitizen.s3.ap-northeast-2.amazonaws.com/uploads/2024/09/06100409/giant1.jpg)
SINGAPORE: Supermarket chain Giant will close its ninth store in Singapore by September 2024 as it faces intense competition from online retailers and other grocery chains.
The store, located in Toa Payoh Lorong 4, is the latest in a series of closures that have taken place this year, as reported by The Straits Times.
Since February, Giant has shut down a hypermarket in Sembawang Shopping Centre, supermarkets in Bishan, Ang Mo Kio, and Bukit Panjang, along with four smaller “Express” stores in Nanyang Technological University, Pasir Ris, Redhill, and Punggol.
Following the closure of the Toa Payoh outlet, Giant will operate 45 stores across Singapore, down from 53 earlier this year.
Despite these reductions, the grocer has also opened a new outlet in Tengah in 2024.
From 2020 to 2023, the number of Giant stores in Singapore remained relatively stable, hovering between 53 and 55.
However, the recent closures highlight broader challenges faced by its parent company, Hong Kong-based Dairy Farm International (DFI), which has seen a contraction in its regional presence.
DFI, which first entered the Malaysian grocery market in 1999, exited the country in March 2023 by selling its stake in GCH Retail, the operator of the Giant, Mercato, and Giant Mini chains.
Similarly, in 2021, PT Hero Supermarket, a retail group majority-owned by DFI, closed all of its Giant supermarkets in Indonesia after the group’s revenue fell by 34% year-on-year.
In April, the Business Times reported that DFI had put the 9,731 sq ft Housing Board retail unit in Toa Payoh, currently occupied by Giant, up for sale at a guide price of S$16.5 million.
The company stated that the sale was part of a strategy to reallocate resources and focus on improving customer experience in other stores.
DFI’s half-year earnings report published on 1 August 2024 revealed that its food operations in Singapore experienced declining sales due to challenging consumer sentiment.
Despite this, the group posted underlying profit growth, reaching US$76 million.
The company attributed this profitability boost to an improved product margin mix and effective cost control measures.
In response to the Singapore’s Toa Payoh outlet closures, a DFI spokesperson told ST that the company continuously evaluates its store network and adapts to market trends and consumer needs.
“Giant and Cold Storage remain core businesses of DFI Retail Group, and our commitment to growth and expansion in Singapore remains unchanged,” the spokesperson added.
According to DFI’s official website, the group operates in 13 countries and territories, with around 11,000 outlets and a workforce of approximately 200,000 employees.
In Singapore, DFI operates not only Giant supermarkets but also 7-Eleven convenience stores and the Guardian health and beauty chain.
The group’s parent company, DFI Retail Group Holdings Limited, is incorporated in Bermuda and is primarily listed on the London Stock Exchange under the equity shares (transition) category, with secondary listings in Bermuda and Singapore.
DFI’s businesses are managed from Hong Kong by DFI Retail Group Management Services Limited, through its regional offices. The group is a member of the Jardine Matheson Group.
-
Singapore5 days ago
Singapore woman’s suicide amidst legal battle raises concerns over legal system
-
Diplomacy1 week ago
India PM Narendra Modi meets with PM Lawrence Wong; Four MoUs signed
-
Singapore14 hours ago
Minister K Shanmugam transfers Astrid Hill GCB to UBS Trustees for S$88 Million following Ridout Road controversy
-
Parliament2 days ago
Minister Shanmugam rejects request for detailed information on visa-free visitor offences: Cites bilateral considerations
-
Opinion1 week ago
Singaporean voters and the ‘Battered Wife Syndrome’
-
Parliament3 days ago
PAP MPs attack WP Gerald Giam in Parliament over NTUC independence from ruling party
-
Politics7 days ago
PAP adopts SDP policies after criticizing them: Dr Chee urges Singaporeans to see through tactics
-
Food1 week ago
NTU stall food prices questioned after parent pays S$6.30 for meal