SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

Emperador, Inc. operates in the beverage industry. The Company, through its subsidiary, produces and markets brandy.

<ul>
<li>Emperador's acquisition of Los Danzantes aligns with its "Contemporise, Premiumise, Internationalise" strategy, enhancing its premium Mezcal offerings.</li>
<li>The Dalmore Distillery expansion, doubling capacity, will impact Emperador's revenue mix 12 years post-completion.</li>
<li>Whyte &amp; Mackay's sustainability initiatives include a Jura Biomass Boiler and carbon capture, targeting carbon neutrality by 2030.</li>
</ul>


Emperador's acquisition of Los Danzantes aligns with its "Contemporise, Premiumise, Internationalise" strategy, enhancing its premium Mezcal offerings.
The Dalmore Distillery expansion, doubling capacity, will impact Emperador's revenue mix 12 years post-completion.
Whyte &amp; Mackay's sustainability initiatives include a Jura Biomass Boiler and carbon capture, targeting carbon neutrality by 2030.


10 in 10 with Emperador – Embracing Premiumisation for Global Expansion

Capitaland Integrated Commercial Trust / Equity Bottom-Up

Capitaland Integrated Commercial Trust operates as a retail estate investment trust. The Compnay invests in retail and office properties and integrated developments. Capitaland Integrated Commercial Trust serves clients in Asia Pacific.

Capitaland Integrated Commercial Trust (CICT SP)

<ul><li>S-REITs rebounded 5.2% with S$50 million net institutional inflow, led by CapitaLand Integrated Commercial Trust and Frasers Centrepoint Trust.</li><li>US Fed Fund Rates outlook turned dovish, with expectations of 75bps cuts by 2026 due to weak consumer gauges.</li><li>Larger-cap S-REITs averaged 4.8% returns, outperforming smaller-cap counterparts, supported by institutional inflows and index weightings.</li></ul>

S-REITs rebounded 5.2% with S$50 million net institutional inflow, led by CapitaLand Integrated Commercial Trust and Frasers Centrepoint Trust.US Fed Fund Rates outlook turned dovish, with expectations of 75bps cuts by 2026 due to weak consumer gauges.Larger-cap S-REITs averaged 4.8% returns, outperforming smaller-cap counterparts, supported by institutional inflows and index weightings.

S-REITs That Bucked Recent Market Downturn

Digital Realty Trust, Inc. owns, acquires, repositions, and manages technology-related real estate.  The Company's properties contain applications and operations critical to the day-to-day operations of technology industry tenants and corporate enterprise data center tenants.  Digital's property portfolio is located throughout the United States and in England.

<ul><li>Institutions were net sellers of Singapore stocks, resulting in a net outflow of S$221 million from March 7-13.</li><li>Franklin Resources acquired 969,800 units of Digital Core REIT, increasing its deemed interest to 5.06% on March 6.</li><li>Nam Cheong reported FY net profit of RM790.1 million, with revenue rising 45.1% to RM689.4 million in FY24.</li></ul>

Institutions were net sellers of Singapore stocks, resulting in a net outflow of S$221 million from March 7-13.Franklin Resources acquired 969,800 units of Digital Core REIT, increasing its deemed interest to 5.06% on March 6.Nam Cheong reported FY net profit of RM790.1 million, with revenue rising 45.1% to RM689.4 million in FY24.

Digital Core REIT Gains New Substantial Shareholder

<ul><li>CapitaLand Integrated Commercial Trust's net property income grew by 3.4% to S$1.2 billion in FY24, with DPU increasing 1.2%.</li><li>Mapletree Pan Asia Commercial Trust's Q3 FY25 revenue was S$223.7 million, down 7.4% year-on-year due to overseas headwinds.</li><li>OUE REIT's FY24 revenue rose 3.7% to S$295.5 million, with a 10.7% positive rental reversion for office assets.</li></ul>

CapitaLand Integrated Commercial Trust's net property income grew by 3.4% to S$1.2 billion in FY24, with DPU increasing 1.2%.Mapletree Pan Asia Commercial Trust's Q3 FY25 revenue was S$223.7 million, down 7.4% year-on-year due to overseas headwinds.OUE REIT's FY24 revenue rose 3.7% to S$295.5 million, with a 10.7% positive rental reversion for office assets.

REIT Watch - Diversified S-Reits offer portfolio resilience with stable 2024 operating performance

Alibaba Group Holding  / Equity Bottom-Up

Alibaba Group Holding Limited provides online sales services. The Company provides internet infrastructure, electronic commerce, online financial, and internet content services through its subsidiaries. Alibaba Group Holding offers its products and services worldwide.

<ul><li>Trading activity for daily leveraged certificates (DLCs) reached a 20-month high in February with a turnover of $447M.</li><li>Alibaba DLCs' trading turnover increased 457% month-on-month to $70M, driven by Chinese government support for AI industries.</li><li>Nvidia DLCs became the top traded US stock DLC in February, overtaking Tesla, with S$1.4M traded.</li></ul>

Trading activity for daily leveraged certificates (DLCs) reached a 20-month high in February with a turnover of $447M.Alibaba DLCs' trading turnover increased 457% month-on-month to $70M, driven by Chinese government support for AI industries.Nvidia DLCs became the top traded US stock DLC in February, overtaking Tesla, with S$1.4M traded.

DLCs Trading Activity Hit 20-Month High Amid Stock Market Rotation