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

CapitaLand Integrated Commercial Trust / Equity Bottom-Up

CapitaLand Integrated Commercial Trust (CICT SP)

<ul><li>S-REITs recorded net institutional inflows of S$42 million, reversing nearly seven weeks of net outflows.</li><li>CapitaLand Integrated Commercial Trust's FY24 AUM grew 6%, with NPI up 3.4% and rental reversion increases.</li><li>The US Federal Reserve maintained interest rates at 4.25-4.5%, lowered 2025 growth forecast, and raised inflation projection.</li></ul>

S-REITs recorded net institutional inflows of S$42 million, reversing nearly seven weeks of net outflows.CapitaLand Integrated Commercial Trust's FY24 AUM grew 6%, with NPI up 3.4% and rental reversion increases.The US Federal Reserve maintained interest rates at 4.25-4.5%, lowered 2025 growth forecast, and raised inflation projection.

REIT Watch - S-REITs surge as banks decline; see beginnings of a rebound

Mapletree Pan Asia Commercial Trust / Equity Bottom-Up

Mapletree Pan Asia Commercial Trust (MPACT SP)

<ul><li>Softer US inflation data that came out the past week fuelled expectations of rate cuts once more.</li><li>The US consumer price index increased 0.3 per cent from March to April but was lower than what markets were expecting.</li><li>The iEdge S-Reit Index also rallied on Thursday, gaining 2 per cent.</li></ul>

Softer US inflation data that came out the past week fuelled expectations of rate cuts once more.The US consumer price index increased 0.3 per cent from March to April but was lower than what markets were expecting.The iEdge S-Reit Index also rallied on Thursday, gaining 2 per cent.

REIT Watch - Retail flows remain cautiously optimistic for S-Reits

Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

<ul><li>Technically, the SET Index is expected to rise, with the resistance at 1,395/1,402 points (10-day EMA) and the support at 1,380/1,373 points.</li><li>The Ministry of Commerce will report inflation in November, with the consensus forecasting -0.3% MoM and -0.5% YoY, weakening further from October at -0.28% MoM and -0.31% YoY.</li><li>We recommend blue chip stocks benefiting from the end of the interest rate uptrend: SAWAD, CPNREIT and TISCO.</li></ul>

Technically, the SET Index is expected to rise, with the resistance at 1,395/1,402 points (10-day EMA) and the support at 1,380/1,373 points.The Ministry of Commerce will report inflation in November, with the consensus forecasting -0.3% MoM and -0.5% YoY, weakening further from October at -0.28% MoM and -0.31% YoY.We recommend blue chip stocks benefiting from the end of the interest rate uptrend: SAWAD, CPNREIT and TISCO.

<ul><li>Within the Singapore stock market, Sembcorp Industries and Seatrium have booked the most net institutional fund inflows in the year to Jul 18.</li><li>Seatrium has been Singapore’s sixth most traded stock, while Sembcorp Industries has ranked among the 15 most traded stocks, up from ranking among the 30 most traded stocks in 2022.</li><li>Overall, Singapore Exchange-listed stocks have booked S$2.8 billion of net institutional fund outflow and S 4 billion of net retail inflow in the 2023 year to Jul 18.</li></ul>

Within the Singapore stock market, Sembcorp Industries and Seatrium have booked the most net institutional fund inflows in the year to Jul 18.Seatrium has been Singapore’s sixth most traded stock, while Sembcorp Industries has ranked among the 15 most traded stocks, up from ranking among the 30 most traded stocks in 2022.Overall, Singapore Exchange-listed stocks have booked S$2.8 billion of net institutional fund outflow and S 4 billion of net retail inflow in the 2023 year to Jul 18.

Taking stock of institutional and retail fund flows

External broker reports(aggregated public sources), UOB Kay Hian

UOB Kay Hian

External broker reports(aggregated public sources)

Backed by the UOB Group, UOB Kay Hian is one of Asia’s largest brokerage firms. Headquartered in Singapore, we are supported by more than 80 branches worldwide including a growing network of offices across Southeast Asia, Greater China, the United Kingdom and North America. Our global footprint and strong international presence have enabled us to feel the pulse of key financial markets and deliver incisive intelligence across industry sectors and asset classes. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>We factor in potential valuation losses and the cost to reduce gearing to correctly appraise the valuation for Prime US REIT.</li><li>We estimate fair value of investment properties to drop 10% and aggregate leverage to hit 48% at end-23.</li><li>Valuation is attractive with Prime US REIT's 2024 distribution yield at 17.4% and P/NAV at 0.44x. Maintain BUY. Target price: US$0.61.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

We factor in potential valuation losses and the cost to reduce gearing to correctly appraise the valuation for Prime US REIT.We estimate fair value of investment properties to drop 10% and aggregate leverage to hit 48% at end-23.Valuation is attractive with Prime US REIT's 2024 distribution yield at 17.4% and P/NAV at 0.44x. Maintain BUY. Target price: US$0.61.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Prime US REIT 1Q23 - Resiliency From Diversified Tenant Mix; Bombed-Out Valuations

Singapore

Prime US REIT is a Singapore-based real estate investment trust that invests in stabilized income-producing Class A freehold office properties in key markets across the United States. It aims to provide unitholders with regular and stable distributions and long-term growth in distribution per unit and net asset value per unit. The REIT was listed on the Main Board of the Singapore Exchange on July 19, 2019, and is headquartered in Singapore.

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Prime US REIT (PRIME SP)

REIT Watch - S-REITs surge as banks decline; see beginnings of a rebound

S-REITs recorded net institutional inflows of S$42 million, reversing nearly seven weeks of net outflows. CapitaLand Integrated Commercial Trust's...

Singapore Exchange Ltd (SGX)

REIT Watch - Retail flows remain cautiously optimistic for S-Reits

Softer US inflation data that came out the past week fuelled expectations of rate cuts once more. The US consumer price index increased 0.3 per...

Singapore Exchange Ltd (SGX)

Today's Dominant Ideas

Technically, the SET Index is expected to rise, with the resistance at 1,395/1,402 points (10-day EMA) and the support at 1,380/1,373 points. The...

Krungthai XSpring

Taking stock of institutional and retail fund flows

Within the Singapore stock market, Sembcorp Industries and Seatrium have booked the most net institutional fund inflows in the year to Jul...

Singapore Exchange Ltd (SGX)

Prime US REIT 1Q23 - Resiliency From Diversified Tenant Mix; Bombed-Out Valuations

We factor in potential valuation losses and the cost to reduce gearing to correctly appraise the valuation for Prime US REIT.

UOB Kay Hian

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