SG Morning Highlights: Singapore banks see Q2 earnings bump amid rate hikes; CEOs express cautious optimism for rest of 2022

Advancers / Decliners is 106 to 86, with 240.27 million securities worth S$171.48 million changing hands.

Global oil prices dropped on Thursday to their lowest levels since before Russia's February invasion of Ukraine, as traders fretted over the possibility of an economic recession later this year that could torpedo energy demand.

Benchmark Brent crude futures settled down US$2.66, or 2.75 per cent, at US$94.12, the lowest close since Feb 18.

West Texas Intermediate (WTI) crude futures settled down US$2.34, or 2.12 per cent, at US$88.54, the lowest close since Feb 2.

Aluminium, ferroalloy and tin players are expected to post strong earnings in Q2 this year, thanks to the improved production year on year and a spillover of record-high prices in the first quarter.

In its report on Thursday (Aug 4), UOB Kay Hian (UOBKH) maintained its "overweight" call on the sector on the view that prices for selected commodities have bottomed as current spot prices could be below some of the global producers' cash production costs.

Furthermore, while sentiment remains fragile in the near term, the brokerage believes China's gradual lifting of its lockdown will stimulate demand and support prices accordingly. Hence, this presents a good buying opportunity for investors, it said.

Net profit for the 6 month period rose to US$1.2 billion from US$750.9 million in the year-ago period, the company said in a bourse filing. On a per share basis, earnings increased to US$0.185 in H1 2022 from US$0.119 previously.

The board has proposed an interim dividend of S$0.06 per share for H1 2022, up from S$0.05 per share in the year-ago period. The company noted that this is the highest interim dividend since listing, and the proposed dividend will be payable on Aug 24.

Before exceptional items, which include gains on disposal of investments and asset held for sale as well as write-back of assets, net profit for H1 2021 would be S$252 million, representing a 94 per cent gain year on year.

Earnings per share also increased to S$0.2748 from the earlier S$0.0258, while H1 turnover rose 45 per cent to S$4.76 billion from S$3.29 billion previously.

A-Reit's manager said on Thursday (Aug 4) that the proposed deal is "well-aligned" with the Reit's strategic intention, and will strengthen both its portfolio and customer base. The manager is also targeting to attain a Building and Construction Authority (BCA) Green Mark GoldPlus certification for the property after the completion of the proposed acquisition.

As at Jun 30, 2022, the property, located in Toa Payoh in Singapore, was leased to 4 tenants; it has an occupancy rate of 95.7 per cent and a long-weighted average lease expiry (WALE) of 4.5 years.

Amid this "healthy leasing momentum", FLCT maintained 100 per cent for its logistics and industrial (L&I) portfolio, with no expiries in Q4, it added. The commercial portfolio recorded a 91.3 per cent occupancy rate, with 0.9 per cent of income expiring in Q4. Overall occupancy came in at 96.5 per cent.

Aggregate leverage stood at 29.2 per cent as at end-June, down 3.9 percentage points from end-March, with cost of borrowings at 1.6 per cent. It has an average weighted debt maturity of 3 years, with refinancing of S$10 million in Q4.

This was despite higher revenue for the half year, which rose 8.7 per cent to S$1.1 billion from S$973.7 million a year ago, the group said in a regulatory filing.

The gain in revenue was mainly due to higher contributions from mobile, broadband, entertainment and enterprise business, offset by lower sales of equipment, it added.