SG Morning Highlights: Temasek eyes openings in emerging technologies such as blockchain, AI amid market volatility

Advancers / Decliners is 74 to 73, with 126.46 million securities worth S$101.75 million changing hands.

Malaysia's trade surplus grew by 20.9 per cent year-on-year in September to reach a record RM31.7 billion (S$9.57 billion), according to fresh data released by the Department of Statistics Malaysia (Oct 19).

The country's total trade expanded by 31.4 per cent to RM256.9 billion, compared to RM195.5 billion in September last year.

For the third quarter this year, Malaysia's trade surplus increased 5.6 per cent to RM64.3 billion in the third quarter 2022, according to a statement by the Ministry of International Trade and Industry.

Cryptocurrency and blockchain-related assets are gaining traction among investors, both retail and institutional. Although state investor Temasek is expressing interest in these areas, it is opting to focus on the "highest-quality projects", managing director of blockchain investments Pradyumna Agrawal said.

In an interview with The Business Times, he said that although there is now "a lot of noise" in the cryptocurrency space, Temasek still has a "degree of conviction" about the technologies and opportunities in the nascent sector.

"We are very careful about doing our diligence on both reputation and solutions. (Temasek) will typically invest in impact companies which are committed to regulatory compliance," he said, adding that the company will ensure it is "comfortable" with the various risks associated with its investments.

Malaysia has said a decision by Opec+ member states to cut oil production was unanimous and made after taking into account the need to address market uncertainties.

Malaysia joins other Opec+ countries this week in backing a steep cut to the group's output target after the White House accused Saudi Arabia of coercing some other nations into supporting the move.

"Opec+ countries collectively took into consideration factors that include market fundamentals, particularly to address uncertainties in the global oil supply and demand situation," Malaysia's Economy Minister Mustapa Mohamed said in a statement issued on Tuesday (Oct 18).

Amid one of the worst sell-offs in the 20-year history of Singapore-listed real estate investment trusts (S-Reits), market watchers are paying special attention as S-Reits start to release their results and quarterly business updates for the period ended Sep 30.

Gabriel Yap, chairman of investment firm GCP Global, noted that the FTSE ST Real Estate Investment Trusts (Reits) Index has tumbled over 20 per cent since April.

Global steel demand will erode this year by 2.3 per cent due to surging inflation and climbing interest rates, the World Steel Association (WSA) said on Wednesday (Oct 19), downgrading their forecast.

The industry group revised its April forecast, which saw steel consumption edging up by 0.4 per cent in 2022, after deteriorating economic conditions, including a slowdown in top consumer China, a statement said.

A global recovery in steel demand next year is still expected, mainly due to a rise in infrastructure spending, but the growth will be 1 per cent instead of 2.2 per cent as forecast earlier this year, the WSA said.

Oil prices rose on Wednesday as caution over tightening supply countered the negative impact of uncertain demand, and news that the United States will release more crude from its reserves.

Brent crude futures for December settlement ended up US$2.38, or 2.6 per cent, to US$92.41 a barrel.

US West Texas Intermediate crude (WTI) for November, which is expiring on Thursday, ended at US$85.55 a barrel, up US$2.73, or 3.3 per cent.

Bonds with environmental, social and governance (ESG) objectives will continue to be a key growth driver for the Asia market, and it will account for between 35 per cent and 40 per cent of overall bond issuances in Asia in 2023, driven by investment-grade issuers, as well as sovereigns, said investment bank JPMorgan.

Central banks developing climate stress testing, scrutiny on how rating agencies come up with their metrics, more disclosure requirements and guidelines, as well as sector guidance released by the Science Based Target Initiatives are some factors facilitating this growth.

This projected percentage increase is higher than current levels, where ESG-labelled bonds make up 28.2 per cent of total bond supply in Asia, excluding Japan, from the beginning of this year to Oct 17.

The Reit has signed 83,588 square feet (sq ft) of new leases and renewed 71,266 sq fft of leases. The renewals come with a positive 10.2 per cent rental reversion, Sabana Reit's 10th positive quarterly reversion since the first quarter of 2020. But the rental reversion is lower than 17.4 per cent for the second quarter of 2022

The weighted average lease expiry for Q3 2022 stands at 2.7 years, a dip from 2.8 years for Q2 2022.

The company said that it evaluates board composition at the appointment of a new director and on an ongoing basis to achieve board diversity. In particular, Raffles Education said that it is in compliance with provision 2.4 of the Code of Corporate Governance regarding the appropriate size and skills for a company's board of directors.

Currently, the company's board consists of four independent and non-executive directors and one non-independent and non-executive director and one executive director.

SGX RegCo had queried the company on the differences between the excess book value and expected net gain of disposing Stamford Plaza Auckland and SPAK.

Its response was that the S$74.4 million was the excess of the property sale price over the book value of S$48.5 million, while the expected net gain of S$50 million was after deducting expenses related to the disposal, such as professional fees, agent commissions and taxes. As for the SPAK business disposal, the S$14.5 million was the excess of the book value of S$18,000, and the S$10 million was the expected net gain after deducting professional fees, agent commissions and taxes.