SG Morning Highlights | Singapore Economy Set to Bottom, May Spark STI Re-Rating
Good morning mooers! Here are things you need to know about today's Singapore:
●Singapore shares opened lower on Wednesday; STI down 0.12%
●Singapore economy set to bottom, may spark STI re-rating
●Stocks to watch: Lian Beng, The Place Holdings, Eneco Energy
●Latest share buy back transactions
-moomoo News SG
Market Trend
Singapore shares opened down on Wednesday. The $FTSE Singapore Straits Time Index(.STI.SG$ lost 0.12 per cent to 3,200.03 as at 9.25 am.
Advancers / Decliners is 90 to 61, with 183 million securities worth S$99.03 million changing hands.
Breaking News
The government is watching Central Provident Fund (CPF) interest rate pegs to ensure they "remain relevant in the prevailing operating environment", said Minister for Manpower Tan See Leng in a written parliamentary reply on Tuesday (Jul 4).
Following a relatively strong 2022, the current year has not been a great one for the Straits Times Index (STI) so far.
The STI has underperformed most other major markets and has been flat year to date, trading within the 3,100 to 3,350 range.
Heading into the second half of the year, Singapore equities may face headwinds due to slower economic growth amid weakening global macroeconomic conditions.
Financials, the largest STI component, may face challenges despite recording strong profits in recent earnings reports. Meanwhile, Singapore-listed real estate investment trusts (S-Reits) may benefit from renewed optimism as rates pause, but a re-rating can only occur as growth improves. Therefore, it is prudent for investors to be selective when investing in S-Reits.
Despite these near-term headwinds and challenges, we believe that Singapore’s economic growth will rebound in the next six to 12 months, fuelled by a pickup in export growth and recovery of the semiconductor industry. There are also merits to investing in the STI, due to its relatively high dividend yield, stability and resilience.
Stocks to Watch
$Lian Beng(L03.SG$: Lian Beng no longer meets the free float requirement of the Singapore Exchange (SGX), now that the percentage of its shares held by the public is less than 10 per cent, the mainboard-listed company said in a bourse filing on Tuesday (Jul 4).
This means the trading of its shares will be suspended at the close of the offer on Jul 7, 5.30 pm to take the company private.
$The Place Holdings Ltd(E27.SG$: The Place Holdings on Tuesday (Jul 4) said its potential deal to sell up to 11 per cent of its stake in the former Realty Centre site to Maximus Global Ventures was terminated after passing the long stop date.
The group was expecting its share of the proceeds from the deal to be S$8.8 million, or 18.7 per cent of the company's entire market capitalisation of S$47.1 million on Wednesday.
The investment holding company announced on May 11 that its wholly-owned subsidiary, The Place Singapore Investment, along with MCC Land (Singapore) and Sun Card, had entered into a binding indicative framework agreement with Maximus Global Ventures.
$Eneco Energy - watch list(R14.SG$: Eneco Energy announced that its wholly-owned subsidiary RichLand Logistics Services has entered into a contract with Asia Pacific Brewery (APB) for the provision of domestic bulk transportation of APB's popular beverage brands, Heineken and Tiger, in Singapore.
The contract entails daily stock replenishments "fresh from the oven" to APB's distributors island-wide, including key operating hubs. The contract is for a period of three years with an option of two years extension.
Latest Share Buy Back Transactions
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