SG Morning Highlights | CapitaLand Investment Divests 95% Stake of Capital Square Beijing to AIA Life Insurance
Good morning mooers! Here are things you need to know about today's Singapore markets:
●Singapore shares opened higher on Wednesday; STI up 0.08%
●Singapore's Investment Pledges Decline 44% to $12.7b in 2023, Says EDB
●Singapore Tops APAC's Cross-Border Investments in 4Q23 Despite Lower Investment Volume
●UOB Economist Forecasts Singapore's Monetary Policy to Normalize in April 2024
●Stocks to watch: CapitaLand Investment, Keppel
●Latest share buy back transactions
-moomoo News SG
Market Snapshot
Singapore shares opened higher on Wednesday. The $FTSE Singapore Straits Time Index(.STI.SG$ rose 0.08 percent to 3,152.58 as at 9.04 am.
Advancers / Decliners is 54 to 57, with 74.19 million securities worth S$77.07 million changing hands.
Breaking News
Singapore's Investment Pledges Decline 44% to $12.7b in 2023, Says EDB
According to the Economic Development Board (EDB), Singapore secured $12.7b in fixed asset investment (FAI) pledges in 2023, a 44% drop from the $22.5b it attracted the year before, as semiconductor commitments eased from the "exceptional spike" in 2022. Electronics companies followed, with a 24% share of all the pledges last year, shrinking by more than half from their 67% FAI share in 2022. Despite the decline in investment pledges, the report also showed that the total business expenditure (TBE), or incremental annual operating expenditure of businesses in Singapore, climbed by 44% to $8.9m last year from $6.2b the year before. When realized, last year's FAI and TBE commitments are expected to create 20,045 new jobs and contribute an estimated $26.7m in value-added per annum, up 30% from the projected $20.6m economic contribution in 2022. Global firms from chemicals, electronics, healthcare, and aerospace continued to invest in the country to promote supply chain resiliency, led by chemical-focused companies which accounted for 36% of last year's FAI commitments.
Singapore Tops APAC's Cross-Border Investments in 4Q23 Despite Lower Investment Volume
According to a report by JLL, Singapore was the most active cross-border investor in Asia Pacific (APAC) in 4Q23, with hotel and logistics acquisitions making up 36% of quarterly investment volume. However, Singapore's investment volume fell 29% YoY to $2.4b (US$1.8b) in the same period, representing the steepest decline experienced in APAC. Meanwhile, cross-border investments in APAC declined by 64% YoY to $4.01b (US$3b) in 4Q23. Despite this, commercial real estate investment in APAC increased 3% YoY in 4Q23 to $42.3b (US$31.6b), reversing seven consecutive quarters of decreasing volumes. This increase drew an upturn despite the 17% decline YoY to $143b (US$106.8b) for the overall investment across the region.
UOB Economist Forecasts Singapore's Monetary Policy to Normalize in April 2024
According to a report by UOB Global Economics and Markets Research, Singapore's monetary policy is expected to normalize as early as April 2024. The Monetary Authority of Singapore (MAS) is expected to slightly reduce the slope of the Singapore dollar nominal effective exchange rate and progressive disinflation to Singapore's key trading partners, particularly China.
Stocks to Watch
$CapitaLandInvest(9CI.SG$: CapitaLand Investment Limited (CLI) has formed a RMB2.4bn ($447m) joint venture with AIA Life Insurance (AIA) to recapitalise Capital Square Beijing, a Grade-A office building in Beijing. Under this partnership, CLI will divest a 95% stake in Capital Square Beijing to AIA and hold the remaining 5% stake. CLI will provide asset management services for the joint venture, which will contribute to its recurring fee income. Located in the Central Business District in Chaoyang District, Capital Square Beijing was acquired in October 2022 through a court auction. This is the second time CLI is partnering with AIA in China, following the insurer's investment in one of CLI's RMB funds in 2022.
$Keppel Reit(K71U.SG$: Keppel Infrastructure Trust (KIT) has delivered a record performance in FY2023, with distributable income increasing 42.4% YoY to $316.8m and 2HFY2023 distributable income rising by 36% to $183.87m. Distributions per unit surged 61% to 6.19 cents, including a special DPU of 2.33 cents, which came from the $131.2m in capital optimisation at Ixom, distributed to unitholders in November 2023. KIT achieved record EBITDA for City Energy, Ixom, and Philippine Coastal in FY2023. The trust also completed the acquisition of a 17 MW Swedish onshore wind farm and a 45% interest in a residential solar portfolio in Germany. In Singapore, City Energy completed the acquisition of Tan Soon Huah's LPG business, while operations at the Senoko WTE Plant, Keppel Seghers Tuas WTE Plant, Keppel Seghers Ulu Pandan NEWater Plant, and SingSpring Desalination Plant remained stable.
Share Buy Back Transactions
Source: Business Times, SG investors
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