SG Morning Highlights | Keppel Reports Rise in Q1 Profit Fueled by Strong Infrastructure and Connectivity Performance
Good morning mooers! Here are things you need to know about today's Singapore markets:
●Singapore shares opened lower on Thursday; STI down 1.14%
●Commercial Real Estate Investments in Singapore and Asia Pacific Rise in Q1
●Sustainability and Agrifood Sectors Lead Singapore's Startup Ecosystem
●Stocks to watch: Keppel, Seatrium
●Latest share buy back transactions
-moomoo News SG
Market Snapshot
Singapore shares opened lower on Thursday. The $FTSE Singapore Straits Time Index(.STI.SG$ dropped 1.14 percent to 3,255.63 as at 9.03 am.
Advancers / Decliners is 35 to 87, with 71.06 million securities worth S$100.77 million changing hands.
Breaking News
Commercial Real Estate Investments in Singapore and Asia Pacific Rise in Q1
Commercial real estate investments in Asia Pacific increased by 13% year-on-year to reach US$30.5 billion in the first quarter of 2024, according to JLL's Capital Tracker report. Singapore recorded US$2.2 billion in property investments over the same period, driven by strong demand in the retail sector and a recovery in the hospitality industry. Retail, hospitality, and logistics are expected to remain key areas of focus for investors throughout the rest of the year. Meanwhile, Japan saw US$11.5 billion worth of transactions, up 29% YoY, while South Korea saw a 73% surge in commercial real estate deals worth US$4.3 billion.
Sustainability and Agrifood Sectors Lead Singapore's Startup Ecosystem
The sustainability and agrifood sectors are leading Singapore's startup ecosystem, with both verticals performing strongly in funding and incorporations. In 2023, sustainability startups saw 16 funding events, up from 12 in 2022, and were the sole vertical to record a year-on-year increase in funding events and amounts since 2021. The sector also had the most number of startups incorporated last year. Meanwhile, agrifood startups saw a year-on-year dip in incorporations, but longer-term data reveals that the sector "continues to produce a steady stream of new companies," with 80 incorporated startups between 2019 and 2023. Among these, the majority were companies involved in alternative proteins or related enabling technologies. Both verticals saw an increase in funding events, with agrifood rising from eight in 2022 to 13 in 2023.
Stocks to Watch
$Keppel(BN4.SG$: Keppel has reported revenue for continuing operations of $1.5 billion in the first quarter of fiscal year 2024, a 6.25% decline from the corresponding quarter the year before. The revenue saw higher contributions from its infrastructure and connectivity segments, which offset the lower revenue from its real estate segment. The group reported a 51% year-on-year growth in recurring income for the quarter driven by stronger contributions from asset management and operating income. Keppel also reported raising $436 million in equity and conducting about $1.1 billion in acquisitions and divestments year-to-date. The company is focused on achieving $10 billion to $12 billion in asset monetisation by the end of 2026.
$Seatrium(S51.SG$: Analysts believe it could take some time for offshore and marine giant Seatrium, which was formed after the consolidation of Sembcorp Marine and Keppel Offshore and Marine, to recover its profitability. The company has been struggling with lawsuits and loss-making projects that it took on post-pandemic, despite strong demand and tight supply buoying Singapore-listed maritime players in general. While Seatrium has been winning more contracts recently, Maybank analyst Jarick Seet pointed out that the company's earnings recovery would likely be slow.
$Suntec Reit(T82U.SG$: Suntec Real Estate Investment Trust (Suntec Reit) has reported a 13% year-on-year decline in distribution per unit (DPU) for the first quarter ended March to S$0.01511, in the absence of the Reit's capital distribution that concluded in end-2023. The distribution will be paid out to unitholders on May 30 after the record date on May 6. Distribution for the quarter stood at S$44 million, down 12.5% from the prior year. Suntec Reit's manager said that DPU for the quarter was 1.8% lower on an operational basis, excluding last year's capital distribution, while distributable income from operations would have been 1.1% lower on the year. The declines were attributed to higher financing costs and vacancies at the Reit's overseas assets.
Share Buy Back Transactions
Source: Business Times, SGinvestors.io
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