SG Morning Highlights | RHB Raises SGX Target Price but Says Valuation, Dividends "Still Unexciting"
Good morning mooers! Here are things you need to know about today's Singapore markets:
●Singapore shares opened lower on Tuesday; STI down 0.06%
●RHB raises target price for Singapore Exchange
●Singapore deal activity falls 13.2% YoY in the first 2 months of 2024
●Stocks to watch: SingPost
●Latest share buy back transactions
-moomoo News SG
Market Snapshot
Singapore shares opened lower on Tuesday. The $FTSE Singapore Straits Time Index(.STI.SG$ dropped 0.06 percent to 3,169.89 as at 9.04 am.
Advancers / Decliners is 65 to 35, with 140.39 million securities worth S$56.09 million changing hands.
Breaking News
RHB raises target price for Singapore Exchange
RHB has raised its target price for the Singapore Exchange (SGX) and increased its earnings forecast for the financial year 2024 by 2%. This comes as SGX's derivatives volume continues to meet expectations, with year-to-date derivatives volume and derivatives daily average volume rising 5% and 4% year-on-year, respectively. Despite higher-than-expected results, RHB notes that SGX's "valuation and dividends are still unexciting" and sees limited upside. However, Singapore remains the second most actively traded equities market in Southeast Asia, with $1.25bn in securities daily average value in February, up 13% year-on-year and 34% higher from the previous month.
Singapore deal activity falls 13.2% YoY in the first 2 months of 2024
Singapore's total deals in the first two months of 2021, including mergers and acquisitions, private equity, and venture financing deals, fell 13.2% YoY, according to data from GlobalData. The whole of Asia-Pacific also saw a decline in deal activity by 19.6% YoY to 1,843 deals, with China, India, Japan, Australia, South Korea, Malaysia, Hong Kong, Indonesia, and Thailand all experiencing declines in deal volume. Aurojyoti Bose, lead analyst at GlobalData, noted that the decline in deal activity underscores the need for resilience and adaptability within the market, presenting opportunities for strategic recalibration and innovation to drive sustainable growth in the future.
Stocks to Watch
$SingPost(S08.SG$: Singapore Post (SingPost) has completed its strategic review and approved five growth drivers to be executed over the next three years, including the adoption of a new payout scheme. The group will reorganise into three business units: Singapore, Australia and International, with each unit having the agility and empowerment to operate in their own markets, according to their individual strategies. The group has also identified a list of its non-core assets and businesses which may be monetised for capital recycling. Additionally, SingPost will endeavour to pay out 30 to 50% of its underlying net profit from FY2024 to FY2025.
$SATS(S58.SG$: SATS, the inflight catering and ground handling company, has sold its ground handling unit, Maytag Aircraft, for an enterprise value of $46m to private direct investment firm Albion River. Maytag provides aircraft refuelling, fuel storage, base operations support, ground handling and weather observation and forecasting services as a contractor for the US Department of Defense, at its US and international military bases. Albion River is a "private direct investment firm focused on acquiring companies that produce highly technical defence products and services". The funds from the sale will be used "to deleverage and/or expand the group's existing core business".
Share Buy Back Transactions
Source: Business Times, SGinvestors.io
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