SG Morning Highlights | UOB Cuts Interest Rates on Flagship Savings Account; OCBC, DBS Say No Change to Theirs For Now
Good morning mooers! Here are things you need to know about today's Singapore markets:
●Singapore shares opened lower on Tuesday; STI down 0.02%
●HDB Resale Prices Rise Due to Private Downgraders and First-Time Buyers
●65% of Singaporeans Spend Over $500 on First Crypto Purchase
●AI Adoption Expected to Impact Cybersecurity Personnel in Singapore
●Singapore Home Price Growth Slows in Q1 Amid Cautious Buying Sentiment
●Stocks to watch: UOB, Isetan Singapore, Best World
●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 0.02 percent to 3,234.38 as at 9.03 am.
Advancers / Decliners is 62 to 58, with 93.41 million securities worth S$43.30 million changing hands.
Breaking News
HDB Resale Prices Rise Due to Private Downgraders and First-Time Buyers
Real estate experts predict further increases in HDB resale flat prices as demand from first-time homebuyers and private homeowners downsizing from private properties grows. Based on flash estimates, HDB resale prices rose faster in Q1 2024, increasing by 1.7% QoQ and 5.7% YoY. The surge in demand for resale flats is attributed to more first-time buyers choosing to purchase from the secondary market and an increasing number of private property owners completing the mandatory 15-month wait-out period for those looking to downgrade to a resale flat. OrangeTee expects prices to increase by 5% in 2024, while Huttons predicts a 3%-5% uptick.
65% of Singaporeans Spend Over $500 on First Crypto Purchase
More than half of Singaporeans (65%) spend more than $500 on their first crypto purchase, according to data from the Independent Reserve. About a quarter (22%) of Singaporeans spend $101-$500 for their initial crypto investments, while 21% spend $1,001 - $5000. The Independent Reserve also found that 41% of current crypto investors still invest about $500+ towards their portfolio every month. However, only a few (18%) invest more than $1,000 monthly, declining by five percentage points from 2022.
AI Adoption Expected to Impact Cybersecurity Personnel in Singapore
Singapore's cybersecurity leaders expect the rise of AI to significantly affect the number of personnel in the industry in the next five years, with companies exploring plans to train staff in AI within the next two years, according to a report by Hays. The report showed that 79% of cybersecurity leaders in Singapore believe that AI will impact headcount in the next five years, higher than the 56% global average. Within the next two years, 55% of companies expressed their intentions to train staff on AI tools. However, Singaporeans rated their ability to attract cybersecurity talent positively at only 28%, lower than the 39% globally.
Singapore Home Price Growth Slows in Q1 Amid Cautious Buying Sentiment
Private home price growth in Singapore has slowed to a 1.5% quarterly increase in Q1 from 2.8% previously, according to flash figures from the Urban Redevelopment Authority. Tricia Song, research head for Singapore and Southeast Asia at CBRE, said that the slowdown is a sign of persisting cautious buying sentiment and expects price growth to ease further this quarter before picking up in the second half as homebuyers observe greater caution with their purchases. URA's preliminary figures showed trades of new private homes dropped 20% in Q1 from the preceding three months. Despite the slowdown, property analysts perceive the overall home price increase for the third consecutive quarter while transaction volume disappoints as a sign of price resiliency.
Stocks to Watch
$UOB(U11.SG$: UOB has announced a cut in the interest rates on its flagship savings account, the UOB One Account, citing expectations of falling rates over the longer term. From May 1, UOB One customers with account balances of up to $100,000 will earn an annualised interest rate of between 3% and 4.5% if they fulfil two criteria – credit a monthly salary of at least $1,600, and spend in the same month a minimum of $500 on eligible debit and credit cards, such as the UOB One card and UOB One Visa debit card. OCBC Bank and DBS Bank have indicated that there are no changes to their flagship savings accounts for now.
$Isetan(I15.SG$: Isetan Mitsukoshi, the holding company for Mitsukoshi and Isetan department stores, is looking to fully acquire mainboard-listed Isetan Singapore by taking it private. The proposed privatisation will be achieved through a scheme of arrangement with a consideration of $7.20 for each target share, implying a 37.4% premium over the counter's highest closing market price of $5.24 in the past five years. Isetan Mitsukoshi currently owns a 52.73% interest in the company and the scheme will require in-principle approval from the Singapore Exchange, a sanction of the scheme by the Singapore High Court, and majority approval from shareholders.
$Best World(CGN.SG$: A group of shareholders who had previously requested for an EGM to be held by Best World International have withdrawn their requisition letter. The group, who collectively own more than 10% of the company, had taken issue with the remuneration of the directors and wanted to oust the three independent directors, among other requests. Best World will not take further action for now regarding the requisition, but the group has reserved their rights to issue another requisition letter down the road. Best World had previously announced plans to launch a selective capital reduction exercise so that the existing controlling shareholders can privatise the company.
Share Buy Back Transactions
Source: Business Times, SGinvestors.io
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103841817 : Going forward. We will be looking at interest rates cut for the next 2 years.