SG Morning Highlights | Hospitality S-Reits Still Have Room to Grow as Chinese Travellers Return
Good morning mooers! Here are things you need to know about today's Singapore:
● Singapore shares opened lower on Monday; STI down 0.12%
● Hospitality S-Reits still have room to grow as Chinese travellers return
● Stocks to watch: Keppel Corp, UOB, Sembmarine
● Latest share buy back transactions
-moomoo News SG
Market Trend
Singapore shares opened lower on Monday. The $FTSE Singapore Straits Time Index (.STI.SG)$ was down 0.12 per cent to 3,317.98 as at 9.05 am.
Advancers / Decliners is 73 to 52, with 53.68 million securities worth S$39.23 million changing hands.
Breaking News
THE proportion of loss-making residential property transactions in the secondary market fell to its lowest level in five years in the first quarter of 2023, despite rising interest rates and mounting economic headwinds.
According to data consolidated for The Business Times by real estate consultancy Cushman & Wakefield, just 4.2 per cent of all resale transactions in Q1 2023 made losses – marginally lower than the previous quarter's 4.5 per cent and nearly a quarter of Q1 2019's 18.2 per cent. Cushman & Wakefield based its analysis on matched caveats lodged for landed and non-landed private homes.
HOSPITALITY real estate investment trusts (Reits) rebounded strongly in 2022, with their distributions per unit (DPU) improving more than their peers as global travel restrictions eased.
While most of these counters are still trading below their pre-pandemic levels, analysts who spoke to The Business Times believe the return of Chinese travellers may help provide the boost needed for further growth.
For the full year ended December 2022, Singapore-listed real estate investment trusts (S-Reits) in the hospitality sector saw the strongest DPU improvement among the S-Reit cohort, with the median DPU rising 31.6 per cent.
INSURERS in Asia are diversifying their portfolios into other asset classes and redesigning their insurance products amid rising interest rates, market watchers said.
Shorter-term, higher-quality fixed income can now provide higher returns due to the rising interest rates environment. Nevertheless, insurers typically hold longer-term assets to match their longer-term liabilities.
In a March report, asset manager DWS noted that the low interest rate environment saw insurance companies increasing their investment risk to get a decent yield.
Stocks to Watch
$Keppel (BN4.SG)$: Its Australian associates have filed civil claim proceedings for up to A$66.5 million (S$59.4 million) against three of Keppel's subsidiaries regarding the group's solar farm in Queensland, Australia. Keppel on Monday said its subsidiaries intend to "vigorously defend" the claim, and it does not expect the proceedings to have a material impact on the group's operations and overall financial performance. Shares of Keppel closed on Friday S$0.19 or 3 per cent higher at S$6.46.
$UOB (U11.SG)$: The bank on Friday said its liquidity position is "very flush", putting it in a comfortable position amid recent turmoil in the global banking industry. While UOB did not disclose the amount of its liquidity buffer, the bank assured that it had a lot of excess liquidity and that its capital ratios were well above regulatory minimums. Shares of UOB closed 0.1 per cent or S$0.03 lower at S$29.69 before the announcement.
$Seatrium (S51.SG)$: The company's wholly-owned subsidiary, Keppel FELS, received an arbitral award in its arbitration against an Awilco Drilling unit, said Sembmarine on Monday. Keppel FELS had issued a notice of termination in 2022 after Awilco defaulted on an instalment payment for the construction of a rig. Shares of Sembmarine closed flat at S$0.123 on Friday.
$IREIT Global EUR (8U7U.SG)$: The Europe-focused real estate investment trust (Reit) on Monday announced that it has secured a 15-year lease with a German federal government body for about 25 per cent of Darmstadt Campus. The anchor lease will bring the Reit's portfolio occupancy from 88.3 per cent to 90.3 per cent as at Dec 31, 2022, on a pro forma basis. Units of the Reit closed flat at S$0.50 on Friday.
Latest Share Buy Back Transactions
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