SG Morning Highlights | Singapore Banks Face Limited NIM Growth, Rising Asset Quality Risks in Q1
Good morning mooers! Here are things you need to know about today's Singapore:
● Singapore shares opened lower on Wednesday; STI down 0.29%
● Singapore banks face limited NIM growth, rising asset quality risks in Q1
● Stocks to watch: Suntec Reit, FCT, CapitaLand Ascott Trust
● Latest share buy back transactions
-moomoo News SG
Market Trend
Singapore shares opened lower on Wednesday. The $FTSE Singapore Straits Time Index (.STI.SG)$ was down 0.29 per cent to 3,286.99 as at 9.11 am.
Advancers / Decliners is 61 to 92, with 78.39 million securities worth S$80.51 million changing hands.
Breaking News
Market observers expect the trio of Singapore banks to post first-quarter results that have been weighed down by limited room for net interest margin (NIM) growth even as asset quality risks continue to rise.
The US Federal Reserve is likely near the peak of its rate hike cycle, giving limited upside for NIM growth ahead. Meanwhile, the banks can expect weaker loan growth and increasing risks to their asset quality as recession risks become more imminent, analysts noted.
The Ministry of Home Affairs (MHA) has clarified that a statement on the number of high-net-worth individuals (HNWIs) expected to be granted Singapore Citizenship (SC) in 2023, which was reported in the news recently, was "highly misleading (and) with no credible basis".
Stocks to Watch
$FRASERS CENTREPOINT TRUST (J69U.SG)$: Frasers Centrepoint Trust distribution per unit (DPU) inched down 0.1 per cent to S$0.0613 for the first half ended Mar 31, from S$0.06136 the year before.
The retail real estate investment trust's (Reit) gross revenue and net property income improved. However, property expenses were higher year on year, financial results released on Wednesday (Apr 26) showed.
Gross revenue was up 6.5 per cent to S$187.6 million from S$176.2 million in the year-ago period. This was mainly due to higher staggered rent and higher rentals from renewed leases, along with higher atrium income as events resumed on Mar 29, 2022.
$Suntec Reit (T82U.SG)$: The Reit on Wednesday posted a distribution per unit (DPU) of S$0.01737 for the first quarter of 2023, a 27.4 per cent decline from the same period a year ago, mainly due to higher financing costs. The DPU will form part of the Reit's distribution for the first half of this year, said its manager.
$CapLand Ascott Trust (HMN.SG)$: Capitaland Ascott Trust's gross profit for the first quarter ended March was up 59 per cent year on year, due to stronger operating performance and contributions from new properties.
About 59 per cent of the quarter's gross profit comprised stable income – which is derived from master leases and management contracts with minimum guaranteed income, as well as longer-stay properties.
Some 41 per cent of gross profit contributions were from management contracts of serviced residences and hotels, said its managers on Wednesday (Apr 26).
Latest Share Buy Back Transactions
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