SG Morning Highlights | Retail S-Reits Among Top Performers in May

Advancers / Decliners is 173 to 58, with 251.49 million securities worth S$288.99 million changing hands.

South-east Asia's financial sector looks set to give the green light for the financing of early coal phase-out projects. But the ability of Singapore's three banks to pursue such deals lies in a grey area due to their self-imposed coal policies.

Soaring ticket prices are lining the pockets of the world's biggest airlines, providing balm to the economic wounds suffered during the travel lockdowns of Covid-19. But as the industry takes off, airports say they have been forgotten at the gate.

Flying will be far more expensive this summer, indicated corporate travel manager American Express Global Business Travel (GBT), which analysed tens of thousands of client transactions on international flights to and from Asian destinations. A typical New York to Hong Kong flight in economy class cost more than twice as much this year as in 2019, and almost a third more than last year.

Major carriers heading to this week's annual meeting of the International Air Transport Association (Iata) have enjoyed a quick recovery. Fares have been bolstered by tight capacity going into travel's peak season and customers are eager to book, often upgrading to more expensive tickets. British Airways (BA) owner IAG posted a surprise quarterly profit last month and raised its outlook for the full year. Dubai's Emirates and Singapore Airlines reported record earnings, with Australia's Qantas on course to follow suit.

The month of May saw the iEdge S-Reit Index decline 3.0 per cent in total return on the back of persistent inflation and growing expectations of a June rate hike, reversing its 0.6 per cent gains in April.

However, on a year-to-date basis, the iEdge S-Reit Index remained in the green, with 1.8 per cent total returns, outpacing the STI Index's 0.3 per cent declines and the FTSE EPRA Nareit Developed Index's 0.9 per cent declines.

In terms of net fund flows over the month, retail investors net bought S$144 million of S-Reits while institutional investors net sold S$85 million of the sector.

Lee Jin Yong, chief executive officer of its managers, appears keen for the trust to be treated as separate from its US peers.

"It's a bit frustrating because you're doing everything right and improving performance, yet the market is not recognising that," he said. "We're seen as a US strategy, which we clearly are, but we're distinct because we're a different asset class than most of the other US strategies which are office-focused."

It has appointed JLL as the exclusive marketing agent to conduct an expression of interest (EOI) exercise for the two-storey, 999-year leasehold retail mall at the corner of Holland Road and Jalan Jelita.

The guide price is S$85 million, which works out to S$2,528 per square foot (psf) on the existing net lettable area (NLA) of 33,621 square feet (sq ft).

Jelita Shopping Centre is anchored by DFI Retail's Cold Storage supermarket brand. The outlet, which is open 24 hours a day, occupies the entire ground level of the mall, and spans about 20,000 sq ft.