SG Morning Highlights | Singapore Semiconductor Stocks Poised to Ride AI Boom as Key Links in Supply Chain: Analysts
Good morning mooers! Here are things you need to know about today's Singapore:
●Singapore shares opened lower on Monday; STI down 0.64%
●Singapore semiconductor stocks poised to ride AI boom as key links in supply chain: analysts
●Stocks to watch: ESR Logos Reit, Ho Bee Land, Sabana Reit
●Latest share buy back transactions
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Market Trend
Singapore shares opened lower on Monday. The $FTSE Singapore Straits Time Index (.STI.SG)$ lost 0.64 per cent to 3,227.83 as at 9.24 am.
Advancers / Decliners is 85 to 118, with 244.45 million securities worth S$146.00 million changing hands.
Breaking News
Analysts are expecting muted results from Singapore-listed real estate investment trusts (S-Reits) for the first half of 2023. High interest rates and a strong Singapore dollar are among the potential drags on their performance.
Key metrics to watch include property valuations as well as how individual Reits are coping with interest cost pressures and refinancing.
"Overall, we expect a soft earnings report for H1 2023 for the majority of the S-Reits, with the exception of a few in the industrial, healthcare and office/retail sector," said RHB analyst Vijay Natarajan, who expects many Reits to report lower distributions per unit (DPUs).
Singapore-listed semiconductor companies are drawing attention from analysts as under-the-radar beneficiaries of the artificial intelligence (AI) boom.
While these Singapore players may not produce the chips that power artificial intelligence (AI) applications, their roles in chip supply chains could make them less obvious beneficiaries of the AI trend.
In the outlook for the second half of the year, DBS Group Research equity analysts said AI could breathe new life into the recovery in tech counters.
Stocks to Watch
$ESR-LOGOS REIT (J91U.SG)$: The manager of ESR-Logos Reit said on Friday (Jul 14) that the divestment of seven non-core assets is in line with its strategy, and dismissed "speculation or insinuation" that the real estate investment trust (Reit) was in financial distress.
The Reit manager issued the statement following a commentary in The Business Times, which called for the manager to justify the decision to sell these assets below valuation.
Last month, E-Log announced a proposed divestment of seven non-core assets in Singapore and Australia for around S$337 million. These included a portfolio of five assets that were being divested for S$313.5 million, representing a 5.1 per cent discount to valuation.
$Ho Bee Land (H13.SG)$: Ho Bee Land said on Friday (Jul 14) that the group expects to report an overall net loss for the first half ended June 2023.
The property developer and investor said in a bourse filing that the losses are mainly attributable to fair-value loss based on indicative valuations of the group's portfolio of investment properties in London.
"The fair-value loss on the London portfolio is non-cash in nature and arose mainly due to higher capitalisation rates," the company said.
$Sabana Reit (M1GU.SG)$: It is not clear how much time or money would be needed to replace Sabana Reit's manager or internalise its management function, should unitholders vote to do so at an upcoming extraordinary general meeting (EGM), the trustee of the real estate investment trust (Reit) said in a draft statement.
The draft statement was contained in a letter sent to Sabana Real Estate Investment Management (SREIM), the Reit manager of Sabana Industrial Real Estate Investment Trust (Sabana Reit), SREIM said on Saturday (Jul 15).
In the letter, HSBC Institutional Trust Services (HSBC Trustee), trustee of Sabana Reit, said it "does not provide any advice or recommendation" to unitholders whether in support of or against the resolutions they are due to vote on at the EGM slated for Aug 4.
Latest Share Buy Back Transactions
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