SG Morning Highlights | Analysts Cut Targets on Sea, Mixed on E-commerce Growth Pursuits

Advancers / Decliners is 63 to 99, with 69.10 million securities worth S$87.01 million changing hands.

Compared to other Southeast Asian countries (SEA), salaries in Singapore will stay flat in 2024. According to global professional services firm Aon plc, the median salary in Singapore will rise by 4.0%, the same level of increase in 2023. Amongst sectors in Singapore, technology will likely have the highest increase in median salary at 4.5%. Aon reported that across SEA, particularly in Singapore, Malaysia, and the Philippines, more than half of the roles have had salary increases outrun inflation. In Singapore and the Philippines, 71.7% of salary increases outran inflation.

Analysts have cut their target prices on Internet company Sea, amid mixed sentiment over the group’s ability to resist intense competition and reap the fruits from planned investments to bolster its e-commerce segment. Maybank on Wednesday lowered its target price by 22.5 per cent to US$62 from US$80, after cutting Shopee's growth outlook in view of increased expenses. The move affected its net profit forecasts for FY2023-25, which are now down by 31 per cent to 42 per cent. Similarly, OCBC Investment Research revised its fair value estimate on Sea to US$64 from US$70 after fine-tuning its assumptions. It said that Sea’s management is adopting the right strategy for long-term growth, as e-commerce penetration remains low in the markets it currently operates in – suggesting significant growth potential.