SG Morning Highlights | CapitaLand India Trust Sets S$150 Million Note Issuance at 3.7% Interest
Good morning mooers! Here are things you need to know about today's Singapore markets:
●Singapore shares opened lower on Friday; STI down 0.05%
●Singapore Unit Trust Funds See Surge in Q2 Inflows; CPFIS Funds Return Dips
●Affluent Singaporeans Display Greater Economic Optimism Compared to the Mass Segment
●Stocks to watch: Marco Polo Marine, CapitaLand India Trust
●Latest share buy back transactions
-moomoo News SG
Market Snapshot
Singapore shares opened lower on Friday. The $FTSE Singapore Straits Time Index (.STI.SG)$ dropped 0.05 percent to 3372.01 as at 9:17 am.
Advancers / Decliners is 83 to 52, with 62.46 million securities worth S$72.40 million changing hands.
Breaking News
Singapore Unit Trust Funds See Surge in Q2 Inflows; CPFIS Funds Return Dips
In the second quarter of 2024, Singapore unit trust funds experienced a marked rebound with a significant 88.9% increase in net inflows, amounting to S$1.8 billion, up from S$975.3 million in the previous quarter, according to a Morningstar report. Equity funds saw S$261.2 million inflows, contrasting with the outflows in the prior quarter. Fixed income and money-market funds also contributed to the increase. Despite this, the Central Provident Fund Investment Scheme (CPFIS) funds saw a decrease in their average three-month return, falling to 3.1% from 4.9% in Q1. Over a one-year period ending in June 2024, CPFIS funds still managed a positive return of 9.7%. The performance reflects a mix of investor demand and market trends, with a particular focus on Asia, which influenced the CPFIS funds' returns amidst global market variances.
In the second quarter of 2024, Singapore unit trust funds experienced a marked rebound with a significant 88.9% increase in net inflows, amounting to S$1.8 billion, up from S$975.3 million in the previous quarter, according to a Morningstar report. Equity funds saw S$261.2 million inflows, contrasting with the outflows in the prior quarter. Fixed income and money-market funds also contributed to the increase. Despite this, the Central Provident Fund Investment Scheme (CPFIS) funds saw a decrease in their average three-month return, falling to 3.1% from 4.9% in Q1. Over a one-year period ending in June 2024, CPFIS funds still managed a positive return of 9.7%. The performance reflects a mix of investor demand and market trends, with a particular focus on Asia, which influenced the CPFIS funds' returns amidst global market variances.
Affluent Singaporeans Display Greater Economic Optimism Compared to the Mass Segment
A study by MDRi, a business group of Mishcon de Reya, reveals a stark contrast in economic optimism between affluent Singaporeans and the mass population segment. The affluent are notably more confident about Singapore's economic prospects, with 72% expressing optimism about local economic growth, in stark contrast to just 42% within the mass segment. Furthermore, pessimism about the economy is lower among the affluent, with only 10% feeling more negative, as opposed to 18% among the broader population. Overall, a slight majority of 51% of Singaporeans are optimistic about the economic direction, while 17% are more pessimistic, indicating a trend where economic sentiment correlates with wealth levels in Singapore.
A study by MDRi, a business group of Mishcon de Reya, reveals a stark contrast in economic optimism between affluent Singaporeans and the mass population segment. The affluent are notably more confident about Singapore's economic prospects, with 72% expressing optimism about local economic growth, in stark contrast to just 42% within the mass segment. Furthermore, pessimism about the economy is lower among the affluent, with only 10% feeling more negative, as opposed to 18% among the broader population. Overall, a slight majority of 51% of Singaporeans are optimistic about the economic direction, while 17% are more pessimistic, indicating a trend where economic sentiment correlates with wealth levels in Singapore.
Stocks to Watch
$CapLand India T (CY6U.SG)$: CapitaLand India Trust (Clint) trustee-manager has declared the pricing of S$150 million notes at a fixed interest rate of 3.7% per annum, with maturity due in 2027. These notes, which will have their interest payments made semi-annually in arrear, are anticipated to receive a “BBB-” rating from Fitch Ratings. DBS Bank is appointed as the sole global coordinator and ratings adviser, and alongside UOB, as the joint lead managers for the note issuance. The funds raised from this issuance are intended for refinancing existing debts, repaying loans, and supporting Clint's business activities, acquisitions, and general working capital needs. The notes are scheduled for issuance on August 30, and plans are in place for them to be listed on the Singapore Exchange by September 2.
$MarcoPolo Marine (5LY.SG)$: Marco Polo Marine, an integrated marine logistics firm, reported a slight gross profit increase of 2.6% in the third quarter ending June 30, 2024, reaching S$14.6 million, up from S$14.2 million in the same period the previous year. This improvement comes even as the company saw a 4.6% drop in revenue to S$34.9 million, down from S$36.8 million, which was attributed to capacity constraints in its shipyard segment. Specifically, a dry dock was fully occupied with the construction of a Commissioning Service Operation Vessel (CSOV), limiting the company's ability to accept third-party jobs. A delay in the delivery of the CSOV could lead to the activation of a liquidated damages clause by the client, Vestas Taiwan, but Marco Polo Marine does not expect this to materially impact its net profit for the financial year. The company also benefited from favorable supply-demand conditions, allowing it to charge higher charter rates for its Offshore Support Vessels (OSVs), and it remains positive about the OSV market outlook due to rising investments in clean energy and a tight offshore oil and gas market.
Share Buy Back Transactions
Source: Business Times, SGinvestors.io, Business Review
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