SG Morning Highlights | LMIRT's Leverage Ratio Climbs as Property Values Decline
Good morning mooers! Here are things you need to know about today's Singapore markets:
●Singapore shares opened higher on Friday; STI up 0.26%
●Singdollar Set to Maintain Strength in 2024 Amidst Tight Monetary Policy
●Stocks to watch: LMIRT, Dyna-Mac, ManulifeReit USD
●Latest share buy back transactions
-moomoo News SG
Market Snapshot
Singapore shares opened higher on Friday. The $FTSE Singapore Straits Time Index (.STI.SG)$ rose 0.26 percent to 3,182.41 as at 9.04 am.
Advancers / Decliners is 63 to 51, with 74.99 million securities worth S$54.72 million changing hands.
Breaking News
Singdollar Set to Maintain Strength in 2024 Amidst Tight Monetary Policy
The Singapore dollar, having outperformed other Asian currencies in 2023, is poised to continue its strong showing into 2024, bolstered by the Monetary Authority of Singapore's (MAS) tight monetary policy and a projected weaker US dollar. While MAS held steady on the Singdollar's policy band last year, allowing it to gain against various currencies, it is anticipated to maintain this stance through 2024 unless core inflation significantly drops, potentially giving room for other major Asian currencies like the yen and ringgit to rise. This outlook hinges on the influence of US monetary policy and China's economic performance.
Stocks to Watch
$Lippo Malls Tr (D5IU.SG)$: Lippo Malls Indonesia Retail Trust's (LMIRT) aggregate leverage ratio increased to 44.3% by the end of Q4 2023, up from 43% the previous quarter, amidst a 7.7% decrease in investment property values. Despite this, debt levels fell to S$19.5 million, and the trust stays within Singapore's 45% leverage limit. The exact leverage ratio will be confirmed with Q4 financial statements, and the trust is committed to adhering to the financial covenants of its loans. LMIRT's unit price closed at S$0.014, down prior to the leverage update.
$Dyna-Mac (NO4.SG)$: Singapore's Dyna-Mac has strategically acquired Exterran Offshore for $8.25 million, securing a 4.5-hectare yard to enhance its project capacity. Positioned adjacent to its core facility, this move aims to slash outsourcing needs, driving down costs and elevating efficiency. As part of a broader facility restructure, the acquisition aligns with Dyna-Mac's growth trajectory and is complemented by a robust influx of new contracts, bolstering its order book without significantly impacting its financial outlook for 2024.
$ManulifeReit USD (BTOU.SG)$：Manulife US Real Estate Investment Trust (BTOU) has seen an 8% valuation drop in its property portfolio to US$1.4 billion as of December 2023, predicting a FY2023 loss due to fair value declines, which will also lower its net asset value by US$0.07 per unit. Despite the downturn, driven by economic volatility and softer office market demand, the trust's rental income is expected to cover its financial obligations.
Share Buy Back Transactions
Source: Business Times, SG investors
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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