SG Morning Highlights | Manulife US Reit Reports Decreased H1 Income, Pauses Distributions Amid Restructuring
![SG Morning Highlights | Manulife US Reit Reports Decreased H1 Income, Pauses Distributions Amid Restructuring](https://sgsnsimg.moomoo.com/feed_image/101000102/d0733b648d4f319788f0887493af9e35.png/bigmoo)
Good morning mooers! Here are things you need to know about today's Singapore markets:
●Singapore shares opened lower on Monday; STI down 3.56%
●HDB Rental Market Predicted to Cool in Latter Half of 2024 with Expected Dip in Leasing Volumes
●Singapore's Solid Employment Rates Counterbalance Inflation Concerns, Keeping Core Inflation Forecast Steady at 3.3%
●Stocks to watch: Manulife US Reit, Dasin Retail Trust
●Latest share buy back transactions
-moomoo News SG
Market Snapshot
Singapore shares opened lower on Monday. The $FTSE Singapore Straits Time Index (.STI.SG)$ dropped 3.56 percent to 3261.04 as at 9:11 am.
Advancers / Decliners is 55 to 225, with 179.09 million securities worth S$295.11 million changing hands.
Breaking News
HDB Rental Market Predicted to Cool in Latter Half of 2024 with Expected Dip in Leasing Volumes
The HDB rental market in Singapore is anticipated to experience a downturn in the second half of 2024, with projected leasing volumes declining to between 36,500 and 38,000 units, down from 39,138 units in 2023. This forecasted slowdown is attributed to a decrease in rental inventory due to fewer flats meeting the minimum occupation period and a potential shift of tenants to the private sector, lured by competitive rental rates. Additionally, rental price growth for HDB units is expected to ease significantly to 2-3%, a stark contrast to the 10.2% increase seen in the previous year, as noted by OrangeTee.
Singapore's Solid Employment Rates Counterbalance Inflation Concerns, Keeping Core Inflation Forecast Steady at 3.3%
Despite worries about last-mile inflation risks amidst Singapore's economic recovery and tightening labor markets, which could lead to higher wage costs, Nomura's research indicates that the situation is balanced by better-than-expected labor statistics. A lower-than-expected core inflation in June is offset by rising freight costs and a drop in unemployment rates to 2.0% in Q2 2024, down from 2.1% in Q1. Employment has also seen a notable rise, excluding migrant domestic workers (MDW), jumping to 11.3k in Q2 from 4.7k in Q1. With the core inflation forecast for 2024 holding at 3.3%, within the Monetary Authority of Singapore’s (MAS) prediction range and higher than the consensus forecast, MAS is expected to maintain its FX policy throughout 2024. The Q2 labor market data, suggesting full employment, reinforces the expectation that MAS will be cautious about easing its policy too soon, avoiding the entrenchment of inflationary pressures.
Stocks to Watch
$ManulifeReit USD (BTOU.SG)$: Manulife US Reit has seen a 27.5% decrease in H1 FY2024 distributable income per unit to US$0.0129 due to increased finance expenses from higher interest costs, resulting in gross revenue and net property income declines. The Reit is suspending distributions until end-2025 for recapitalisation and restructuring, with a current gearing ratio at 60%, and has initiated asset sales to improve returns, with promising interest from potential buyers.
$Dasin Retail Tr (CEDU.SG)$: A group of requisitionists is accusing Dasin Retail Trust Management of failing to arrange an extraordinary general meeting (EGM) within the required timeline as per the Business Trusts Act. In response to this alleged breach, the requisitionists plan to conduct the EGM themselves before September 20 and claim the associated costs from the trustee-manager, which won't be covered by the trust property. The requisitionists, holding approximately 12.57% of the total voting rights, are seeking to amend the trust deed to restrict the trustee-manager's power and to remove and appoint a new adviser for financial restructuring. Dasin Retail Trust Management, on its part, has requested to hold the EGM by the end of September, noting the need for the bourse operator's approval for trust deed amendments and adherence to listing rules. They have ensured cooperation with the requisitionists to organize the EGM, pledging to cover any reasonable expenses.
Share Buy Back Transactions
![SG Morning Highlights | Manulife US Reit Reports Decreased H1 Income, Pauses Distributions Amid Restructuring](https://sgsnsimg.moomoo.com/sns_client_feed/101000102/20240805/73df7dd128074e6b8c67c2bc2ba4dee3.jpg?area=101&is_public=true)
Source: Business Times, SGinvestors.io, Business Review
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103677010 : noted