SG Morning Highlights | Mitsui & Co. Acquires Stake in SATS for Asian Frozen Food Venture
Good morning mooers! Here are things you need to know about today's Singapore markets:
●Singapore shares opened lower on Friday; STI down 0.64%
●Singapore Rental Market Poised for Turnaround Amidst Headcount Growth and Rent Moderation
●Nearly One-Third of SGX's Most Traded Stocks Score Double-Digit Gains
●Stocks to watch: SATS, Keppel
●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 0.64 percent to 3449.04 as at 9:11 am.
Advancers / Decliners is 53 to 99, with 77.06 million securities worth S$101.15 million changing hands.
Breaking News
Singapore Rental Market Poised for Turnaround Amidst Headcount Growth and Rent Moderation
The Singapore rental market has remained stagnant in Q2 2024, with condo rents showing no change and HDB rents inching up by 0.5%, as reported by OrangeTee. This lull has been attributed to a decrease in demand due to expatriates leaving amidst layoffs and inflation, and locals transitioning into owned homes, with some expats deeming the rents uncompetitive compared to other major cities. However, Huttons Asia observes potential for market support, forecasting that employer-driven headcount increases in H2 could absorb excess vacancies, hinting at a stabilization of rents and a modest HDB market growth of 3%-5% in 2024. They also suggest that the condo rental market might be approaching a trough. OrangeTee speculates that if rents moderate, it could entice more expatriates to return, providing a further boost to the rental market in Singapore.
Nearly One-Third of SGX's Most Traded Stocks Score Double-Digit Gains
Singapore's stock market has witnessed a varied performance among its 100 most traded stocks, with 29 of them achieving double-digit total returns within the current year. The Singapore Exchange noted that these returns are in line with the Straits Times Index's (STI) 10.6% total return as of July 17. Leaders in the maritime and offshore services sector, namely Beng Kuang Marine, Mermaid Maritime, Yoma Strategic, Yangzijiang Shipbuilding, and Samudera Shipping, topped the list of most traded stocks, benefiting from slightly higher oil prices and prospects of a global trade recovery. Despite this success, 21 of the most active stocks on the SGX faced double-digit losses over the same timeframe.
Stocks to Watch
$SATS (S58.SG)$: Japanese trading giant Mitsui & Co. has formed a strategic partnership with SATS, a prominent Singaporean airport services and in-flight meal supplier, to delve into the burgeoning Asian frozen food market. Mitsui is set to invest approximately 4 billion yen ($25.5 million) for a 15% share in SATS's subsidiary, Food Solutions Sapphire Holdings, which operates across India, Thailand, China, and Singapore. This investment, expected to complete by September, leverages SATS's expertise in high food-safety standards and the ability to cater to diverse food requirements, including halal compliance. The collaboration, building on a 2023 agreement, aims to capitalize on Asia's growing middle class and urbanization that has spiked demand for convenient frozen and prepackaged meals. SATS will benefit from Mitsui's extensive sales and procurement networks to diversify beyond its core business of in-flight catering, while in Japan, SATS's subsidiary TFK is already distributing products through high-end supermarkets with Mitsui's assistance.
$Keppel (BN4.SG)$: Keppel Corporation has signed a memorandum of understanding (MOU) with Japanese trading firm Sojitz to explore and develop clean energy ventures in the Asia-Pacific region. This strategic partnership aims to leverage Keppel’s Energy-as-a-Service (EaaS) solutions and Sojitz's extensive international network to identify and execute projects in bioenergy, resource recovery, and other energy solutions that facilitate the energy transition in the region. The collaboration will focus on investing in and operating projects that align with both companies' decarbonization goals. While Keppel has already made strides with its EaaS solutions in Singapore and internationally, including securing notable contracts for cooling systems, the partnership with Sojitz is expected to broaden their market reach without materially impacting Keppel's financial performance for the current year, according to Cindy Lim, CEO of Keppel’s infrastructure division.
Share Buy Back Transactions
Source: Business Times, SGinvestors.io, Business Review
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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