SG Morning Highlights | OCBC Posts 5% Q1 Profit Rise to S$1.98 Billion
Good morning mooers! Here are things you need to know about today's Singapore markets:
●Singapore shares opened higher on Friday; STI up 0.60%
●Business Park Rents See Fastest Growth Since 2017 in Q124, But May Soften Due to Elevated Vacancies
●Singapore Office Demand Softens as Tech Firms and Banks Scale Back
●Stocks to watch: OCBC, Singpost
●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 0.60 percent to 3285.59 as at 9:06 am.
Advancers / Decliners is 103 to 33, with 53.03 million securities worth S$69.51 million changing hands.
Breaking News
Business Park Rents See Fastest Growth Since 2017 in Q124, But May Soften Due to Elevated Vacancies
Business park rents in Singapore saw their fastest growth since 2Q17 in 1Q24, increasing by 2.1% quarter-on-quarter, according to a report by Colliers. The growth was attributed to newer and better-located business parks. However, Colliers also noted that rents may soften as vacancy rates remain elevated, especially in the outlying and older business parks. The occupancy rate in 1Q24 declined by 40 basis points to 78%. Colliers expects leasing activity to pick up with new supply coming on stream in the later part of the year, although overall demand for business park spaces remained muted, with more renewals and occupiers right-sizing.
Singapore Office Demand Softens as Tech Firms and Banks Scale Back
According to CBRE, demand for office space in Singapore from the tech and banking sectors remains subdued, leading to limited near-term requirements for deskspace. Previously leading office expansions, these sectors are now scaling back. However, CBRE notes that there are some bright spots with the potential rebound of the tech industry, which has been driving demand for more workspace recently before its downturn. Early signs of recovery include declining shadow space returned by tech firms as some are choosing to keep them for their own use, and the expansion plans announced by some Chinese tech companies. CBRE also noted that the volume of requests for proposals from occupiers has increased as companies across industries adapt to changing demands in the workplace.
Stocks to Watch
$OCBC Bank(O39.SG$: OCBC has reported a 5% rise in net profit for Q1 to S$1.98 billion, according to a report, buoyed by strong growth in operating profit. This beat the S$1.85 billion consensus forecast in a Bloomberg survey of three analysts. Total income for the quarter rose 8% to S$3.63 billion, with net interest income up 4% to S$2.44 billion and non-interest income up 17% to S$1.2 billion. The bank's non-performing loans ratio at the end of the quarter was 1%, down 0.1 percentage point from the previous year.
$SingPost(S08.SG$: Singapore Post (SingPost) has reported a net profit of S$66.9 million for the second half ended March, a 93.4% increase from S$34.6 million the previous year, according to a report. This resulted in an earnings per share of S$0.0273 for the second half, up from S$0.013 in H2 FY2023. Including distribution to perpetual securities holders, EPS for the period stood at S$0.0297, up from S$0.0154 a year prior. Despite a 5.9% decline in revenue for H2 FY2024 to S$859.5 million, SingPost's bottom line was buoyed by S$38.8 million in exceptional gains, up 138.7% year-on-year mainly due to a fair value gain in investment properties.
$Fu Yu(F13.SG$: Precision plastic components manufacturer Fu Yu Corp has reported a net profit of S$5,200 for the first quarter of its 2024 fiscal year ended March, according to a report. This is a reversal of the net loss of S$2.4 million reported in the same period last year. Revenue in the quarter more than doubled to S$78.9 million from S$36 million last year, due to higher contributions from Fu Yu Supply Chain Solutions. However, revenue from the group’s manufacturing business slipped 4% to S$25.3 million from S$26.3 million a year earlier, mainly due to lower sales volume for its networking and communications, as well as printing and imaging segments.
Share Buy Back Transactions
Source: Business Times, SGinvestors.io, Business Review
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