SG Morning Highlights | RHB Analyst Forecasts Sustained Growth for Singapore's F&B Operators
Good morning mooers! Here are things you need to know about today's Singapore markets:
●Singapore shares opened higher on Monday; STI up 0.30%
●RHB Analyst Forecasts Sustained Growth for Singapore's F&B Operators
●SGX Predicts Stabilisation of Non-Oil Domestic Exports in 2024
●Stocks to watch: Jumbo Group
●Latest share buy back transactions
-moomoo News SG
Market Snapshot
Singapore shares opened higher on Monday. The $FTSE Singapore Straits Time Index (.STI.SG)$ rose 0.30 percent to 3,161.79 as at 9.05 am.
Advancers / Decliners is 127 to 31, with 63.86 million securities worth S$71.55 million changing hands.
Breaking News
RHB Analyst Forecasts Sustained Growth for Singapore's F&B Operators
According to RHB equity analyst Alfie Yeo, the Singapore downstream F&B services sector is expected to experience sustained growth this year due to improving consumer demand and better economic prospects. Yeo projected a 3% GDP growth for Singapore this year, up from an estimated 1.5% increase last year, which should translate into more positive consumption and income from the workforce. RHB has rated the sector "neutral," with coffee chain Kimly as its top pick due to continued outlet expansion and a favourable outlook for cafes. Yeo also prefers more resilient coffee shops over quick-service restaurants. Meanwhile, the FY2025 profit outlook for Japan Foods is rated as "cautious" due to elevated operating costs and manpower constraints. RHB has a "buy" rating for Kimly and a "neutral" rating for Japan Foods.
SGX Predicts Stabilisation of Non-Oil Domestic Exports in 2024
The potential chip rebound, looser finance conditions, and the World Trade Organisation's (WTO) global trade outlook, together with base effect and external factors, may lead to the stabilisation of non-oil domestic exports (NODX) in 2024, according to SGX. Although Singapore's recent export performance has not been as strong as that of Taiwan and South Korea, there are clear signs of stabilisation following the sharp declines that occurred from 4Q22 through to 3Q23, SGX stated.
In 2023, NODX contracted by 13%. SGX noted that the outlooks for the iEdge SG Advanced Manufacturing Index's most traded stocks are heavily influenced by external economic conditions, and majority of these stocks are trading below their Refinitiv consensus estimates due to headwinds. Nonetheless, SGX highlighted that the uneven economic growth across key segments of manufacturing and trade has provided opportunities for varied risk and return across the broad field of stocks with international revenue and manufacturing-relevant operations.
Stocks to Watch
$Jumbo (42R.SG)$: Jumbo Group's shareholders have approved the renewal of its share buyback mandate at the company's annual general meeting held on 19 January. The food and beverage player will offer S$0.26 in cash per share to buy back up to 10% of the company's 643,658,465 shares in issue, representing a 6.1% discount to the average market price of the shares over the last five market days before the offer was announced. Under the equal access offer, each shareholder can sell up to 10% of their shares. Up to 7.5 million of the shares bought back will be held or dealt with as treasury shares, while the remainder will be cancelled. The company posted a net profit of S$14.6 million for the year ended 30 September 2023.
Share Buy Back Transactions
Source: Business Times, SG investors
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