SG Morning Highlights | Sembcorp's Net Profit Increases by 2%, Boosts Dividend in First Half of FY2024

Advancers / Decliners is 137 to 74, with 95.58 million securities worth S$153.15 million changing hands.

Colliers International predicts that office rental growth is likely to slow down in the upcoming year as the market faces stiffer competition and a dip in tenant demand. They project a modest growth rate of up to 2.0% for the full year. A key observation is that tenants are increasingly resistant to rent hikes, and companies are actively looking to optimize their use of space. While the market has not seen significant new companies seeking office space, existing tenants are primarily focusing on lease renewals or extensions. Some are even relocating to smaller premises. Although the traditional demand drivers like major financial institutions and tech firms are in the process of right-sizing, a more varied mix of businesses, including those in legal, professional services, and energy sectors, are somewhat offsetting the downward pressure by sustaining the demand for office space.

DBS analysts predict that REITs will be resilient in the expected August market dip, historically a weak month for the STI. They anticipate sideways market volatility and potential interest rate cuts in September to benefit REITs and highly leveraged companies. DBS recommends certain REITs and non-REITs, including CLAR, MLT, MPACT, MINT, and others, based on favorable trends and potential upside.

The company's order intake for the first half of the year was S$390.6 million, almost on par with the S$391 million from the first half of the previous year. By the end of the first six months of FY2024, CSE Global's order book stood at S$692.3 million, a substantial 32.7% increase from the year before, indicating a robust pipeline of unfulfilled orders.