SG Morning Highlights | SIA Posts 13.9% YoY Passenger Traffic Growth in March Operating Update
Good morning mooers! Here are things you need to know about today's Singapore markets:
●Singapore shares opened lower on Tuesday; STI down 0.27%
●PM Lee to Step Down on May 15; DPM Lawrence Wong to Become New PM
●Residential Sector Dominates 1Q24 Investment with $1.79B, Despite 48.5% QoQ Drop
●Three Decarbonisation Strategies to Boost Singapore's Green Leadership
●Stocks to watch: SIA, Sabana Reit
-moomoo News SG
Market Snapshot
Singapore shares opened lower on Tuesday. The $FTSE Singapore Straits Time Index (.STI.SG)$ dropped 0.27 percent to 3,175.08 as at 9.04 am.
Advancers / Decliners is 47 to 67, with 46.24 million securities worth S$70.70 million changing hands.
Breaking News
PM Lee to Step Down on May 15; DPM Lawrence Wong to Become New PM
Prime Minister Lee Hsien Loong will step down from his role on May 15, and his successor will be Deputy Prime Minister (DPM) and Minister for Finance Lawrence Wong, according to a statement from the Prime Minister's Office. Wong has the unanimous support of the People's Action Party MPs and will be Singapore's fourth prime minister. Lee has asked all Singaporeans to give Wong and his team full support and work with them to create a brighter future for Singapore. Previously, Lee had announced plans to step down before Singapore's next general election in November 2023. The announcement comes after DPM Heng Swee Keat's decision to step down as leader of the ruling PAP's 4G team.
Residential Sector Dominates 1Q24 Investment with $1.79B, Despite 48.5% QoQ Drop
The residential sector has dominated investment sales in 1Q24 with $1.79 billion, accounting for 43.3% of the total transactions for the period. However, residential investment sales dropped 48.5% quarter-on-quarter. The commercial property sector followed closely behind with $1.3 billion worth of investment sales in 1Q24. Like residential, the commercial property sector also saw a drop in total transactions, recording a 20.9% QoQ dip. Meanwhile, the industrial sector recorded $375.4 million in investment sales in 1Q24, a 25% growth from 4Q23. The largest private sector transaction in 1Q24, the $140 million sale of OneTen Paya Lebar, belonged to the industrial sector. Savills noted that this attests to the attraction of high-quality data centre assets in Singapore by investors and operators.
Three Decarbonisation Strategies to Boost Singapore's Green Leadership
A report by Bain & Company, GenZero, Standard Chartered, and Temasek titled "Southeast Asia's Green Economy 2024 Report: Moving the needle" has suggested that Singapore adopt three additional decarbonisation strategies to further solidify its leadership in sustainability. The report recommends that Singapore enable virtual power purchase agreement (vPPA) via bilateral grid interconnection to diversify its energy sources. It also suggests building a system to increase energy efficiency in data centres and investing in waste streams for biofuel production and low-carbon transition fuels for maritime. Singapore made US$913 million worth of private green investments in 2023, accounting for 14% of Southeast Asia deals. The report attributed the drop to a decrease in the size of individual deals.
Stocks to Watch
$SIA (C6L.SG)$: Singapore Airlines (SIA) and Scoot carried a combined total of 3.3 million passengers in March 2024, up 20.7% year-on-year (YoY), according to SIA's operating update. SIA and Scoot posted monthly passenger load factors of 86.3% and 93.1%, respectively. The group's passenger load factor decreased 1.3 percentage points YoY to reach 87.7%. The cargo load factor for March 2024 hit a monthly high of 60%, 4.9 percentage points higher than the same period last year, due to increased inventory flows by shippers and charters for various entertainment events. As of end-March, SIA's passenger network covered 118 destinations in 35 countries and territories, while the cargo network comprised 123 destinations in 37 countries and territories.
$Sabana Reit (M1GU.SG)$: Sabana Reit has reported a decline in portfolio occupancy in Q1 2024, due to the repossession of properties at Penjuru Lane. The portfolio occupancy slipped from 91.2% in Q4 2023 to 83% in Q1 2024, due to the repossession of 33 and 35 Penjuru Lane, which were previously master-leased. Sabana Reit has also faced high staff attrition amid uncertainties following Quarz Capital's bid to internalise the manager function of the Reit. The total resignation rate for the manager has climbed to 47.6% as of April 15. Sabana Reit filed a claim last November against Kleio One-Solution for possession of the Penjuru lane premises and payment of arrears in rent and other payments owed to the Reit. The Reit has taken possession of the properties and is pursuing necessary legal proceedings to claim approximately S$4 million from Kleio.
Source: Business Times, SGinvestors.io
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