SG Morning Highlights | Singapore Airlines Invests S$1.1 Billion in Airbus A350 Fleet Upgrades

Moomoo News SG wrote a column · Nov 5, 2024 09:10

SG Morning Highlights | Singapore Airlines Invests S$1.1 Billion in Airbus A350 Fleet Upgrades

Good morning mooers! Here are things you need to know about today's Singapore markets:

● Singapore shares opened lower on Tuesday; STI down 0.31%

● US Election Outcomes Could Shape Singapore Equities Through 2025

● Singapore Leads APAC in Life Sciences Investments

● Stocks to watch: SIA, CapitaLand Investment, NetLink NBN Trust, etc.

● Latest share buy back transactions

- Moomoo News SG

Market Snapshot

Singapore shares opened lower on Tuesday. The $FTSE Singapore Straits Time Index (.STI.SG)$ rose 0.31 percent to 3560.90 as at 9:09 am.

Advancers / Decliners is 64 / 80, with 70.19M securities worth S$101.02M changing hands.

Breaking News

US Election Outcomes Could Shape Singapore Equities Through 2025

DBS analysts predict that the US elections will significantly impact Singapore equities into 2025. A Republican sweep could negatively affect REITs and stocks with Chinese exposure, but benefit companies like SATS, ST Engineering, SGX, iFAST, ComfortDelGro, and Singapore Airlines due to US reshoring efforts and capped oil prices. A Kamala Harris presidency might be favorable for regional markets, enhancing stability in global trade and benefiting real estate-focused trusts and companies involved in clean energy. Regardless of the outcome, technology supply chain shifts into ASEAN could benefit Venture Corp and Frencken. The Straits Times Index (STI) could reach 3750 by year-end with calm elections and low rates, but may drop to 3480 or lower if Republicans win and rates rise.

Singapore Leads APAC in Life Sciences Investments

Singapore has established itself as the leading hub for life sciences investments in the Asia Pacific region, capturing the majority of investment volume in the first nine months of 2024. According to a JLL report, Singapore's government has played a significant role in promoting the development of this sector. Key transactions during this period include the Brunei Investment Agency acquiring a 49% stake in Ho Bee Land's Elementum for US$206 million, and a joint venture between Warburg Pincus and Lendlease purchasing a US$1.2 billion portfolio from Blackstone and the Lim family, consisting of business parks and specialist facilities geared toward life sciences, technology, advanced manufacturing, and logistics. JLL highlighted Singapore's global leadership in innovation and talent, making it a prime location for multinational life sciences firms. However, the report also noted a shortage of high-quality life sciences and R&D spaces, suggesting opportunities for investors to convert industrial assets into specialized labs or engage in sale and leaseback deals.

Stocks to Watch

$SIA (C6L.SG)$: Singapore Airlines (SIA) has announced a significant investment of S$1.1 billion to retrofit its Airbus A350 fleet and refresh its service offerings, aiming to maintain its competitive edge in the premium travel sector. This initiative, which is scheduled to be completed by 2030, comes as rival airlines also commit substantial funds to enhance their fleets. SIA’s aircraft maintenance subsidiary, SIA Engineering Company (SIAEC), will be responsible for the upgrades. The announcement led to a slight increase in the stock prices of both companies; SIA shares rose by 0.3% or S$0.02 to S$6.46, and SIAEC shares increased by 1.2% or S$0.03 to S$2.45 on Monday, prior to the public disclosure of the investment plan.

$CapitaLandInvest (9CI.SG)$: CapitaLand Investment (CLI) has announced securing a S$261 million capital commitment from Mitsui OSK Lines (MOL) for its private funds focused on Southeast Asia and India. Additionally, CLI is finalizing its S$525 million CapitaLand India Growth Fund 2 (CIGF2), with a S$131 million capital commitment from MOL’s real estate subsidiary, Daibiru Corporation. These investments highlight growing confidence in CLI's regional investment strategies. Despite these developments, CLI shares remained unchanged, closing at S$1.97 on Monday.

$CapLand IntCom T (C38U.SG)$: CapitaLand Integrated Commercial Trust (CICT) has reported a 5.4% increase in net property income, reaching S$289.8 million for the third quarter ending September 2024. The trust's manager attributed this growth to higher gross rental income coupled with reduced operating expenses. Following this positive financial update, CICT units experienced a slight uptick, closing at S$2.04 on Monday, up S$0.01 or 0.5%.

$NetLink NBN Tr (CJLU.SG)$: NetLink NBN Trust has disclosed a modest 1.1% increase in its distribution per unit, rising to S$0.0268 for the first half of the fiscal year 2025, which ended on September 30. However, the fibre optic owner experienced a decline in financial performance, with net profit falling 8.3% to S$48.5 million and revenue slightly decreasing by 0.2% to S$204.8 million. Earnings per unit also dropped to S$0.0124 from S$0.0136 year-over-year. Despite the mixed results, the stock closed up 1.1% or S$0.01 at S$0.915 on Monday, prior to the announcement.

$AIMS APAC Reit (O5RU.SG)$: Aims Apac Real Estate Investment Trust (AA Reit) has announced a modest increase in its distribution per unit (DPU) for the first half of fiscal year 2025. The DPU rose by 0.4% to S$0.0467, up from S$0.0465 during the same period last year. The REIT's management attributed this growth primarily to rental increases across its logistics, warehouse, and industrial segments. Despite this positive update, units of AA Reit closed flat at S$1.27 on Monday.

$Stoneweg Reit EUR (CWBU.SG)$: Cromwell European Real Estate Investment Trust (Cromwell E-Reit) has announced a 7% year-on-year increase in its net property income for the third quarter ending September 2024, totaling 34.5 million euros (approximately S$45.5 million). The growth has been attributed to the successful completion of its Nervesa21 office redevelopment in Milan and the Novo Mesto ONE Industrial Park I/III logistics development near Bratislava. Following this positive development, units of Cromwell E-Reit closed with an increase of S$0.01 or 0.6%, reaching 1.65 euros on Monday.

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