SG Morning Highlights | Singapore's Economy Expands by 4.1% YoY in Q3, Beating Expectations

Moomoo News SG wrote a column · Oct 14, 2024 09:14

SG Morning Highlights | Singapore's Economy Expands by 4.1% YoY in Q3, Beating Expectations

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%

● Singapore's Economy Expands by 4.1% Year-on-Year in Q3; Sees 2.1% Sequential Growth

● Singapore's Central Bank Holds Monetary Policy Steady in October Meeting

● Stocks to watch: Clar, Yangzijiang Shipbuilding, UOL, SingLand, etc.

● 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 3584.46 as at 9:10 am.

Advancers / Decliners is 103 / 63, with 90.38M million securities worth S$107.57M million changing hands.

Breaking News

Singapore's Economy Expands by 4.1% Year-on-Year in Q3; Sees 2.1% Sequential Growth

Singapore's economy experienced a year-on-year growth of 4.1% in the third quarter of 2024, marking an improvement from the 2.9% growth observed in the prior quarter, according to advance estimates by the Ministry of Trade and Industry (MTI) released on Monday (Oct 14) morning. The gross domestic product (GDP) increased by 2.1% on a seasonally adjusted quarterly basis, a significant rise from the 0.4% growth seen in the previous quarter.

In the manufacturing sector, there was a notable year-on-year increase of 7.5% in Q3, which reversed the 1.1% decline reported in the previous quarter. On the other hand, the construction sector expanded by 3.1% year-on-year, although this was a deceleration from the 4.8% growth noted in the prior quarter.

Singapore's Central Bank Holds Monetary Policy Steady in October Meeting

In its October session on Monday (Oct 14), Singapore's central bank, the Monetary Authority of Singapore (MAS), decided to maintain its current monetary policy settings. This decision marks the sixth consecutive meeting without changes, aligning with market anticipations.

For 2025, MAS now predicts that core inflation will average near the mid-point of the projected range of 1.5% to 2.5%. Previously, during the July policy assessment, the forecast for core inflation was set at "around 2 per cent". Additionally, the expected average for headline inflation next year is also projected to be between 1.5% and 2.5%.

As for 2024, MAS anticipates that core inflation will conclude the year around 2 per cent and will average between 2.5% and 3.0% over the entirety of the year. This is a reduction from the 4.2% recorded in 2023. Furthermore, the CPI-All Items inflation, which decreased to 2.3% year-on-year from July to August, is expected to settle at around 2.5% for this year, a drop from 4.8% last year.

Stocks to Watch

$CapLand Ascendas REIT (A17U.SG)$ disclosed its plan to sell an industrial property for S$112.8 million, securing a S$45.3 million premium, nearly double its initial purchase price of S$58.4 million. On October 11, the REIT's manager revealed that the proceeds would serve multiple purposes, including debt reduction. They projected a decrease in aggregate leverage from 37.9% to approximately 37.4%, assuming the net proceeds are utilized to repay Clar’s borrowings as of December 31, 2023. The transaction is slated for completion in the fourth quarter of this year and is not anticipated to significantly affect Clar’s net asset value or distribution per unit for the fiscal year ending December 31, 2024. Prior to the announcement, Clar's units closed at S$2.79 on Friday, reflecting a slight decrease of 0.4% or S$0.01.

$YZJ Shipbldg SGD (BS6.SG)$ reported that arbitration proceedings have been initiated by customers against three of its subsidiaries concerning disputes over 10 vessel orders valued at US$900 million, citing breach of contract. The initial hearings are set for November 14, with the claimants seeking US$835 million in compensation. Yangzijiang has stated that these claims are unlikely to materially impact the group’s financial standing for the fiscal year ending December 2024. The company's shares ended last Friday at S$2.50, up by S$0.02 or 0.8%, ahead of this news.

$UOL (U14.SG)$ and $SingaporeLandGrp (U06.SG)$ have announced a joint acquisition of a 50 percent stake in a commercial property valued at A$460 million (S$404.7 million) located in Sydney's central business district. The property development giants will uphold an 80/20 partnership in this venture. Financing will come from internal resources and external borrowings, with the transaction expected to close in the first half of 2025. This move aims to diversify and fortify their revenue streams and expand their footprint in Australia. Market response saw SingLand's shares drop slightly by 0.6 percent to S$1.75, and UOL's by 0.7 percent to S$5.40, just before the announcement on Friday.

$Sasseur Reit (CRPU.SG)$, managed by its dedicated team, reported a record-breaking RMB 276.1 million (S$51 million) in sales during the Golden Week, across its four outlets in China. This surge reflects a 28 percent annual increase and a 55 percent jump from pre-pandemic figures in 2019, marking a significant rebound in domestic consumption. These figures notably surpassed the national growth in retail sales, which saw a 9 percent year-on-year increase. However, Sasseur Reit's shares saw a minor decline of 0.7 percent to S$0.705 on Friday.

$Sabana Reit (M1GU.SG)$ faces scrutiny from unitholders regarding the nomination of three director candidates by the trustee, as the Reit transitions to internal management without a sponsor. An extraordinary general meeting has been scheduled for October 18 to deliberate on these nominations, which are supported by both the requisitionists and the trustee. Sabana Reit’s shares remained stable, closing at S$0.375 on Friday.

Share Buy Back Transactions