SG Morning Highlights | Singtel's Nxera Partners with TM to Develop Data Centres in Johor, as Part of Its Expansion Strategy
Good morning mooers! Here are things you need to know about today's Singapore markets:
●Singapore shares opened higher on Wednesday; STI up 0.63%
●Singapore Housing Rents Soar 8% YoY, Matching Hong Kong as World's Most Expensive City
●Singapore's YoY Investment Volume Plunges 34.7% in Q1, with Commercial Sector Seeing the Biggest Decline
●Stocks to watch: SingTel, SIA, Sabana Reit
●Latest share buy back transactions
-moomoo News SG
Market Snapshot
Singapore shares opened higher on Wednesday. The $FTSE Singapore Straits Time Index (.STI.SG)$ rose 0.63 percent to 3322.64 as at 9:10 am.
Advancers / Decliners is 106 to 45, with 63.29 million securities worth S$116.96 million changing hands.
Breaking News
Singapore Housing Rents Soar 8% YoY, Matching Hong Kong as World's Most Expensive City
Housing rental prices in Singapore rose by 8% YoY in 2024, matching Hong Kong as the world's most expensive city according to Mercer's latest study. The report also noted that high transportation costs and the rising cost of goods and services have pushed Singapore to become one of the world's most expensive cities. Istanbul saw the highest growth in housing rents among the cities in the study, with rents rising 301% YoY.
Singapore's YoY Investment Volume Plunges 34.7% in Q1, with Commercial Sector Seeing the Biggest Decline
Singapore's investment landscape experienced a significant dip in Q1 2024, with investment volumes dropping by 34.7% YoY, with the commercial sector experiencing the most significant declines. The investment this quarter was supported by the retail sector, which contributed about 40.3%, followed by the hospitality sector at 20.5%, and the industrial sector at 11%. However, the disparity between seller expectations and buyer offers continues to impact transaction volumes, with sellers holding strong due to anticipated lower interest rates. Despite the downturn, WeiLeng Tang, Managing Director & Head of Capital Markets at Colliers Singapore, is optimistic about the recovery and growth prospects for 2024, projecting that investment sales will be between SGD 22 to 24 billion, which is 5 to 15% higher than in 2023.
Stocks to Watch
$Singtel (Z74.SG)$: Singapore Telecommunications (Singtel)'s regional data centre business, Nxera, is partnering with Malaysian telco TM to develop data centres, starting with one in Johor. Singtel is also part of a consortium, along with US investment firm KKR, which will invest S$1.75 billion in data-centre provider ST Telemedia Global Data Centres. This move is part of Singtel's strategy to expand its data centre business and strengthen its position in the growing market. Shares of Singtel closed 1.2% higher at S$2.58 on Tuesday.
$SIA (C6L.SG)$: Singapore Airlines (SIA) has reported a 10.2% YoY increase in passenger traffic in May 2024, as demand for air travel remained robust. SIA and Scoot carried a total of 3.2 million passengers over the month, which is 14.3% higher than the year before. This increase in passenger traffic is a positive sign for the airline industry, which has been severely impacted by the COVID-19 pandemic. Shares of SIA closed 0.5% higher at S$6.76 on Tuesday, before the announcement.
$Sabana Reit (M1GU.SG)$: Sabana Real Estate Investment Trust (Sabana Reit) has priced S$100 million of sustainability-linked bonds due 2029, with a coupon rate of 4.15% per annum. The bonds will be issued in denominations of S$250,000, and if the Reit fails to meet its sustainability performance target, there will be a coupon step-up for the bonds. The net proceeds from the bond issue will be used for capital expenditures, such as acquiring new properties and asset enhancement initiatives, as well as refinancing existing term loans. The bond issuance has been criticized by activist investor Quarz Capital, who called it "highly abnormal and extraordinary." However, Sabana Reit's trustee has defended the bond issuance, stating that the terms do not impede internalization. HSBC's Singapore branch and CIMB Bank Berhad's Singapore branch have been appointed as joint lead managers, joint bookrunners, and joint sustainability-linked framework structuring advisors for the issue of the bonds.
Share Buy Back Transactions
Source: Business Times, SGinvestors.io, Business Review
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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