SG Morning Highlights | UOB Surpasses Estimates with 16% Higher Q3 Profit of S$1.61 Billion

Advancers / Decliners is 104 / 53, with 97.35M securities worth S$216.37M changing hands.

In a recent analysis by Savills, retail sales in Singapore, excluding motor vehicles, showed a downturn in July and August, continuing a trend of weak overall sales. The decline was noted across most categories with the exception of food and alcohol, and supermarkets and hypermarkets. The food and beverage sector also saw a general decline, albeit with a slight growth in food catering services. Despite a 3.5% rise in Q3 2024 in the wholesale and retail trade, transportation, and storage sectors, and improvements in the accommodation sector due to recovering tourism, significant weaknesses remain. Sales in apparel, footwear, watches, jewelry, and department stores were particularly affected. Savills highlighted that high local prices and a strong Singapore dollar might encourage more consumers to spend abroad, potentially exacerbating the decline in domestic retail sales.

In Q3 2024, Singapore's office rents saw a slight increase of 0.3% quarter-on-quarter, primarily driven by lease renewals at higher rates and a constrained supply of premium and Grade A office spaces, as reported by Colliers. The vacancy levels for these office spaces have remained below 5%, underscoring the limited availability in the market. This period also marked a significant annual growth in leasing activity across the Asia-Pacific region, with a 10.7% increase year-on-year, where Singapore, along with India and New Zealand, recorded growth rates exceeding 30%. The completion of new office buildings in Singapore during the quarter suggests a positive outlook for future office space supply.