SG Morning Highlights | Wing Tai Holdings' H2 Net Loss Nearly Doubles Amid Property Market Downturn
Good morning mooers! Here are things you need to know about today's Singapore markets:
●Singapore shares opened lower on Wednesday; STI down 0.47%
●Economists Divided on MAS's Future Monetary Policy Amid Stable Inflation
●Anticipated Growth in Singapore's Manufacturing Sector in Q4 2024
●Condo Resale Volumes Surge in July, Expected to Cool in August
●Stocks to watch: Wing Tai, Keppel Infrastructure Trust
●Latest share buy back transactions
-moomoo News SG
Market Snapshot
Singapore shares opened lower on Wednesday. The $FTSE Singapore Straits Time Index (.STI.SG)$ dropped 0.47 percent to 3382.43 as at 9:22 am.
Advancers / Decliners is 93 to 95, with 122.12 million securities worth S$96.18 million changing hands.
Breaking News
Economists Divided on MAS's Future Monetary Policy Amid Stable Inflation
Economic experts express differing opinions on the Monetary Authority of Singapore's (MAS) next steps following stable headline inflation in July at 2.5% year-on-year. RHB believes MAS will maintain its current policy settings throughout the year, emphasizing the nation's strong economic growth and diminishing global inflation risks. They argue that the current rate of appreciation of the S$NEER policy band is sufficient to control imported inflation and domestic cost pressures for medium-term price stability.
Conversely, UOB predicts that MAS may start policy normalization in October 2024, potentially reducing the S$NEER slope due to a broad-based easing in core inflation, which dropped to 2.5% in July from 2.9% in June. UOB anticipates a significant reduction in core inflation by the first quarter of 2025, driven by base effects, and expects an average core inflation of 3.0% for 2024.
RHB has adjusted its headline inflation forecast down to 2.6% from 3.5%, citing subdued regional inflation trends and slower-than-anticipated increases this year, while maintaining a full-year core inflation forecast of 2.8%.
Anticipated Growth in Singapore's Manufacturing Sector in Q4 2024
Manufacturing growth in Singapore is expected to accelerate in the fourth quarter of 2024, particularly in the electronics sector, following a 1.8% year-over-year output increase in July. UOB attributes potential growth to easing policy rates by major central banks, which could enhance investment and consumer spending. Additionally, the electronics sector is likely to see growth from inventory replenishment and upgrades of outdated electronics. RHB projects continued strength in manufacturing, driven by global trade and economic recovery, predicting a 1.0% growth in industrial production for the full year.
Condo Resale Volumes Surge in July, Expected to Cool in August
Condo resale volumes in Singapore saw a significant increase of 32.2% in July, with 1,075 units resold compared to 813 in June, marking a 21.7% year-on-year rise according to the 99-SRX Media Flash Report. The majority of these sales were in the Outside Central Region (OCR) which accounted for 51.9% of transactions. This spike is attributed to seasonal activity post-school holidays. However, experts predict a quieter market in August due to the Lunar Seventh Month, with resale condo prices expected to remain stable through the end of 2024.
Stocks to Watch
$Wing Tai (W05.SG)$: Wing Tai Holdings reported a significant widening of its net loss for the second half of FY2024, escalating to S$99.2 million from S$50 million a year ago. This loss was primarily fueled by lower revenue from development properties, including the underperforming condominium project, The M. Revenue plummeted by 67% to S$71.5 million. Loss per share also deepened to S$0.1338 from S$0.0701 in the previous year. The company's associated and joint venture companies, particularly in a challenging Hong Kong market, contributed heavily to the financial downturn. For the full year, Wing Tai Holdings reversed from a net profit of S$13.3 million in FY2023 to a net loss of S$78.7 million in FY2024, with revenue dropping 64% to S$169.2 million. Despite these challenges, Wing Tai remains cautiously optimistic about future improvements in the Singapore private residential market.
$Kep Infra Tr (A7RU.SG)$: Keppel Infrastructure Trust (KIT) has announced a private placement aimed to generate at least S$200 million. The funds will be used primarily to repay a portion of a S$391.8 million term loan, which facilitated the acquisition of Ventura Motors in Australia. The placement units will be offered at a discount of 6% to 8.6% from the previous day's volume-weighted average price (VWAP) of S$0.4662, with the final issue price to be determined. Additionally, KIT plans to declare an advanced distribution of S$0.007 per unit for the period starting July 1 until the placement's issue date. Proceeds will also cover placement-related fees and help repay existing debts. The placement is expected to close on August 28, following a trading halt requested by the trustee-manager.
Share Buy Back Transactions
Source: Business Times, SGinvestors.io, Business Review
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103117826 : This kind of management can’t believe. Sell it asap
103916021 : he