SG Morning Highlights | Keppel DC Reit and Sponsor Acquire Tokyo Data Centre for 23.4 Billion Yen

Advancers / Decliners is 123 to 44, with 138.43 million securities worth S$197.64 million changing hands.

Singapore's hotel and hospitality market has experienced improved operational performance but continues to lag behind in investments due to elevated interest rates, according to CBRE. Although transaction activity has slowed, the gap between buyer-seller expectations is narrowing. Private investors are focusing on extracting value at the asset level through rebranding, refurbishments, and change of use, while also targeting the emerging co-living market. Despite the lack of investment in the hotel and hospitality market, Singapore enjoys deep liquidity and favorable supply/demand dynamics in Asia-Pacific. However, new supply will be limited over the medium term due to a sharp increase in construction costs, with supply growth estimated at a 0.6% CAGR from 2024 to 2027.

According to a report by Nomura, core inflation in Singapore is likely to remain above 3% for the rest of 2024 due to a stronger economic rebound and high labour costs. The report maintains a core inflation outlook of 3.3% for the year, which is at the higher end of the official forecast range of 2.5% to 3.5% by the Monetary Authority of Singapore (MAS). Core inflation rose to 3.1% in May, marking the third straight month of sustained growth. Nomura also expects a GDP growth forecast of 3% YoY this year, with a bright economic outlook supported by the global tech turnaround, and the services sector benefiting from robust tourism.