What happened?
In this week’s Weekly Market Review in partnership with Securities Investors Association Singapore (SIAS), we discuss the volatility in global financial markets and also share more about the following:
- CapitaLand Integrated Commercial Trust
- CapitaLand Investments
- ST Engineering
Watch the video to learn more about what we are looking out for this week.
Weekly Market Review
2:00 – Macro Update
- The S&P 500 closed closed higher at 5,554 points in its best week so far this year.
- Gains were led by tech stocks, with the Nasdaq recording a gain of 5.3%.
- The Straits Times Index (STI) rose by 2.8%, and is back to above 3,300 level.
- Retail sales in the US was stronger than expected, while the US Consumer Price Index (CPI) eased further.
- Investor concerns of a potential US recession subsided
- Market expectations are almost certain for a rate cut by the Federal Reserve in September
4:49 – Singapore market updates
STI Top performers:
- ST Engineering share price
- DFI Retail Group share price
- DBS share price
- SGX share price
- Singapore Airlines share price
STI Worst performers:
- Seatrium share price
- Sembcorp Industries share price
- UOL share price
- City Developments share price
- Thai Beverage share price
5:50 – CapitaLand Integrated Commercial Trust
- CICT shares rebounded from a low of $1.70 to $2.11.
- The REIT reported growth in gross revenue, net property income, and distributable income in the first half of 2024 (H1 2024).
- The portfolio’s overall occupancy rate dipped slightly to 96.8%, with retail assets improving their occupancy to 99%.
- Rent reversion was positive, with incoming rents exceeding outgoing rents across suburban and downtown retail properties.
- Tenant sales for suburban malls grew by 1.8%, while downtown malls saw a decline due to slower tourist arrivals.
- The REIT’s leverage decreased to 39.8%, and the interest coverage ratio remains strong at 3 times.
- CICT declared a higher distribution per unit (DPU) in H1 2024.
- The current dividend yield is 5.2%, with a price-to-book ratio of 1x
Read our analysis on CICT 1H24 earnings here.
Related links:
12:35 – CapitaLand Investment
- CapitaLand Investment shares declined from $3.20 to $2.57.
- The company reported a 14% year-over-year decline in operating profit after tax and minority interest (PATMI) to $104 million in the first half of 2024 (H1 2024), down from $175 million in H1 2023.
- Fee income grew by 8% year-over-year, driven by stable growth across private fund management, lodging management, and commercial management segments.
- Real estate investment business faced significant pressure, with operating EBITDA in non-Asia dropping to $135 million from $548 million last year.
- CapitaLand Investment’s price-to-book ratio is currently at 0.96x, below its historical average.
Related links:
- CapitaLand Investment share price and share price target
- CapitaLand Investment dividend history and dividend forecast
16:19 – ST Engineering
- ST Engineering shares rose to a 52-week high after strong first-half performance in 2024.
- The company reported a revenue increase of 14% year-over-year to $4.8 billion, with profit rising by 20% to $340 million for H1 2024.
- Operating profit grew across all business segments, including commercial aerospace, defence and public security, and urban solutions & Satcom.
- ST Engineering secured $6.1 billion in new contracts, with $2.6 billion in orders coming from the defence and public security division.
- The order book increased to $27.9 billion, with $4.9 billion expected to be delivered by the end of 2024.
- The current price-to-book ratio is 5.5x, above the historical average of 4.7x, while the dividend yield is 3.5%, below the historical average of 4.2%.
Related links:
- ST Engineering share price and share price target
- ST Engineering dividend history and dividend forecast
19:23 – Technical Analysis
STI Technical Analysis
- The STI is currently testing the 3,350-point level, which was a high in early June.
- If the STI crosses above this level, it may establish new support and target the year-to-date high at 3,509 points.
- The index is above both the 50-day and 200-day moving averages, indicating positive momentum.
- The MACD shows potential for a new uptrend, and the RSI at 50 suggests increasing upward momentum.
Dow Jones Technical Analysis
- The Dow Jones is rebounding strongly and is currently at 40,659 points.
- The index is close to the all-time high of 41,376 points and is above the 50-day and 20-day moving averages.
- The MACD indicates a positive uptrend, and the RSI is near 60, suggesting strong momentum.
S&P 500 Technical Analysis
- The S&P 500, at 5,554 points, is near its all-time high of 5,669 points.
- The MACD shows positive momentum with a recent crossover, and the RSI at 59 indicates healthy upward movement.
- The index is likely to test the all-time high.
NASDAQ Composite Technical Analysis
- The NASDAQ Composite is at 17,631 points, approaching the all-time high of 18,671 points.
- The MACD indicates positive momentum with recent uptrends, and the RSI at 56 suggests room for further gains.
- The index is expected to continue moving towards the all-time high.
What to look out for this week
- Tuesday, 20 Aug: SIAS Corporate Connect with Cromwell European REIT
- Thursday, 22 Aug: SGX Discovery Series with Maybank Securities: Singapore Market Outlook and Small-Mid Cap Gems
- Friday, 23 Aug: Singapore Consumer Price Index (CPI) data
Get the full list of Singapore stocks, REITs and ETFs with upcoming dividend payments with our dividend calendar.
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