Market Snapshot

Singapore stocks opened flat on Friday. STI was little changed, MLT up 0.8%, CDL up 0.4%.

Stocks to Watch

Mapletree Logistics Trust (MLT): Its trustee, HSBC Institutional Trust Services, has entered into a purchase agreement to divest a property at 8 Tuas View Square for about S$11.2 million, 39.8 per cent above its latest valuation. The proposed divestment is expected to be completed by the first quarter of FY2025/2026, and is not expected to have a material impact on MLT’s net asset value and net property income for the financial year. Units of MLT closed on Thursday up 0.8 per cent or S$0.01 at S$1.27, before the news.

City Developments Ltd (CDL): The real estate company has achieved total divestments of more than S$600 million in 2024 as part of its capital recycling initiative, including the Cideco Industrial Complex in Singapore and strata units in other local properties. The sale of the retail and office components of Hong Leong City Center, a mixed-use development in Suzhou, is currently under contract and slated for completion this quarter, with the first payment of 15 per cent completed. Shares of CDL closed 0.2 per cent or S$0.01 lower at S$5.05 on Thursday, before the news.

Frasers Property: Responding to shareholders’ questions at an annual general meeting, the group said it is placing a sharper focus on capital efficiency as it seeks to reduce its gearing to a more comfortable range. It will also continue to pursue risk-adjusted returns and divest assets “at the right time, at the right value”, reported The Business Times on Thursday. The counter ended 0.5 per cent or S$0.005 higher at S$0.935.

Market News

Singapore key exports extend growth, with December exports up 9%

Singapore’s non-oil domestic exports (NODX) grew 9 per cent year on year, as both electronics and non-electronics shipments rose, data from Enterprise Singapore (EnterpriseSG) showed on Friday (Jan 17).

This was an extension of the previous month’s 3.4 per cent rise, and surpassed the estimates of private-sector economists who were anticipating a 7.8 per cent year-on-year growth.

On a seasonally adjusted monthly basis, NODX expanded 1.7 per cent in December to S$15.8 billion, extending the previous month’s 14.7 per cent growth.

SG banks to report ‘softer’ earnings for Q4

Singapore’s big three banks are expected to report “seasonally softer” earnings for Q4 2024, with more citizens having travelled overseas.

Business activity during the quarter decreased amidst heightened leisure travel and year-end festivities, according toa report by CGS International.

Net interest margin of the three banks is expected to be mixed, with DBS likely recording a small expansion, and UOB and OCBC slipping.

All three banks should have excess capital of around $2.5b to $4b each. DBS, in particular, may declare a special dividend, said CGS International analysts Andrea Choong and Lim Siew Khee.