SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

<ul><li>S-Reits with retail assets in Singapore reported strong committed occupancy and positive rental reversions, driven by tourism recovery.</li><li>Frasers Centrepoint Trust, CapitaLand Integrated Commercial Trust, and Mapletree Pan Asia Commercial Trust reported occupancy above 99% and rental growth.</li><li>CBRE and DBS Group Research anticipate continued strong leasing sentiment and retail rent growth in Singapore through 2025.</li></ul>

S-Reits with retail assets in Singapore reported strong committed occupancy and positive rental reversions, driven by tourism recovery.Frasers Centrepoint Trust, CapitaLand Integrated Commercial Trust, and Mapletree Pan Asia Commercial Trust reported occupancy above 99% and rental growth.CBRE and DBS Group Research anticipate continued strong leasing sentiment and retail rent growth in Singapore through 2025.

REIT Watch – Occupancy remains high for S-Reits’ Singapore retail assets

Capitaland Integrated Commercial Trust / Equity Bottom-Up

<ul><li>S-REITs rebounded 5.2% with S$50 million net institutional inflow, led by CapitaLand Integrated Commercial Trust and Frasers Centrepoint Trust.</li><li>US Fed Fund Rates outlook turned dovish, with expectations of 75bps cuts by 2026 due to weak consumer gauges.</li><li>Larger-cap S-REITs averaged 4.8% returns, outperforming smaller-cap counterparts, supported by institutional inflows and index weightings.</li></ul>

S-REITs rebounded 5.2% with S$50 million net institutional inflow, led by CapitaLand Integrated Commercial Trust and Frasers Centrepoint Trust.US Fed Fund Rates outlook turned dovish, with expectations of 75bps cuts by 2026 due to weak consumer gauges.Larger-cap S-REITs averaged 4.8% returns, outperforming smaller-cap counterparts, supported by institutional inflows and index weightings.

S-REITs That Bucked Recent Market Downturn

<ul><li>Over the five trading sessions from Nov 1 to 7, institutions were net sellers of Singapore stocks, resulting in a net institutional outflow of S$141 million.</li><li>Stocks that led the net institutional outflow over those five sessions were OCBC, Capitaland Ascendas Reit, CapitaLand Integrated Commercial Trust, Mapletree Pan Asia Commercial Trust, Mapletree Industrial Trust, UOB, Frasers Centrepoint Trust, Suntec Reit, Frasers Logistics & Commercial Trust and Keppel.</li><li>Notably, in the November 2024 rebalance, Singapore stands out as the only Asia developed market with a net increase in MSCI Standard Index constituents.</li></ul>

Over the five trading sessions from Nov 1 to 7, institutions were net sellers of Singapore stocks, resulting in a net institutional outflow of S$141 million.Stocks that led the net institutional outflow over those five sessions were OCBC, Capitaland Ascendas Reit, CapitaLand Integrated Commercial Trust, Mapletree Pan Asia Commercial Trust, Mapletree Industrial Trust, UOB, Frasers Centrepoint Trust, Suntec Reit, Frasers Logistics & Commercial Trust and Keppel.Notably, in the November 2024 rebalance, Singapore stands out as the only Asia developed market with a net increase in MSCI Standard Index constituents.

SIA Engineering resumes buybacks after reporting H1 FY2025 results

Frasers Logistics & Commercial Trust / Equity Bottom-Up

<ul><li>REIT Watch - S-Reits continue to expand through DPU-accretive acquisitions Nevertheless, S-Reits are still expanding their portfolios as we see Reit managers announce proposed acquisitions and developments in the year thus far.</li><li>MLT announced the proposed acquisitions of three logistics properties – one in Malaysia and two in Vietnam – for a total acquisition cost of about S$234 million.</li></ul>

REIT Watch - S-Reits continue to expand through DPU-accretive acquisitions Nevertheless, S-Reits are still expanding their portfolios as we see Reit managers announce proposed acquisitions and developments in the year thus far.MLT announced the proposed acquisitions of three logistics properties – one in Malaysia and two in Vietnam – for a total acquisition cost of about S$234 million.

REIT Watch - S-Reits continue to expand through DPU-accretive acquisitions

Frasers Centrepoint Trust / Equity Bottom-Up

<ul><li>The STI March quarterly review will see Frasers Centrepoint Trust (FCT) added to the STI effective the Monday 18 March open.</li><li>FCT’s inclusion is expected to take the STI’s REIT Sector weight back to ~13% from ~12% at present, and the number of STI REITs back to seven, following Keppel DC REIT leaving the STI in June 2023.</li><li>Impacting the outlook for financing costs, this has seen the six STI REITs average 9.4% declines in unit prices post the indicative 29 Dec 2023 STI weightages.</li></ul>

The STI March quarterly review will see Frasers Centrepoint Trust (FCT) added to the STI effective the Monday 18 March open.FCT’s inclusion is expected to take the STI’s REIT Sector weight back to ~13% from ~12% at present, and the number of STI REITs back to seven, following Keppel DC REIT leaving the STI in June 2023.Impacting the outlook for financing costs, this has seen the six STI REITs average 9.4% declines in unit prices post the indicative 29 Dec 2023 STI weightages.

STI REIT Sector Weight to Return to ~13% with Frasers Centrepoint Trust Inclusion 

Singapore

Frasers Property Limited provides real estate ownership and development services. The Company engages in the development of land, housing projects, apartments, as well as commercial, industrial, and retail properties. Frasers Property serves customers globally.

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Frasers Property Ltd (FPL SP)

REIT Watch – Occupancy remains high for S-Reits’ Singapore retail assets

S-Reits with retail assets in Singapore reported strong committed occupancy and positive rental reversions, driven by tourism recovery. Frasers...

Singapore Exchange Ltd (SGX)

S-REITs That Bucked Recent Market Downturn

S-REITs rebounded 5.2% with S$50 million net institutional inflow, led by CapitaLand Integrated Commercial Trust and Frasers Centrepoint Trust. US...

Singapore Exchange Ltd (SGX)

SIA Engineering resumes buybacks after reporting H1 FY2025 results

Over the five trading sessions from Nov 1 to 7, institutions were net sellers of Singapore stocks, resulting in a net institutional outflow of...

Singapore Exchange Ltd (SGX)

REIT Watch - S-Reits continue to expand through DPU-accretive acquisitions

REIT Watch - S-Reits continue to expand through DPU-accretive acquisitions Nevertheless, S-Reits are still expanding their portfolios as we see...

Singapore Exchange Ltd (SGX)

STI REIT Sector Weight to Return to ~13% with Frasers Centrepoint Trust Inclusion

The STI March quarterly review will see Frasers Centrepoint Trust (FCT) added to the STI effective the Monday 18 March open. FCT’s inclusion is...

Singapore Exchange Ltd (SGX)

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