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>Within the Singapore stock market, Sembcorp Industries and Seatrium have booked the most net institutional fund inflows in the year to Jul 18.</li><li>Seatrium has been Singapore’s sixth most traded stock, while Sembcorp Industries has ranked among the 15 most traded stocks, up from ranking among the 30 most traded stocks in 2022.</li><li>Overall, Singapore Exchange-listed stocks have booked S$2.8 billion of net institutional fund outflow and S 4 billion of net retail inflow in the 2023 year to Jul 18.</li></ul>

Within the Singapore stock market, Sembcorp Industries and Seatrium have booked the most net institutional fund inflows in the year to Jul 18.Seatrium has been Singapore’s sixth most traded stock, while Sembcorp Industries has ranked among the 15 most traded stocks, up from ranking among the 30 most traded stocks in 2022.Overall, Singapore Exchange-listed stocks have booked S$2.8 billion of net institutional fund outflow and S 4 billion of net retail inflow in the 2023 year to Jul 18.

Taking stock of institutional and retail fund flows

External broker reports(aggregated public sources), UOB Kay Hian

UOB Kay Hian

External broker reports(aggregated public sources)

Backed by the UOB Group, UOB Kay Hian is one of Asia’s largest brokerage firms. Headquartered in Singapore, we are supported by more than 80 branches worldwide including a growing network of offices across Southeast Asia, Greater China, the United Kingdom and North America. Our global footprint and strong international presence have enabled us to feel the pulse of key financial markets and deliver incisive intelligence across industry sectors and asset classes. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>We factor in potential valuation losses and the cost to reduce gearing to correctly appraise the valuation for Prime US REIT.</li><li>We estimate fair value of investment properties to drop 10% and aggregate leverage to hit 48% at end-23.</li><li>Valuation is attractive with Prime US REIT's 2024 distribution yield at 17.4% and P/NAV at 0.44x. Maintain BUY. Target price: US$0.61.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We factor in potential valuation losses and the cost to reduce gearing to correctly appraise the valuation for Prime US REIT.We estimate fair value of investment properties to drop 10% and aggregate leverage to hit 48% at end-23.Valuation is attractive with Prime US REIT's 2024 distribution yield at 17.4% and P/NAV at 0.44x. Maintain BUY. Target price: US$0.61.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Prime US REIT 1Q23 - Resiliency From Diversified Tenant Mix; Bombed-Out Valuations

External broker reports(aggregated public sources), RHB Invest

RHB Invest

RHB Investment Bank is one of the leading capital market players in Malaysia. Supported by an award-winning research team of experienced product specialists, RHB Group Investment Banking offers a full range of investment banking products and services covering primary markets, such as advisory (corporate & debt restructuring, mergers and acquisitions, takeovers), fundraising via both equity and debt instruments, and secondary markets including securities trading for both institutional and retail clients. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Prime US REIT's 1Q23 update shows resilient operational numbers.</li><li>While occupancy is expected to see slight fluctuations on tenant movements, we expect it to remain above 85% with slight positive rent reversions.</li><li>Keep BUY rating on Prime US REIT with new US$0.57 target price.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Prime US REIT's 1Q23 update shows resilient operational numbers.While occupancy is expected to see slight fluctuations on tenant movements, we expect it to remain above 85% with slight positive rent reversions.Keep BUY rating on Prime US REIT with new US$0.57 target price.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

<ul><li>Share buybacks by primary listed companies 3 Mar - 9 Mar 2023 Meanwhile, Genting Singapore, Sembcorp Industries, Jardine Matheson, Singapore Airlines, Yangzijiang Shipbuilding (Holdings) led the net institutional inflow for the five sessions.</li><li>There were 19 primary-listed companies conducting share buybacks over the five trading sessions through to Mar 9, with a total consideration of S$10.6 million.</li></ul>

Share buybacks by primary listed companies 3 Mar - 9 Mar 2023 Meanwhile, Genting Singapore, Sembcorp Industries, Jardine Matheson, Singapore Airlines, Yangzijiang Shipbuilding (Holdings) led the net institutional inflow for the five sessions.There were 19 primary-listed companies conducting share buybacks over the five trading sessions through to Mar 9, with a total consideration of S$10.6 million.

Buybacks, director transactions resume at a lively pace

Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Headquartered in Singapore, SooChow CSSD Capital Markets (Asia) is an investment bank focusing on emerging growth companies across Asia, providing a full suite of investment banking services, including corporate finance, mergers and acquisitions advisory, equity capital markets, institutional equities sales and trading and equities research.

SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/manulife-us-reit" target="_blank" data-smartkarma-citation="entities:567" rel="noopener">Manulife US REIT (MUST) (MUST SP)</a> 1H22 DPU -3.3% YoY; Cyclical downturn incoming, hotelisation trend emerging</li>
<li>
<a href="https://www.smartkarma.com/entities/prime-us-reit" target="_blank" data-smartkarma-citation="entities:28144" rel="noopener">Prime US REIT (PRIME SP)</a> 1H22 DPU +5.7% YoY; Operation metrics holding up well (for now) amidst recession</li>
<li>
<a href="https://www.smartkarma.com/entities/ara-us-hospitality-trust" target="_blank" data-smartkarma-citation="entities:28048" rel="noopener">ARA US Hospitality Trust (ARAUS SP)</a> 1H22 DPU of US$1.43c declared; A significant recovery in occupancies and RevPAR</li>
</ul>



Manulife US REIT (MUST) (MUST SP) 1H22 DPU -3.3% YoY; Cyclical downturn incoming, hotelisation trend emerging

Prime US REIT (PRIME SP) 1H22 DPU +5.7% YoY; Operation metrics holding up well (for now) amidst recession

ARA US Hospitality Trust (ARAUS SP) 1H22 DPU of US$1.43c declared; A significant recovery in occupancies and RevPAR


ASEAN Builder's Scoop (4Aug22) - MUST Hotelisation Trend Emerging

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Prime US REIT (PRIME SP)

Taking stock of institutional and retail fund flows

Within the Singapore stock market, Sembcorp Industries and Seatrium have booked the most net institutional fund inflows in the year to Jul...

Singapore Exchange Ltd (SGX)

Prime US REIT 1Q23 - Resiliency From Diversified Tenant Mix; Bombed-Out Valuations

We factor in potential valuation losses and the cost to reduce gearing to correctly appraise the valuation for Prime US REIT.

UOB Kay Hian

Prime US REIT - Focusing On Operations

Prime US REIT's 1Q23 update shows resilient operational numbers. While occupancy is expected to see slight fluctuations on tenant movements, we...

RHB Invest

Buybacks, director transactions resume at a lively pace

Share buybacks by primary listed companies 3 Mar - 9 Mar 2023 Meanwhile, Genting Singapore, Sembcorp Industries, Jardine Matheson, Singapore...

Singapore Exchange Ltd (SGX)

ASEAN Builder's Scoop (4Aug22) - MUST Hotelisation Trend Emerging

PRIME operations holding up well for now; ARAUS significant recovery in RevPAR; Ascott first lyf brand in Tokyo; CBD office rents up 0.4% QoQ in...

SCCM Asia Research

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