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

United Hampshire US REIT / Equity Bottom-Up

<ul><li>Inside Insights - Wee Ee Cheong boosts UOB stake For the 5 trading sessions that spanned Aug 19 to Aug 25, the Straits Times Index (STI) declined 0.8 per cent, with the FTSE China A50 Index declining 0.9 per cent, the Hang Seng Index gaining 1.3 per cent and the FTSE Bursa Malaysia KLCI declining 1.1 per cent.</li><li>Between Aug 16 and 22, United Overseas Bank (UOB) deputy chairman and CEO Wee Ee Cheong acquired 100,000 shares at an average price of S$26.86 per share.</li></ul>

Inside Insights - Wee Ee Cheong boosts UOB stake For the 5 trading sessions that spanned Aug 19 to Aug 25, the Straits Times Index (STI) declined 0.8 per cent, with the FTSE China A50 Index declining 0.9 per cent, the Hang Seng Index gaining 1.3 per cent and the FTSE Bursa Malaysia KLCI declining 1.1 per cent.Between Aug 16 and 22, United Overseas Bank (UOB) deputy chairman and CEO Wee Ee Cheong acquired 100,000 shares at an average price of S$26.86 per share.

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/frasers-property-ltd" target="_blank" data-smartkarma-citation="entities:1670" rel="noopener">Frasers Property Ltd (FPL SP)</a> establishes Frasers Property Capital to focus on finding capital partners for investments</li><li><a href="https://www.smartkarma.com/entities/united-hampshire-us-reit" target="_blank" data-smartkarma-citation="entities:28874" rel="noopener">United Hampshire US REIT (UHU SP)</a> is confident in refinancing its short-term debt maturing in FY23</li><li>Relocation of Paya Lebar Air Base could increase housing supply with more en-bloc sales and SERS</li></ul>

Frasers Property Ltd (FPL SP) establishes Frasers Property Capital to focus on finding capital partners for investmentsUnited Hampshire US REIT (UHU SP) is confident in refinancing its short-term debt maturing in FY23Relocation of Paya Lebar Air Base could increase housing supply with more en-bloc sales and SERS

ASEAN Builder's Scoop (23Aug22) - FPL Establishes FP Capital to Find Capital Partners

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ec-world-reit" target="_blank" data-smartkarma-citation="entities:22842" rel="noopener">EC World Reit (ECWREIT SP)</a> 2Q22 DPU -9.5% YoY; Hit by the pre-termination compensation, though top-line remains stable</li>
<li>
<a href="https://www.smartkarma.com/entities/sasseur-reit" target="_blank" data-smartkarma-citation="entities:26807" rel="noopener">Sasseur REIT (SASSR SP)</a> 2Q22 DPU -1.6% YoY; Weak performance of variable rental income though occupancy improving</li>
<li>
<a href="https://www.smartkarma.com/entities/cromwell-european-real-estate" target="_blank" data-smartkarma-citation="entities:25889" rel="noopener">Cromwell European REIT (CERT SP)</a> 1H22 DPU +2.3% YoY; Weaknesses in I&amp;L reversions, overall portfolio metrics remain stable</li>
</ul>



EC World Reit (ECWREIT SP) 2Q22 DPU -9.5% YoY; Hit by the pre-termination compensation, though top-line remains stable

Sasseur REIT (SASSR SP) 2Q22 DPU -1.6% YoY; Weak performance of variable rental income though occupancy improving

Cromwell European REIT (CERT SP) 1H22 DPU +2.3% YoY; Weaknesses in I&amp;L reversions, overall portfolio metrics remain stable


ASEAN Builder's Scoop (12Aug22) - ECWREIT Steady Top-Line Due to Master Leases

<ul><li>Private home prices +3.5% QoQ in 2Q22; More completions in 2022-23 could help ease price rise</li><li>AMO Residence condo in Ang Mo Kio sold over 98% on its launch day</li><li>Office rents +2.4% QoQ in 2Q22; Limited supply can offset potentially slowing demand for rest of 2022</li></ul>

Private home prices +3.5% QoQ in 2Q22; More completions in 2022-23 could help ease price riseAMO Residence condo in Ang Mo Kio sold over 98% on its launch dayOffice rents +2.4% QoQ in 2Q22; Limited supply can offset potentially slowing demand for rest of 2022

ASEAN Builder's Scoop (25Jul22) - Private Home Prices and Rents Soar in 2Q22

Capitaland Integrated Commercial Trust / Equity Bottom-Up

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 <div class='content-caption'>REIT Watch 27 Jun</div>
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In Q2 2022 to date, the Straits Times Index (STI) has generated an 8 per cent decline in total returns, while the FTSE Developed Index declined 16 per cent. The iEdge S-Reit Index maintained resilience with a 2 per cent decline in total returns, while the FTSE EPRA Nareit Developed Index (a benchmark for global Reits) declined 15 per cent.

For the quarter-to-date, Singapore stocks have seen S$1.05 billion of net institutional outflows, reducing the 2022 year-to-date (YTD) net institutional inflow to S$74 million.

The technology sector has continued to weigh on global stocks, with hospitality and real estate also lagging. Banks, technology, and Reits have now booked the most net institutional outflows across the sectors in 2022 YTD. In the YTD, STI’s total returns have maintained at 1 per cent and iEdge S-Reit Index has declined 0.8 per cent. The FTSE EPRA Nareit Developed Index declined 18 per cent in the YTD.

From an SGX Research market update last week, the 20 stocks among the most actively traded Singapore stocks that booked the highest net institutional inflows in the YTD proportionate to their current market capitalisation included 5 S-Reits. These 20 stocks averaged 22 per cent total returns in the YTD. The 5 S-Reits were Ascott Residence Trust, Suntec Reit, CapitaLand Integrated Commercial Trust, Frasers Hospitality Trust, and Keppel Reit. These 5 S-Reits averaged 18 per cent total returns in the YTD and saw combined net institutional inflows exceeding S$300 million.

Over the past 5 trading sessions through to Jun 23, institutional investors were net buyers of Singapore stocks with S$116 million of net inflows, following S$166 million in net outflows for the preceding 5 sessions. The top 5 stocks with the highest net institutional inflows were DBS, Singtel, CapitaLand Investment, Digital Core Reit and Hongkong Land.

Digital Core Reit in its Q1 2022 business update reported a 2 per cent increase in distributable income versus its IPO forecast. In April 2022, Digital Core Reit’s fifth-largest customer, a privately held IT service provider in Toronto, filed for bankruptcy protection. The Reit manager expects to be able to back-fill this capacity, given the tight market conditions in Toronto and updated that the customer event is not expected to impact distribution per unit.

In terms of director acquisitions over the past week, United Hampshire US Reit (UHReit) Management’s non-independent non-executive director David Tuvia Goss on Jun 20 and 22 acquired 500,000 units of UHReit : ODBU 0% at an average price of 60.9 US cents per unit.

UHReit is the first US grocery-anchored shopping centre and self-storage Reit to list in Singapore, and back in May reported Q1 2022 distributable income of US$8.1 million, 7.9 per cent higher than Q1 2021. UHReit completed its inaugural acquisitions of Colonial Square on Nov 12, 2021 and Penrose Plaza on Nov 24, 2021, with both acquisitions contributing positively to Q1 2022 distributable income.

REIT Watch is a weekly column on The Business Times, <a href="https://www.businesstimes.com.sg/companies-markets/five-s-reits-drawing-net-institutional-inflows-in-2022-year-to-date">read </a>the original version.
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    REIT Watch 27 Jun


In Q2 2022 to date, the Straits Times Index (STI) has generated an 8 per cent decline in total returns, while the FTSE Developed Index declined 16 per cent. The iEdge S-Reit Index maintained resilience with a 2 per cent decline in total returns, while the FTSE EPRA Nareit Developed Index (a benchmark for global Reits) declined 15 per cent.

For the quarter-to-date, Singapore stocks have seen S$1.05 billion of net institutional outflows, reducing the 2022 year-to-date (YTD) net institutional inflow to S$74 million.

The technology sector has continued to weigh on global stocks, with hospitality and real estate also lagging. Banks, technology, and Reits have now booked the most net institutional outflows across the sectors in 2022 YTD. In the YTD, STI’s total returns have maintained at 1 per cent and iEdge S-Reit Index has declined 0.8 per cent. The FTSE EPRA Nareit Developed Index declined 18 per cent in the YTD.

From an SGX Research market update last week, the 20 stocks among the most actively traded Singapore stocks that booked the highest net institutional inflows in the YTD proportionate to their current market capitalisation included 5 S-Reits. These 20 stocks averaged 22 per cent total returns in the YTD. The 5 S-Reits were Ascott Residence Trust, Suntec Reit, CapitaLand Integrated Commercial Trust, Frasers Hospitality Trust, and Keppel Reit. These 5 S-Reits averaged 18 per cent total returns in the YTD and saw combined net institutional inflows exceeding S$300 million.

Over the past 5 trading sessions through to Jun 23, institutional investors were net buyers of Singapore stocks with S$116 million of net inflows, following S$166 million in net outflows for the preceding 5 sessions. The top 5 stocks with the highest net institutional inflows were DBS, Singtel, CapitaLand Investment, Digital Core Reit and Hongkong Land.

Digital Core Reit in its Q1 2022 business update reported a 2 per cent increase in distributable income versus its IPO forecast. In April 2022, Digital Core Reit’s fifth-largest customer, a privately held IT service provider in Toronto, filed for bankruptcy protection. The Reit manager expects to be able to back-fill this capacity, given the tight market conditions in Toronto and updated that the customer event is not expected to impact distribution per unit.

In terms of director acquisitions over the past week, United Hampshire US Reit (UHReit) Management’s non-independent non-executive director David Tuvia Goss on Jun 20 and 22 acquired 500,000 units of UHReit : ODBU 0% at an average price of 60.9 US cents per unit.

UHReit is the first US grocery-anchored shopping centre and self-storage Reit to list in Singapore, and back in May reported Q1 2022 distributable income of US$8.1 million, 7.9 per cent higher than Q1 2021. UHReit completed its inaugural acquisitions of Colonial Square on Nov 12, 2021 and Penrose Plaza on Nov 24, 2021, with both acquisitions contributing positively to Q1 2022 distributable income.

REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - Five S-Reits drawing net institutional inflows in 2022 year to date

Singapore

United Hampshire US REIT operates as a real estate investment trust. The Company owns and operates shopping, storage, grocery, and necessity-based retail properties.

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United Hampshire US REIT (UHU SP)

Wee Ee Cheong boosts UOB stake

Inside Insights - Wee Ee Cheong boosts UOB stake For the 5 trading sessions that spanned Aug 19 to Aug 25, the Straits Times Index (STI) declined...

Singapore Exchange Ltd (SGX)

ASEAN Builder's Scoop (23Aug22) - FPL Establishes FP Capital to Find Capital Partners

UHU confident in refinancing short-term debt; More housing supply from PLAB relocation; DMCI Homes reports project updates; Phils BSP sees economy...

SCCM Asia Research

ASEAN Builder's Scoop (12Aug22) - ECWREIT Steady Top-Line Due to Master Leases

SASSR hit by weak variable income; CERT weakness in I&L reversions; IREIT low gearing opportunities; UHU occupancies trending up; PWON reached 44%...

SCCM Asia Research

ASEAN Builder's Scoop (25Jul22) - Private Home Prices and Rents Soar in 2Q22

AMO Residence >98% sold on launch day; Office rents +2.4% QoQ in 2Q22, retail rents remain subdued; Hotel room rates +63% YoY in Jun22; HDB resale...

SCCM Asia Research

REIT Watch - Five S-Reits drawing net institutional inflows in 2022 year to date

In Q2 2022 to date, the Straits Times Index (STI) has generated an 8 per cent decline in total returns, while the FTSE...

Singapore Exchange Ltd (SGX)

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52-week Range

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P/E

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