Market Snapshot
Singapore stocks opened lower on Wednesday. STI fell 0.3%, SIA fell 0.4%; Seatrium fell 1.3%.
Stocks to Watch
Best World : CGN: The beauty products distributor has raised its stake in British beauty company Pedal Pulses to 59.9 per cent from 50 per cent. In a bourse announcement on Tuesday, the company announced that it has entered into a sales and purchase agreement with Pedal Pulses’ shareholder Ian Richardson, for 116 shares at £0.01 each. Shares of Best World closed up 0.4 per cent or S$0.01 at S$2.51 before the announcement.
Hutchinson Port Holdings (HPH Trust) : P7VU: The port operator on Tuesday reported a 66.6 per cent increase in earnings for the first half of 2024 to HK$158.1 million (S$27.2 million), from HK$94.9 million in H1 2023. Despite the increase in earnings, distribution per unit for the period fell to HK$0.05, from HK$0.055 in H1 2023, on a lower distribution amount. Units of HPH Trust closed up 0.8 per cent or US$0.001 at US$0.129 on Tuesday.
Sabana : M1GU: Real Estate Investment Trust: BTOU: The Reit posted a distribution per unit of S$0.0134 for the first half of its fiscal year ended Jun 30, down 16.8 per cent from S$0.0161 in the corresponding year-ago period, its manager announced on Tuesday. Gross revenue for H1 slipped 0.2 per cent on year to S$55.2 million from S$55.3 million, even as its overall portfolio occupancy slid to 78.8 per cent. Units of Sabana Reit closed S$0.005 or 1.5 per cent higher at S$0.34 on Tuesday.
Manulife US Real Estate Investment Trust (Reit) : BTOU: The trust on Wednesday urged unitholders who have not provided valid US tax documentation to do so on time. The Reit said it would otherwise have to bear the withholding tax burden, based on the interest income of unitholders who do not submit their forms on time. This would adversely affect the trust’s retained income. Units of Manulife US Reit ended 2.5 per cent or US$0.002 lower at US$0.079 on Tuesday.
Elite UK Real Estate Investment Trust (Reit) : MXNU: BTOU: The real estate investment trust’s wholly owned subsidiaries have entered into an agreement for a 39-month term and revolving facilities of up to £80 million (S$138.9 million). The facilities will be used to refinance the Reit’s existing borrowings. Units of the Reit closed 2 per cent or £0.005 lower at £0.245 on Tuesday, before the announcement.
SG Local News
Singapore Core Inflation Slows to 2.9% First Time Since 2022
Singapore’s core inflation decelerated more than expected in June, allowing the central bank room to focus on shielding the trade-reliant economy from global shocks.
Core prices, which exclude private transport and accommodation costs came in at 2.9% in June from a year ago, according to a statement from the Monetary Authority of Singapore and the Ministry of Trade and Industry on Tuesday. The reading — a level last seen in March 2022 — was slower than the 3% median estimate in a Bloomberg survey of economists.
The all-items inflation slowed to 2.4% after printing 3.1% in May. The deceleration was driven by softer gains in private transport and healthcare costs. On a month-on-month basis, the headline measure fell 0.2% from 0.7% increase in the prior month.
GIC Posts 3.9% 20-Year Annualised Real Rate of Return, Expects Lower Returns Ahead
SINGAPORE’S sovereign wealth fund GIC reported an annualised rolling 20-year real rate of return of 3.9 per cent for its latest period ended Mar 31, 2024.
This rate of return – which accounts for inflation and spans the 20-year period from April 2004 to March 2024 – is down 0.7 percentage point from 4.6 per cent the previous year, GIC said on Wednesday (Jul 24).
“The profound uncertainty we face is likely to continue to weigh on returns. Amid this volatility, we must play to our strengths and seize new opportunities,” said Lim Chow Kiat, chief executive of the sovereign wealth fund.
Pfizer Invests $743 Million to Expand Facility in Singapore
Pfizer Inc. has invested S$1 billion ($743 million) to expand its automated active pharmaceutical ingredient manufacturing facility in Singapore.
The pharma giant seeks to create over 250 new highly skilled jobs, adding to the existing workforce of several hundred staff in the city-state, the company said in a statement on the Singapore Economic Development Board website on Tuesday.
Singapore’s GIC Reports Smallest Exposure to Asia Since 2010
Singapore’s giant sovereign wealth fund GIC Pte. reported its lowest Asian exposure in more than a decade, with its US and Europe assets on the rise, according to its latest annual report.
Around 26% of GIC’s investment portfolio was in Asia as of the end of March, compared with 39% in the US alone, according to the report released on Wednesday. Its holdings in Japan — whose equity market has soared — continued their steady decline, and now make up just 4% of the firm’s assets.
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