Weekly | Why DFI Retail Group Lead the Market this Week?

SGX_Stars
10-25

As of the close on Friday, $Straits Times Index(STI.SI)$ closed at 3,593.41 points, down 1.29% points last week.

During the last 5 trading days, $DFIRG USD(D01.SI)$, $SATS LTD.(S58.SI)$, $Keppel DC Reit(AJBU.SI)$, $IHH(Q0F.SI)$ and $Bumitama Agri(P8Z.SI)$ are the top 5 weekly gainers, up 7.76%, 6.93%, 4.89%, 4.11% and 4.00% respectively.

$Mapletree PanAsia Com Tr(N2IU.SI)$, $NIO Inc.(NIO.SI)$, $OUEREIT(TS0U.SI)$, $Gulf TH SDR(TGED.SI)$ and $AIS TH SDR(TADD.SI)$ are top 5 decliners of SGX stocks which market capital above S$1 Bln.

Below are key analyses of the TOP 5 gainers:

1. $DFIRG USD(D01.SI)$

  • The company's recent announcement of a dividend payout earlier in October may have contributed to increased interest from dividend-focused investors, bolstering demand for its shares.

  • Additionally, recent restructuring activities, like property divestitures and executive changes, have helped streamline its operations, potentially signaling a renewed focus on core retail activities in the Asia region​.

  • Analysts also note that there may be a perceived value in the company as its stock trades below what some estimates consider its intrinsic value, drawing more investors looking for undervalued stocks on the SGX.

2. $SATS LTD.(S58.SI)$

  • SATS Ltd. has seen a significant stock price rise this week, climbing about 7% on heightened trading volume. This boost followed the release of its positive Q2 FY2024 earnings, which indicated a stronger performance and recovery in its core aviation and food solutions services, reflecting improving travel demand and economic conditions.

  • This financial growth was well-received by investors, as SATS has benefited from easing travel restrictions and increased air travel, especially in the Asia-Pacific region.

  • Furthermore, analyst coverage remains positive, with firms like OCBC and UOB Kay Hian maintaining strong target prices for SATS as they expect the company's performance to improve further alongside rising demand in the airline and hospitality sectors.

3. $Keppel DC Reit(AJBU.SI)$

  • Keppel DC REIT has seen an uptick this week, mainly driven by renewed interest in data centers as a resilient asset class and favorable analyst support.

  • A recent report by J.P. Morgan reaffirmed its "Buy" rating on the REIT, with a price target set at SGD 2.50, citing its strong fundamentals and growth potential in the digital infrastructure space.

  • Similarly, DBS has expressed continued optimism, maintaining a target price of SGD 2.20​.

  • Keppel DC REIT’s stable income-generating data centers and high occupancy rate are attractive to investors seeking steady yields. Given the surge in demand for data center services, Keppel DC REIT’s consistent performance and robust yield appeal are helping it outperform the broader market.

4. $IHH(Q0F.SI)$

  • IHH Healthcare Berhad saw a rise in its stock price recently due to a significant change in its shareholder structure, with a major shareholder increasing their stake. This boost in investor confidence was further supported by IHH’s performance in key markets and improved investor sentiment around its future growth potential in healthcare services across Asia, particularly in light of rising healthcare demand post-pandemic.

  • Additionally, IHH Healthcare’s position as a top regional healthcare provider has garnered strong analyst support, contributing to the stock’s upward movement this week

5. $Bumitama Agri(P8Z.SI)$

  • Bumitama Agri Ltd. stock rose recently due to improved market sentiment toward palm oil producers and a positive outlook on agricultural commodities. There has been increased demand for palm oil, partly driven by higher food prices and the global interest in biofuels, which supports the prices of products like crude palm oil.

  • Investors are also attracted to Bumitama Agri's strong fundamentals, such as its stable production capacity and strategic operations in Indonesia, where the company operates extensive oil palm plantations and mills​.

  • These favorable conditions in the agricultural sector have bolstered confidence in Bumitama’s potential growth, pushing the stock price upward.


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  • KSR
    10-27
    KSR
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