To The Moon

Singapore shares rallied this week, with the $STI(STI.SI)$ up 0.04% in the last five trading days. $SGX(S68.SI)$ rose 12% this week, $YZJ Shipbldg SGD(BS6.SI)$ rose 6%; $Delta TH SDR 1to1(TDED.SI)$ fell 12.4%, $Sri Trang Gloves(STG.SI)$ fell 11.2%.

Market News

Singapore Exchange's Business Momentum Still Looks Solid

$SGX(S68.SI)$'s business momentum continues to look solid, OCBC Investment Research says in a note. The stock-exchange operator's market statistics for October showed the derivatives daily average volume surging 48% on year to a record, the team notes. SGX's securities business also posted robust growth in October, with market turnover value climbing 36% on year, the team says. Given the continued solid business momentum, OCBC expects improved economies of scale and lifts its FY 2025 core EPS forecast for SGX by 3.3%. It also raises the stock's fair-value estimate to S$12.21 from S$10.76, with an unchanged hold rating.

Sea Stock Soars 13% This Week

In a remarkable display of resilience, $Sea Ltd(SE)$'s stock surged to a 52-week high on Thursday, reaching a price level of $117.52. This significant milestone underscores the company's robust performance and investor confidence, marking a substantial turnaround from its previous positions. The stock rose 13% this week.

Analysts from Phillip Securities, TD Cowen, Morgan Stanley, and Barclays have all adjusted their price targets for Sea Ltd. Phillip Securities downgraded the stock from Neutral to Reduce, despite raising the price target to $100 from $80. TD Cowen, Morgan Stanley, and Barclays all raised their targets, with the latter two firms setting their targets at $131.

Grab Stock Soars 20% This Week

$Grab Holdings(GRAB)$'s stock surged to a 52-week high on Thursday, reaching a price level of $5.72. The stock rose 20% this week.

Mizuho Securities reaffirmed an Outperform rating and raised its price target to $6.00, emphasizing Grab's steady market expansion. Meanwhile, Evercore ISI nudged its price target for Grab Holdings to $8.00 following the company's robust third-quarter earnings.

Singapore stocks to benefit from MAS reforms next year, Morgan Stanley says

South-east Asia’s top-performing stock market in 2024 is likely to continue its momentum into 2025 as Singapore unveils measures to revive its stock market, according to analysts at Morgan Stanley.

Analysts are bullish on the overlooked market in the near term, citing the Monetary Authority of Singapore’s (MAS) efforts to boost stock markets and the US election uncertainty favouring defensive positioning.

In August, MAS said it had formed a review group to recommend steps to strengthen the development of the equities market in the Republic, which hosts more than US$4 trillion (S$5.4 trillion) of assets under management.

Singapore Home-Buying Frenzy Defies Government Push to Cool Boom

Singapore’s housing market is heating up again after a blockbuster month, posing a fresh challenge for authorities trying to dampen a buying frenzy.

Builders are set to sell more than 1,900 private units in November, making it the best month for new home sales in over a decade, according to preliminary data tabulated from the Urban Redevelopment Authority and realtors.

It’s the latest sign that one of the world’s most irrepressible and expensive real estate markets is bouncing back to life, having withstood multiple cooling measures, elevated interest rates and an economic slowdown. But the property fever is a headache for the government, which must call an election within a year against a backdrop of voter concerns over the cost of living, especially housing affordability.

CapitaLand Warns of China Losses as Singapore Property Investor Cuts Exposure

CapitaLand Investment Ltd., one of Asia’s largest property investment managers, warned of potential losses as it seeks to extricate itself from China’s real estate crisis.

The Singapore-based firm wants to reduce its exposure in the world’s second-largest economy to 10-20% of its expected S$200 billion ($149 billion) in funds under management by 2028, it said in an investor day presentation Friday.

In doing so, the company may incur “potential fair value or divestment losses” that impact near-medium term non-operating earnings, it said. Its current exposure to China is 27% of its S$113 billion in funds.

Singapore Tenants May Have the Upper Hand in 2025

Morgan Stanley said it opened its new Southeast Asia headquarters in Singapore's swanky downtown business district this week.

An expanding list of global investors and financial institutions have flocked to Singapore, lured by low taxes, political stability and the city-state's location as a gateway to Southeast Asian markets.