SG Morning Call | Singapore Stocks Open Higher on Monday; STI Rises 0.87%; Keppel DC Reit up 1.9%; OCBC Bank up 1.3%

Market Snapshot

Singapore stocks opened higher on Monday. STI rose 0.87%; Keppel DC Reit up 1.9%; OCBC Bank up 1.3%; CapLand India T up 1%.

Stocks to Watch

$DBS(D05.SI)$: The bank announced on Monday that it acquired an additional stake in Shenzhen Rural Commercial Bank, increasing its stake from 16.7 per cent to 19.4 per cent. This investment expands its exposure to China’s greater bay area. DBS said the move will be funded using internal cash resources and will have a minimal impact on the consolidated capital ratios of DBS Group Holdings and its subsidiaries. It is expected to be immediately accretive to earnings and return on equity. Shares of DBS closed up 0.2 per cent or S$0.09 at S$43.60 on Monday, following the announcement.

$Keppel Real Estate Investment Trust(K71U.SI)$ (Reit) : The Reit’s distribution per unit (DPU) fell 3.4 per cent to S$0.028 for its second half ended Dec, 2024,  from the corresponding year-ago period, its manager said. It will be paid on Mar 17, after the ex date on Feb 5 and record date on Feb 6. This decline in DPU comes despite revenue growing 15.5 per cent to S$136.5 million and net property income rising 13.6 per cent to S$105.1 million. While property income grew, distributable income from operations fell 2.1 per cent to S$97.6 million on higher borrowing costs and lower rental support. Units of Keppel Reit ended down 1.1 per cent or S$0.01 at S$0.86, before the announcement.

$CapitaLand India Trust(CY6U.SI)$ (Clint): It posted a 3 per cent rise in DPU to S$0.032 for the second half ended December 2024 from the year-ago period, bringing full-year DPU up 6 per cent at S$0.0684, said Clint’s trustee-manager on Monday. This growth was due to higher rental income from existing properties, contributions from recent acquisitions, and income from three assets acquired in 2023. Units of the trust closed flat at S$1.04 on Monday.

$Aims Apac Reit(O5RU.SI)$ (AA Reit): The manager posted a 1.1 per cent increase in DPU to S$0.0707 for the nine months ended Dec 31, 2024, from S$0.0699 in the same period the previous year. Revenue climbed 5.7 per cent to S$139.1 million from S$131.6 million in the same period the prior year. Units of AA Reit ended Monday flat at S$1.27.

$Cordlife(P8A.SI)$: Its nominating committee and board of directors will continue to monitor and re-assess the suitability of the continued appointment of Thet Hnin Yi as chief financial officer. Thet has been under investigation by the Commercial Affairs Department since March 2024. She was arrested in connection with potential breaches of disclosure obligations related to irregular temperatures of a certain cryogenic storage tank. Shares of Cordlife ended Monday 4.9 per cent or S$0.008 lower at S$0.155, before the news.

SG Local News

Lawrence Wong Warns of Uncertainty, Calls for Unity in First CNY Message as Prime Minister

With Singapore’s economy ending the previous zodiac year “on a high note”, the country enters the Year of the Snake with “anticipation and hope”, Prime Minister Lawrence Wong said in his first Chinese New Year message since taking office in May 2024.

“Our economy performed strongly,” he said on Tuesday (Jan 28). “Inflation subsided. Unemployment remained low. Many Singaporeans enjoyed higher wage increases.”

The economy grew 4 per cent in 2024, accelerating from 1.1 per cent the year before, based on advance estimates released on Jan 2. For 2025, full-year growth is expected to slow to between 1 and 3 per cent.

Demand Falls for Latest Singapore Savings Bond with 10-Year Average Return of 2.82%

The latest Singapore Savings Bond (SSB) allotted on Monday (Jan 27) saw a fall in applications to less than half of the amount offered, as the 10-year average return slipped from the earlier tranche.

The February tranche of the Singapore government-backed bonds received a total of S$236.5 million in applications for the S$500 million that was offered. A total of S$223.1 million was applied within individual allotment limits, and this amount was fully allotted.

In comparison, the January issuance received S$326.3 million in applications for the S$600 million on offer.

Singapore-Listed US Office Reits Soar on Trump’s Return to Office Mandate

SINGAPORE-LISTED office real estate investment trusts (S-Reits) have surged in the past week, after US President Donald Trump signed an executive order mandating federal employees to return to in-person work.

As at last Friday’s (Jan 24) close, the trio of US office Reits recorded a strong weekly gain of more than 10 per cent. $Keppel Pacific Oak US Reit(CMOU.SI)$ surged 16.3 per cent to US$0.25 a unit; $Manulife US Reit(BTOU.SI)$ gained 12.6 per cent to US$0.098 a unit; and $Prime US Reit(OXMU.SI0$ advanced 10.7 per cent to US$0.186 a unit.