Frasers Cpt Tr    Last:2.27    +0.01

Frasers Cpt Tr

Seriously? Nobody believe in this diamond REIT, rather invest in one Sungei Road REIT?
 

FCT eyes relaxed Covid restrictions to bring shoppers back as retail rental reversion dips

 

Frasers Centrepoint Trust posts 39.3% rise in H2 DPU at S$0.06089

FRASERS Centrepoint Trust' s (FCT)    distribution per unit (DPU) rose by 39.3 per cent to 6.089 Singapore cents for the second half of the year ended September, from 4.372 cents for the same period a year ago.

Gross revenue was up 159.9 per cent to S$167.5 million for the half-year period, from S$64.5 million in the previous year.

The improved full-year financial performance is attributed to the acquisition of its remaining 63.1 per cent stake in AsiaRetail Fund and lower rental rebates granted to tenants this year, FCT' s manager said in a bourse filing on Wednesday (Oct 27).

Net property income (NPI) grew 213.2 per cent on year to S$120.9 million for the half year, from S$38.6 million.

Distributable income rose 243.9 per cent on year to S$103.6 million, from S$30.1 million.

The distribution ($0.06089) will be paid out on Nov 29, 2021, after books closure on Nov 5, 2021 at 5 pm

 

 

PRESS RELEASE-- FCT reports DPU of 12.085 Singapore cents for FY2021  FY2021 performance boosted by the acquisition of the remaining 63.11% stake in AsiaRetail Fund Limited (the ?ARF Acquisition?)  Healthy financial position with gearing at 33.3%  Portfolio occupancy remained resilient at 97.3% and tenants? sales between July 2021 and September 2021 was approximately 93% to 98% of the pre-COVID levels... https://links.sgx.com/1.0.0/corporate-announcements/MTBXY4Q98RIXTJLM/688183_FCT_Press_Release.pdf

 

The current share price levels for the Singapore REIT (S-REIT) sector presents an &ldquo opportunity&rdquo for investors to re-enter, say DBS Group Research analysts Derek Tan, Rachel Tan, Dale Lai and Geraldine Wong on Aug 30.

On the back of the US Federal Reserve chairman Jeremy Powell&rsquo s broad messaging that the US central bank will &ldquo stay the course&rdquo as opposed to being early in its expected taper programme in the 2HFY2021.

On this, the team sees a &ldquo more patient&rdquo FED to be conducive for S-REITs to re-rate, with a rate hike some time away.
&ldquo Taking the cue from the last rate hike normalisation in 2HFY2013-2018, a 1.5 years difference between &ldquo taper signal&rdquo to the first rate hike will imply the first hike will likely be in 2023,&rdquo they write.

As such, the analysts say they &ldquo see sufficient buffer and S-REITs to find its ground post pandemic before addressing interest rate risks and thus recommend investors to take the recent share price weakness to add&rdquo .

To the team, FY2021 and FY2022 yields for S-REITs are attractive at 5.5% and 6.0% respectively. The figures imply that yield spreads against the SG 10-year bond are close to -1 standard deviation (s.d.) at 4.0% to 4.5%.

Furthermore, the potential inclusion of some S-REITs in the FTSE EPRA Nareit Developed Asia Index has brought about more visibility for the sector. This is due to the wider representation of Singapore in major property indices, note the analysts.

As it is, selected mid-cap S-REITs have already attracted incremental inflows due to their possible inclusion into the index.

From now, the analysts say they expect the overall sector to &ldquo build its base from now on&rdquo .

&ldquo We remain optimistic that the S-REITs can continue to ride on the gradual re-opening of the Singapore economy and maintain our view that the robust earnings growth projections in 2HFY2021-2022 to drive a re-rating for the S-REITs,&rdquo they write.

&ldquo We prefer selected retail and office S-REITs (Mapletree Commercial Trust, Suntec REIT, Frasers Centrepoint Trust, Lendlease Global Commercial REIT) and industrial S-REITs for its robust growth trajectories (Mapletree Logistics Trust, Mapletree Industrial Trust, Frasers Logistics & Commercial Trust, ARA LOGOS Logistics Trust and ESR-REIT). Amongst hotels, we prefer global diversified names like CDL Hospitality Trusts.

 

Last:2.39        +0.05
congrats to those who purchased at at Low $2.3
gd luck dyodd
 

ozone2002      ( Date: 11-Aug-2021 10:48) Posted: Last:2.4        -0.01 Resilient divy play at 5% based on 12 c divy technicals oversold, high $2.3x or below $2.4 is gd entry level for positioning to ride the move up gd luck dyodd

 

10 S-Reits yielding long-term annualised returns  based on 10 YEAR Annualised Total Returns  (%)
Mapletree Industrial Trust   10 Yrs ATR =   16.7 %
Mapletree Logistics Trust    10 Yrs ATR =  16 %
Mapletree Commercial Trust.  10 Yrs ATR =    15.8%
ParkwayLife Reit   10 Yrs ATR =  15%
Aims Apac Reit  10 Yrs ATR =  12.9%
Ascendas India Trust  10 Yrs ATR =  11.8%
Frasers Centrepoint Trust.  10 Yrs ATR =  10.8%
Ascendas Reit.    10 Yrs ATR =  10.4%
Ara Logos Logistics Trust      10 Yrs ATR =  8.0%
ESR-Reit.   10 Yrs ATR =    7.9%



 

 

I am surprised nobody posted these

10 S-Reits yielding long-term annualised returns

THE 10 best performing S-Reits and property trusts with over a 10-year listing history have averaged 12.5 per cent in 10-year annualised total returns. On an absolute basis across the 10-year period, these 10 trusts have generated total returns averaging 240 per cent as Reits continue to be an asset class of choice for the longer horizon.

Comparatively, the 10 have also outperformed major Asia-Pacific Reit markets which have yielded 10.3 per cent in average total returns for the same period.

Of the 10, the top five trusts Mapletree Industrial Trust  Mapletree Ind Tr: ME8U -0.68%  , Mapletree Logistics Trust  Mapletree Log Tr: M44U -0.98%  , Mapletree Commercial Trust  Mapletree Com Tr: N2IU -2.4%  , ParkwayLife Reit  ParkwayLife Reit: C2PU -1.22%  and Aims Apac Reit  AIMS APAC Reit: O5RU -0.64%  , were also among Asia-Pacific' s 20 best performing Reits with a longer trading history.

Three of these are S-Reits sponsored by Mapletree Investments, which owns and manages over S$66 billion of data centre, industrial, lodging, logistics, mixed-use, multifamily, office, residential and retail properties.

Mapletree Industrial Trust (MINT) listed in October 2010 with an initial investment portfolio of 70 Singapore industrial properties valued at S$2.1 billion including business parks, flatted factories, stack-up/ramp-up buildings and light industrial buildings.
Today, the trust has tripled in portfolio with assets under management of S$6.7 billion across 114 properties in Singapore and North America. In terms of asset mix, MINT has also diversified with acquisitions into high-tech buildings and data centres making up 20.9 per cent and 39.8 per cent respectively. Its latest acquisition of 29 data centres in the United States makes it one of the largest owners of data centres among Asia-Pacific Reits.

Mapletree Logistics Trust (MLT) was one of the first Mapletree Group S-Reits to be listed in July 2005 and was the first Asia-focused logistics Reit. Its portfolio of properties has swelled from 15 properties worth S$422 million to 163 properties worth S$10.7 billion across nine countries in the Asia-Pacific.

MLT now has a diversified tenant base of 752 customers with close to 75 per cent of its portfolio serving consumer-related sectors.

Mapletree Commercial Trust (MCT) listed in April 2011 with three properties located in Singapore valued at S$2.8 billion. Its enlarged portfolio value has since trebled and comprises five Singapore properties worth S$8.7 billion.

ParkwayLife Reit (PLife) listed in August 2007 with just three properties in Singapore - Mount Elizabeth Hospital, Gleneagles Hospital and East Shore Hospital with a combined value of S$775 million. Fourteen years on, it has almost trebled its portfolio value at S$1.99 billion across 53 properties in Singapore, Japan and Malaysia and considers itself to be one of the largest listed healthcare Reits in Asia.

PLife recently completed its third strategic recycling initiative with a divestment of a non-core asset and acquired two nursing homes in Japan, increasing its geographical coverage and further diversification of age-care tenants.

Some may remember Aims Apac Reit as MacarthurCook Industrial Reit which listed in April 2007 with a portfolio of 12 industrial properties in Singapore valued at S$316 million.

The Reit has since rebranded itself in 2019 and has grown over five times in size with a portfolio value of S$1.7 billion across 28 properties in Singapore and Australia.

Its tenant base of 188 tenants has also diversified across the years, and include resilient sectors such as logistics and warehouses, bio-medical and life science, telecommunications and data centre operators accounting for seven out of its top 10 tenants. SGX RES

 

 

 

' Buy' A-REIT and FCT on gathering pace of economic recovery

Analysts from PhillipCapital and UOB Kay Hian are remaining positive on the Singapore REITs (S-REITs) sector as the economic recovery gathers pace.

PhillipCapital analyst Natalie Ong is keeping her " overweight" call on the Singapore REITs (S-REITs) sector as its recovery is still ongoing.

The FTSE REIT Index' s recovery lagged the Straits Times Index (STI) and the FTSE Real Estate Developer Index year-to-date (y-t-d), notes Ong in an Aug 24 report.

Across the board, leasing in the sector remains challenging although it is seeing improvements q-o-q. S-REITs, in general, have been active in transactions, with many of them picking up new assets over the last six months.

" Portfolio reconstitution should keep portfolios future-ready while disbursements of divestment gains and contributions from acquisitions could help DPUs recover faster," Ong suggests.

Several S-REITs are also exploring redevelopment and asset enhancement initiatives (AEIs), which should result in faster distribution per unit (DPU) growth later on.

Re-rating catalysts for the S-REIT sector include a pick-up in the Singapore economy as well as portfolio reconstitutions, she says.

The REITs under PhillipCapital' s coverage are expected to deliver DPU yields of 3.9-7.9% in the FY2021.

Among the sub-sectors - office, industrial, retail and hospitality - Ong has indicated her preference for industrial and retail.

The industrial sub sector has seen rents and occupancy rates improving for the fifth consecutive quarter. Occupancy stood 0.1 percentage points higher q-o-q at 90.1% on average lifted by factory occupancies. Industrial rents grew 0.5 percentage points y-o-y and 0.3 percentage points q-o-q with improvements in factory and warehouse rents.

The retail market is also finding its footing, adds Ong. Year-to-June net absorptions were 12,000 sqm were higher than 2020' s -72,000 sq m net absorptions, she notes.

Occupancy stood the same q-o-q, while the rental index declined by 0.5%.

That said, retail REITs have reported an improvement in signing rents with reversions " less negative" than that of the preceding quarter.

To this end, Ong has identified her top picks as Frasers Centrepoint Trust (FCT) and Ascendas REIT (A-REIT).

She has given them " buy" calls with target prices of $2.87 for FCT and $3.65 for A-REIT.

UOB Kay Hian analyst Jonathan Koh has, too, kept " overweight" on the S-REIT sector as the economy is expected to gather pace with the acceleration of the Covid-19 vaccination rates in Singapore and many developed countries.

However, Koh predicts that the sector may experience a " mild correction" prior to the onset of the quantitative easing (QE) taper, although total return and relative performance should turn positive, he says in an Aug 27 report.

" S-REITs could potentially suffer moderate negative total return prior to the onset of a QE taper in 2H2021. However, there is no indication that S-REITs would incur negative total return or underperform the broader market during tapering and immediately after the tapering," he writes.

The Fed has conducted QE twice so far. The first instance took place in three rounds, which lasted between 2008 to 2013 during the aftermath of the Global Financial Crisis (GFC). The second instance occurred during the ongoing Covid-19 pandemic that began in March 2020.

Before the commencement of QE1, the FTSE ST All-share REITs Index incurred a total negative return of 3.3% during the three-month period. S-REITs provided a total positive return of 16.1% and outperformed the MSCI Singapore by 9.7% during the process of tapering in 2H2013 and 2014, he notes.

S-REITs also provided a positive total return of 7% during the three-month period after the cessation of QE3.

This time, the Fed could push for an earlier start for QE tapering, as some FOMC participants have requested for it in late 2021.

Hikes in the Fed Funds Rate could commence as early as mid-2022, says Koh.

Fed chairman Jerome Powell, in December 2020, promised to indicate " well in advance" of any decision for a QE taper.

In his report, Koh has recommended investors have a " balanced mix" of new economy and re-opening plays. New economy plays include ARA LOGOS Logistics Trust, A-REIT, Frasers Logistics Trust (FLT) and Mapletree Industrial Trust (MINT). Re-opening plays include FCT and Lendlease Commercial Global REIT (LREIT).

Koh has recommended " buy" on all six S-REITs, with target prices of $1.02 (ARA LOGOS), $3.83 (A-REIT), $1.79 (FLT), $3.63 (MINT), $3.06 (FCT) and $1.01 (LREIT).

Sector catalysts include the normalisation in economic activities and GDP growth on the back of a higher number of Singapore' s population being fully vaccinated in September.

 

Can go below $2.30 again. The numbers are weak. Retails are weak. Tourists are weak. Buying willingness are weak. Orchard is weak.

vested.

 

Q at 2.35 😅

ozone2002      ( Date: 11-Aug-2021 10:48) Posted: Last:2.4        -0.01 Resilient divy play at 5% based on 12 c divy technicals oversold, high $2.3x or below $2.4 is gd entry level for positioning to ride the move up gd luck dyodd

 

Last:2.4        -0.01
Resilient divy play at 5% based on 12 c divy
technicals oversold, high $2.3x or below $2.4 is gd entry level for positioning to ride the move up
gd luck dyodd
 

 

Analysts mixed on FCT' s performance after 3Q21 update

Analysts from CGS-CIMB Research, PhillipCapital, RHB Group Research and UOB Kay Hian are mixed on Frasers Centrepoint Trust (FCT) after the release of its 3QFY2021 business update on July 22.

For the 3QFY2021, FCT saw shopper traffic fall to around 60% of pre-Covid-19 levels during the Phase 2 (Heightened Alert) measures from May to June.

During the period, it also reported stable occupancy at 96.4% with a weighted average lease expiry (WALE) of 1.62 years by net lettable area (NLA).

CGS-CIMB' s Eing Kar Mei and Lock Mun Yee have kept " add" on the REIT with a higher target price of $2.91 from $2.87 previously.

They have kept their distribution per unit (DPU) forecasts for the FY2021 to FY2023 as well.

To Eing and Lock, FCT, with its healthy gearing of 33.9% and large debt headroom, is ready for any suitable acquisition when it comes along.

" While Central Plaza (the only office asset in the portfolio) forms an immediate catchment for Tiong Bahru Plaza, we think a Central Plaza divestment could happen with the right offer," the analysts write in a July 23 report.

To be sure, " we continue to expect FCT to outperform its peers in operating metrics given its pure focus on suburban malls," they add.

Re-rating catalysts include accretive acquisitions and better-than-expected rental reversions while downside risks include more Covid-19 restrictions.

PhillipCapital' s Natalie Ong has also maintained " buy" on the REIT albeit with a lower target price of $2.87 from $2.88.

She has also reduced her DPU estimate for the FY2021 by 7.5% after accounting for the $25,000 in rental rebates for tenants over May to August.

To Ong, FCT is underappreciated by investors for its suburban retail assets and with 45% of its tenants in essential services such as supermarkets.

The REIT, according to Ong' s estimates, currently trades at 5.1%, 5.8% yields for the FY2021 and FY2022 respectively.

" Sustained reopening visibility will support leasing and rental growth, in our view. FCT' s portfolio of well-located suburban malls are expected to draw a disproportionate share of leasing demand," she writes.

Catalysts include asset enhancement initiatives (AEIs), acquisitions from its sponsor' s pipeline of assets, increasing its stake in Waterway Point or acquiring or partnering companies with only one mall in its portfolio.

UOB Kay Hian' s Jonathan Koh has kept " buy" on FCT with an unchanged target price of $3.06.

He has also maintained his existing DPU forecast.

Koh remains positive on FCT for its defensive distribution yield of 5.5% for the FY2022, its well-located suburban malls that is close to dense population catchments.

FCT' s malls also cater to essential services and non-discretionary spending, he notes.

To him, the re-introduction of the Phase 2 (Heightened Alert) measures is only a temporary setback for the REIT.

FCT is also ready to act on its next acquisition when the opportunity next presents itself as it has the financial capacity to do so.

A catalyst identified by Koh is a gradual but steady recovery in shopper traffic and tenant sales, accompanied by the progressive easing of social distancing measures.

The acquisition of Northpoint City South Wing from its sponsor Frasers Property could also be another catalyst for the counter.

RHB' s Vijay Natarajan is the only analyst to maintain his " neutral" call on the REIT. Natarajan has also kept his target price of $2.40 unchanged.

While he views the REIT' s 3QFY2021 metrics as " stable" , he views its near-term outlook as " challenged" with Singapore returning to the tightened measures till August.

He has also cut his DPU estimate by 3% for the FY2021, factoring in rental rebates.

" With acquisition-led growth priced in and more negative news flow expected on the retail sector, we see no strong share price catalysts," he writes.

" FCT' s valuation is fair at 1.1 times price-to-book value (P/BV)," he adds.

FCT' s gearing is currently the lowest among the large-cap S-REITs, notes Natarajan.

He also expects Central Plaza &ndash currently the only office asset in its portfolio &ndash as a possible candidate for divestment.

On acquisitions, Natarajan believes Waterway Point and Northpoint City South Wing " could have potential for injection into the REIT" .

Units in FCT closed 2 cents lower or 0.8% down at $2.36 on July 26, or 1.02 P/NAV, according to PhillipCapital' s estimates.

 

 

 

Frasers Centrepoint Trust saw shopper traffic fall in 3QFY21, occupancy stable at 96.4%

With the implementation of Phase 2 (Heightened Alert) measures in May and June, Frasers Centrepoint Trust (FCT) shopper traffic fell to around 60% of pre-Covid-19 levels. 

That said, FCT' s retail portfolio occupancy is stable at 96.4%,says Frasers Centrepoint Asset Management, the manager of FCT, in its business updates for 3QFY2021 ended June. 

FCT' s portfolio comprises Causeway Point, Northpoint City North Wing (incl. Yishun 10), Waterway Point, Changi City Point, Tampines 1, Tiong Bahru Plaza, Century Square, Hougang Mall, Whitesands and Central Plaza, an office space.

FCT completed the divestment of Yew Tee Point on May 28, 2021.

Portfolio tenants' sales nudged back to around pre-Covid-19 levels despite tightened measures during Phase 2 (HA), and performance was underpinned by the resilience of FCT' s portfolio of suburban malls, says FCT. Tenants sales grew 115.2% y-o-y, though this was from a low base during the circuit breaker last year. 

FCT' s gearing level at 33.9%, compared to 35.0% as at June 30, 2020 and the REIT is in " strong financial position with ample debt headroom to support future growth" , it says. 

FCT reported an average debt maturity of 2.8 years as at June 30, 2021, up from 2.3 years this time last year.

FCT reported total borrowings of $1,865.5 million, of which 55.3% were in secured debt, 28.6% in unsecured debt and 16.1% in FCT' s two medium-term notes.

In addition, FCT renewed substantial expiring leases due in FY2021, and only 8% of its leases remain for renewal in 4QFY2021.

Weighted Average Lease Expiry (WALE) as at June 30, 2021 stands at 1.62 years by net lettable area (NLA), compared to 2QFY2021 WALE of 1.54 years.

Units in Frasers Centrepoint Trust closed 1 cent higher, or 0.42% up, at $2.41 on July 22

 

 

FCT, KReit, MCT among safer Reit options amid return to Heightened Alert

Frasers Centrepoint Trust (FCT), Keppel Reit (KReit) and Mapletree Commercial Trust (MCT) are among the preferred Singapore real estate investment trust (S-Reit) picks of DBS, as the country returns to Phase 2 (Heightened Alert) in a bid to control the spread of Covid-19.

The brokerage has also recommended several industrial Reits as " safe harbours" .

On Tuesday, Singapore' s Covid-19 taskforce reinstated a ban on dining at food and beverage outlets. These F& B players will only be allowed to offer takeaways and deliveries.

Social gatherings outside the home will also be limited to group sizes of two people. These new restrictions will last for about a month.

DBS expects the restrictions will lead to a 6 to 10 per cent cut in earnings estimates for retail Reits, which may have to grant rental rebates to their F& B tenants.

" With restaurants now possibly facing up to two months of not having dine-in customers, we fear that some restaurants may be forced to throw in the towel," the brokerage said in a report dated Wednesday.

But DBS continues to like FCT, which is exposed to the " more resilient essential tenant trades" . Most of FCT' s malls are located in the suburban parts of Singapore, and tend to be frequented by shoppers in need of groceries or other essentials.

DBS has a " buy" call on FCT and a target price of S$3, which is 25 per cent above the trust' s close on Wednesday at S$2.40.

Meanwhile, an extension of the current work-from-home arrangements could affect office leasing momentum.

But DBS is positive on the outlook for KReit and MCT as it sees them as " better positioned to attract new economy tech firms" .

It has " buy" calls on both with target prices of S$1.40 and S$2.25, respectively. Units of KReit closed Wednesday at S$1.19 while MCT closed at S$2.12.

Within the Reit space in general, DBS said industrial Reits have the " clearest growth trajectory" just now, as their tenants are least likely to be affected by Covid-related restrictions.

The brokerage sees warehouses and business parks leading the recovery, and it has " buy" calls on Mapletree Logistics Trust Mapletree Log Tr: M44U -0.48% (target price S$2.35, close on Wednesday S$2.08), Mapletree Industrial Trust Mapletree Ind Tr: ME8U +0.35% (target price S$3.25, close on Wednesday S$2.88), Ara Logos Logistics Trust ARA LOGOS Log Tr: K2LU -1.69% (target price S$0.85, close on Wednesday S$0.87) and Aims Apac Reit AIMS APAC Reit: O5RU +1.29% (target price S$1.60, close on Wednesday S$1.57).

DBS also highlighted the healthcare-focused Parkway Life Reit ParkwayLife Reit: C2PU -1.04% (PLife Reit) for its resilient earnings profile.

PLife Reit owns 53 healthcare-related properties, including three of Singapore' s largest private hospitals: Mount Elizabeth Hospital, Gleneagles Hospital and Parkway East Hospital.

The brokerage has a " buy" call on PLife Reit with a target price of S$5.75, reflecting upside potential of 21.3 per cent from the close on Wednesday at S$4.74.

 

 

Defying gravity: Retail and office S-Reits with higher occupancy

In a previous publication of Reit Watch, we noted that the average occupancy rate of the sector (excluding hospitality Reits) decreased from approximately 96 per cent as at March 31, 2020 to 95 per cent as at March 31, 2021.

The pandemic had varying degrees of impact on individual retail and office S-Reits, which were sub-sectors that saw the biggest dips in average occupancy rates of 2.1 and 1.9 percentage points (ppt) respectively.

However, there were three retail and office S-Reits that maintained or saw a boost in occupancy rates (based on reported data and barring methodology differences): IReit Global IREIT Global, Elite Commercial Reit EliteComREIT GBP and Frasers Centrepoint Trust Frasers Cpt Tr.

Frasers Centrepoint Trust (FCT), the only S-Reit with 100 per cent retail assets in Singapore, was the sole retail S-Reit which did not report a deline in portfolio occupancy from a year ago.

The Reit' s retail portfolio occupancy rate stood at 96.1 per cent as of Mar 31, 2021.

 

 

DBS - Market View Update

Setting up for an endemic COVID-19
* Support measures revealed in yesterday' s ministerial statement came as no surprise:
- Wage subsidy of between 10&ndash 50% under the Jobs Support Scheme from 16 May &ndash 25 July which coincides with Singapore' s shift to heightened alert
- Rental waivers for market stallholders and cash aid for private-hire car and cab drivers
- New bridging loan programme for an additional 6 months from 1 Oct 2021 &ndash 31 Mar 2022
* The extra aid will cost S$1.2bn while smaller relative to past measures, signifies that the economy is adapting with only targeted support needed
* As Singapore shifts towards an endemic COVID-19, the focus will be on vaccinations and new hospitalisations caused by COVID-19 rather than the number of new cases
* Maintain our view that domestic reopening names (ComfortDelGro, FCT, MCT, Koufu) should lead
* Travel and leisure stocks (SATS, Genting, CDL HT, FEHT) to lag as the reopening of borders for SHN-free leisure travel to Singapore from top 5 countries by tourism receipts (pre-COVID: China, Indonesia, India, Australia, Japan) may not occur any time soon 
 

 

DBS - Market View Update

STI support at 3060 - July rebound should follow the June correction
- S& P500 fell 1.3% on Friday on rising interest rates uncertainty after a FED official said rates could rise as soon as end-2022
- Cyclicals led the decline while sectors with growth seen as more resilient to a rising interest rates outperformed.
- Energy, utilities, and financials underperformed while consumer discretionary, technology and telecom sectors outperformed
- The wide trading range from 3200-3300 (13.78x +0.5SD 12-mth fwd PE) to 3060 (below 13.18x average 12-mth fwd PE) should continue in coming month/s
- July is a seasonally positive month, and this year should be no exception, underpinned by interim dividend announcement for banks (UOB, OCBC) and technical rebound for the broader market
- We think the current decline should find support at 3090-3100 or worst case 3060
- While the current heightened measures will impact 2Q results, we are positive on domestic reopening names beyond the upcoming reporting season as Singapore prepares for a more robust and sustainable reopening with rising vaccination rates (e.g. FCT, Mapletree Commercial Trust, Lendlease Global, Keppel REIT, ComfortDelgro)
 

 

Breakout uptrend ...