SGX Weekly Review｜SingPost Jumps 5%; Keppel DC Reit Gains 3%; Focus on CPI and Interest Rate Decisions

Singapore stocks fell slightly this week, with the STI down 0.2%, as investors assess Trump's policies after his inauguration.

Meanwhile, Singapore central bank eased monetary policy, first time since March 2020; the December core inflation hit its lowest since November 2021.

In terms of individual stocks, SingPost rose 4.7%, Sabana Industrial REIT rose 4.1%, Keppel DC REIT rose 2.7%, Hong Kong Land rose 2.2%; Yangzijiang Shipbuilding rose 2.1%, Singtel rose 1.9%, ST Engineering and SIA Engineering rose 1.3%, SGX rose 1.2%, while Sats fell 4.7%, Mapletree Industrial Trust fell 1.8%, DBS fell 0.8%, SIA fell 0.6%.

Market News

Singapore Central Bank Eases Monetary Policy, First Time Since March 2020

Singapore's central bank on Friday loosened its monetary policy, the first such move since 2020, saying it expects inflation and growth to be slower than it initially forecast this year.

The Monetary Authority of Singapore (MAS), which manages monetary policy by targeting the exchange rate rather than interest rates, said it will reduce slightly the slope of the policy band known as S$NEER, or the Singapore dollar nominal effective exchange rate.

It said there would be no change to the width of the policy band or the level at which it is centred.

"This measured adjustment is consistent with a modest and gradual appreciation path of the S$NEER policy band that will ensure medium-term price stability," MAS said.

Singapore December Core Inflation Hits Its Lowest Since November 2021

Singapore's key consumer price gauge rose 1.8% in December from a year earlier, more than economist forecasts and the lowest in more than three years, official data showed on Thursday.

The core inflation rate, which excludes private road transport and accommodation costs, was above the 1.7% forecast by a Reuters poll of economists and the 1.9% rate seen in November.

Headline inflation was 1.6% in annual terms in December, higher than economists' forecast of 1.5%.

Singapore Forms Committee on Election, Signalling Polls Ahead

Singapore's prime minister has formed a committee to review electoral boundaries, the poll body said on Wednesday, an indicator that a general election in the city-state could come soon.

Singapore typically calls an election within two months of the committee publishing its report on the review.

The review looks at boundaries of electoral divisions based on population changes and the subsequent report is used to determine the number of candidates in each constituency and also, the number of parliamentarians.

The Asian financial hub must hold its general election by November this year, but Prime Minister Lawrence Wong has the remit to call polls earlier.

SingPost Names Former CFO of Australia Business Isaac Mah as Group CFO

SingPost has appointed Isaac Mah as its group chief financial officer (CFO), effective Wednesday (Jan 22).

This comes after the group in December last year announced that it intended for Mah, who was then the CFO of its Australia business Freight Management Holdings, to return to Singapore and assume the position.

Mah, 41, will take guidance from board chairman Simon Israel, said SingPost.

CDL’s Kiwi Unit Makes NZ$2.25-a-Share Offer to Delist M&C New Zealand

City Developments Ltd’s (CDL) wholly owned subsidiary intends to purchase all the fully paid ordinary shares in hotel company Millennium & Copthorne Hotels New Zealand (MCK) that it does not already own, at NZ$2.25 a share.

The maximum aggregate cash consideration payable by CDL Hotels Holdings New Zealand (CDLHH NZ) is NZ$57.3 million (S$43.7 million).

On Monday (Jan 20), CDL said the offer is being made with a view to delist and privatise MCK, which will “simplify the ownership structure” of CDL’s investment entities in the country.

Ascott Bags 16 New Signings Under Oakwood Portfolio to Tap Growing “Bleisure“ Market

Ascott, the wholly owned lodging business unit of CapitaLand Investment, has secured 16 new signings under the Oakwood brand in 2024, up 30 per cent from the previous year.

This includes a bumper crop of four Oakwood Premier signings into new cities – Adelaide, Bali, Shenzhen and Singapore – since the brand refreshed early last year, said the group on Thursday (Jan 23).

With the new signings, Ascott’s Oakwood portfolio now comprises nearly 100 properties that are both operational and in the pipeline. Its global footprint spans 14 countries and 50 cities, including Tokyo, Jakarta, Beijing and Manila.

Mapletree Logistics Trust Posts 11.1% Fall in Q3 DPU to S$0.02003

The distribution per unit (DPU) for Mapletree Logistics Trust (MLT) fell 11.1 per cent to S$0.02003 for its third quarter ended Dec 31, 2024, from S$0.02253 in the prior year.

Revenue was down 0.9 per cent at S$182.4 million for the third quarter, from S$184 million in the year-ago period.

This was mainly due to lower revenue contribution from China, the absence of contribution from divested properties, and depreciation of various regional currencies against the Singapore dollar, the manager said on Tuesday (Jan 21).

Sabana Reit Posts 32.2% Rise in H2 DPU to S$0.0152, with 10% Kept for Capital Management

SABANA Industrial Real Estate Investment Trust (Reit) posted a distribution per unit (DPU) of S$0.0152 for the half-year ended Dec 31, 2024, up 32.2 per cent from S$0.0115 in the year-ago period.

The increase came even as about 10 per cent of total income available for distribution in FY2024 was retained for “prudent capital management”, in view of additional costs incurred and to be incurred during the internalisation of the Reit manager, according to a bourse filing on Tuesday (Jan 21).

Further retention of distributable income may be required for FY2025, it said.

Keppel DC REIT's DPU Rose 13.2% In The Second Half Of The Year

The latest results released by Keppel DC REIT show that the distribution per unit (DPU) of the REIT in the second half of the year ending December last year was S$0.04902, an increase of 13.2% year - on - year. The full - year DPU increased by 0.7% year - on - year to S$0.09451.

The distributable income in the second half of the year increased by 20.2%, rising from S$76.4 million in the same period of the previous year to S$91.9 million. Revenue grew by 8.8% to S$153.1 million.

The Week Ahead

The Singapore market will be closed from Wednesday, 29 January 2025 to Thursday, 30 January 2025 local time for Chinese Lunar New Year.