CICT, CapitaLand Ascendas REIT and SGX in focus: Weekly Review with SIAS

What happened?

In this week's Weekly Market Review in partnership with Securities Investors Association Singapore (SIAS), we discuss key developments in the global equity market and also share more about CapitaLand Integrated Commercial Trust (CICT), CapitaLand Ascendas REIT (CLAR), and SGX.

Watch the video to learn more about what we are looking out for this week.

Weekly Market Review

3:00 - Macro Update

• The S&P 500 declined by 0.2% and the Nasdaq fell by 0.5% due to uncertainty following Donald Trump's announcement of tariffs on imports.
• 25% tariffs on Mexico and Canada and 10% levy on China imported was set to take effect on February 1.
• However, a subsequent 30-day delay for Mexico and Canada was announced on Monday, hinting at ongoing negotiations.
• Concerns arose as the tariffs were seen as inflationary, potentially slowing US Fed rate cuts.
• Additionally, this would also disrupt global trade as strengthening the US dollar, would pressure emerging markets.
• Reports estimated the tariffs could increase the US consumer price index by up to 24 basis points.
• In contrast, Singapore’s STI rose by 0.1%, benefiting from positive corporate earnings and its perception as a "safe haven".

6:18 Singapore market updates

STI Top performers:

• SGX
• Wilmar
• ST Engineering
• CapitalLand Investment
• CapitalLand Ascendas REIT

STI worst performers:

• ThaiBev
• Jardine Matheson
• Seatrium
• Jardine Cycle & Carriage
• SATS

7:15 - CapitaLand Integrated Commercial Trust (CICT)

• Capitaland Integrated Commercial Trust shares stabilised between $1.90 and $2 after declining from $2.15 since September 2024.
• Despite economic fluctuations, CICT maintained stable distributions, totaling 10.88 cents per unit for FY2024.
• Gross revenue rose 1.7%, while net property income increased 3.4%, driven by strong retail asset performance, though office assets weakened slightly.
• Portfolio occupancy rose to 99.3% for retail and 94.8% for office spaces.
• Positive rental reversions were 8.8% for retail and 11.1% for office properties.
• Healthy balance sheet, with a leverage ratio of 38.5% as of Dec 2024, as compared to 39.4% as of Sep 2024.
• Asset enhancement initiatives at IMM are ongoing, with Phase 3 completion expected in Q3 2025.
• With a price-to-book ratio of 0.93 and a dividend yield of 5.6%, CICT presents a stable investment option for REIT-focused investors.

Related Links:

• CapitaLand Integrated Commercial Trust share price history and share price target
• CapitaLand Integrated Commercial Trust dividend history and dividend forecasts

11:15 - Capitaland Ascendas REIT

• Capitaland Ascendas REIT saw a post-results bounce despite a 1.1% decline in gross revenue due to prior divestments.
• Net property income rose by 1.4% as operating expenses were reduced, leading to a 3.4% increase in distributable income and a 3.2% rise in DPU to 7.681 cents.
• Portfolio occupancy improved to 92.8%, with gains in Singapore, the US, and Australia.
• Positive rental reversions averaged 8.6%, with expectations for mid-single-digit growth in 2025.
• The REIT maintained a strong balance sheet with a leverage ratio of 37.7% and announced asset enhancement initiatives and strategic divestments.
• Valuation is at 1.16 times price-to-book, which is above historical average, while a 5.8% dividend yield, is close to historical average.

Related Links:

• CapitaLand Ascendas REIT share price history and share price target
• CapitaLand Ascendas REIT dividend history and dividend forecasts

14:14 - SGX

• SGX shares surged to nearly $14, the highest since 2007, following strong fiscal first-half results ending December 2024.
• Revenue grew by 15.6%, while net profit rose by 20% year-over-year, driven by broad-based growth across derivatives, FX, and cash equities segments.
• An increase in securities daily average volume also boosted cash equities revenue.
• SGX announced a quarterly dividend of $0.09, totaling $0.18 for the first half, up from $0.17 previously.
• Investors are also anticipating the outcome of MAS's review to strengthen Singapore's equities market, expected by August 2025.
• Despite a PE ratio of 24 times and a dividend yield of 2.6%, both above historical averages, sentiment remains optimistic.

Related Links:

• SGX share price history and share price target
• SGX dividend history and dividend forecasts

19:27 - Technical Analysis

STI Technical Analysis

• The STI index reached an all-time high of 3,921 points before pulling back to 3,891.
• With no clear resistance level beyond the psychological target of 4,000, potential resistance may be at 3,950 or 4,000 points.
• Key support levels include the 20-day moving average at 3,813-3,822 points and the 50-day exponential moving average at 3,785 points.
• Technical indicators remain positive, with the MACD showing a strong uptrend and divergence from the signal line, suggesting continued momentum.
• The RSI at 65 indicates a healthy trend, nearing the 70 overbought level, which may trigger a pullback.
• The index's resilience to previous pullbacks suggests continued strength, making it attractive for accumulation.

Dow Jones Technical Analysis

• The Dow Jones index fell 1% last Friday, erasing gains from a two-day winning streak.
• The index remains below its December all-time high of 45,073 points and is currently pulling back.
• Key support levels are the 50-day moving average at 43,712 points and the 100-day exponential moving average at 43,041 points.
• The January rally, driven by earnings from major US banks, is losing momentum as the MACD nears a potential negative crossover, signaling a possible downtrend.
• The RSI has dropped from 68 to 54, indicating weakened momentum near the neutral 50 mark.
• Historical patterns suggest further retracement before a potential rebound.

S&P 500 Technical Analysis

• The S&P 500 fell 0.95% last Friday, following a week marked by volatility due to threats from Donald Trump.
• Despite a Monday dip, the index recovered with three consecutive winning sessions before pulling back on Friday.
• The market appears poised for consolidation, with resistance at 6,128 points and support at the 50-day moving average of 5,980 points, with the next support at the 100-day moving average at 5,881 points.
• The MACD indicator shows limited momentum, nearing a potential negative crossover, while the RSI sits at a neutral 51, reflecting a lack of strong market direction amid mixed earnings season impacts and Trump's market-influencing comments.

Nasdaq Composite Technical Analysis

• The Nasdaq Composite experienced a three-day winning streak last week but suffered the heaviest loss among major US indices on Friday due to renewed threats from Donald Trump.
• Closing at 19,523 points, it now hovers near the 50-day moving average of 19,461 points.
• The negative MACD reading suggests a continued downtrend, with resistance forming as attempts to break higher, faced selling pressure
• Support remains at the 100-day moving average of 19,022 points, offering a margin of safety for this highly volatile index, which remains sensitive to policy impacts.
• The RSI has gone below the 50 neutral mark, with negative momentum likely to persist. 

What to look out for this week

• Monday, 10 Feb: DBS earnings
• Wednesday, 12 Feb : Digital Core REITl earnings, US CPI Data
• Thursday, 13 Feb :  6-month Singapore T-bill auction

Check out the full list of Singapore stocks, REITs and ETFs with upcoming dividend payments with our dividend calendar.

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