DBS and Lendlease REIT earnings 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 the volatility in global financial markets and also share more about the following:

• DBS
• Lendlease REIT

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

Weekly Market Review

2:00 - Macro Update

• The S&P 500 closed flat at 5,344, while the Nasdaq and Dow Jones saw minor losses.
• The Straits Times Index (STI) dropped 3.5% to 3,262, a significant weekly decline.
• The Bank of Japan’s interest rate hikes led to the unwinding of the carry trade, causing the Nikkei 225 to fall over 12%, its largest drop since 1987.
• US 10-year bond yields fell below 2.7% before slightly recovering to 2.86%.
• Markets now expect a near-certain Fed rate cut in September, with a 0.25% or 0.5% reduction likely.
• By November, a total 0.75% rate cut is possible

7:49 - Singapore market updates

STI Top performers:

• Hongkong Land share price
• Jardine Matheson share price
• Sembcorp Industries share price
• SGX share price
• Jardine Cycle & Carriage share price

STI Worst performers:

• Mapletree Pan Asia Commercial Trust share price 
• SATS share price
• UOB share price
• CapitaLand Investment share price
• Venture Corporation share price

8:42 - DBS

• DBS shares fell from its all-time high of over $38 to $33.57.
• The bank reported a net profit increase of 6% year-over-year to $2.8 billion in the second quarter of 2024 (2Q24)
• The group net interest margin remained steady at 2.14%, with a slight increase in the commercial book margin to 2.83%.
• Fee income was resilient at $1.26 billion, bolstered by $186 million from the wealth management segment.
• The non-performing loan (NPL) ratio was stable at 1.1%.
• The interim dividend declared was $0.54 per share for Q2, bringing the first-half total to $1.08, which is higher than last year.
• The current dividend yield is 6.4%, with a price-to-book ratio of 1.5x, slightly above historical averages.

Read our analysis on DBS 2Q24 earnings here. 

Related links:

• DBS share price and share price target
• DBS dividend history and dividend forecast

14:14 - Lendlease REIT

• Lendlease REIT's 2H FY 2024 revenue and net property income declined year-over-year.
• Distributable income dropped 19%, and distribution per unit fell 21% to 1.77 cents.
• The portfolio is 90% in Singapore and 10% in Milan, with 62% in suburban retail and 10% in grade A commercial buildings.
• Retail assets maintained nearly 100% occupancy
• Milan assets, with 74% occupancy, are facing challenges, and repositioning efforts are underway for better rents.
• Distributable income fell significantly due to higher borrowing costs, with a gearing ratio at 41% and rising debt costs.
• The interest coverage ratio is 3.2 times, and adjusted interest coverage ratio is at 1.7 times.
• The price-to-book valuation is 0.7 times, and the dividend yield is 7.2%, but further distribution declines could impact the yield.

Related links:

• Lendlease REIT share price and share price target
• Lendlease REIT dividend history and dividend forecast

19:23 - Technical Analysis

STI Technical Analysis

• The STI dropped to 3,198 points last Tuesday, touching a key uptrend support line.
• The MACD shows subsiding downtrend momentum, indicating a potential reversal.
• The RSI recovered from below 30 to 32 points, suggesting a possible near-term bottom.
• The next resistance is at the 200-day moving average around 3,250 points.
• The 3,200–3,250 point zone is a good accumulation area for a potential rebound.

Dow Jones Technical Analysis

• The Dow Jones fell by 1.5% last week, reflecting yen carry trade unwinding.
• The index is near the 200-day moving average at 38,100 points.
• The MACD shows subsiding negative momentum, while the RSI recovered to 47 points.
• The next support is at the 200-day moving average at 38,100 points.
• The Dow Jones may rebound if it holds above the 200-day moving average.

S&P 500 Technical Analysis

• The S&P 500 nearly entered correction territory but rebounded above the 100-day moving average.
• The MACD shows early signs of convergence, with the RSI recovering to 45 points.
• The next support is the 100-day moving average at 5,300 points.
• Accumulation in the 5,200–5,300 point zone is advisable for potential upside.

NASDAQ Composite Technical Analysis

• The NASDAQ Composite hit an oversold RSI of 29.8 points last Monday, triggering a buying signal.
• The MACD indicates subsiding negative momentum, suggesting the worst may be over.
• The index is around 16,776 points, with support at the 200-day moving average at 16,039 points.

What to look out for this week

• Tuesday, 13 August: CapitaLand Integrated Commercial Trust (CICT) earnings, Singapore 2Q GDP data
• Wednesday, 14 August: ST Engineering, Genting Singapore, CDL Hospitality Trust earnings, US Consumer Price Index (CPI) data
• Thursday, 15 August: 6-month Singapore T-bill auction, Alibaba earnings

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

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