Keppel DC REIT 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 Keppel DC REIT.

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

Weekly Market Review

1:52 - Macro Update

• The S&P 500 dropped 1.5% to below 5300, reflecting a normalisation after the prior week’s strong gains. Bond yields also eased, with the US 10-year yield falling from 4.5% to 4.2% amid reduced tariff concerns.
• Singapore Outperformance: The STI surged 5.6%, rebounding from the previous correction triggered by tariff announcements. The rally was supported by easing bond yields and improved sentiment.
• Recovery in Logistics REITs: Mapletree Logistics Trust and Frasers Logistics & Commercial Trust saw share price recoveries as bond yields dropped and concerns over logistics demand eased.
• UOB rose 7.2% and SGX gained 8.2%, driven by expectations of increased trading volume from market volatility.
• Most STI stocks posted gains, with only one major loser - Wilma, which fell 1.6% due to uncertainty from trade tariffs affecting its China business.

STI Top performers:

• DFI Retail Group
• Mapletree Logistics Trust
• Frasers Logistics & Commercial Trust
• SGX
• UOB

STI worst performers:

• UOL
• Sembcorp Industries
• Venture
• Hongkong Land
• Wilmar

5:45 - Keppel DC REIT

• The REIT now holds 24 data centres across 10 countries with total assets under management of $4.9 billion, with 66.3% of the portfolio based in Singapore.
• In addition to Singapore, the REIT has assets in Australia, China, Japan, and Europe, offering geographic diversification.
• Keppel DC REIT’s net property income rose 24% year-on-year to $88 million in Q1 2025, mainly due to the contribution from two new data centres in Singapore.
• Portfolio occupancy remained high at 96.5% in Q1 2025, and the REIT achieved positive rental reversions of 7%.
• Finance cost decreased slightly from $13 million to $12.5 million as interest rates began easing following Fed rate cuts since September 2024.
• Distribution per unit increased by 14.2% to 2.503 cents, supported by higher income and lower finance costs.
• Gearing stands at 30.2%, providing headroom for future acquisitions if opportunities arise.
• Interest coverage ratio is strong at 5.8 times, indicating a healthy buffer against rising borrowing costs.
• Even with a 10% fall in EBITDA or a 100 basis point rise in interest rates, the REIT’s interest coverage remains at a comfortable level.

Related Links:

• Keppel DC REIT share price history and share price target

11:20  - Technical Analysis

Straits Times Index

• STI rebounded over 5% last week after a prior 8.9% drop, recovering about half of the recent losses.
• The MACD indicator has turned positive, signaling a potential return to an uptrend in the near term.
• STI has crossed above its 200-day moving average at 3,667, a key support level indicating the rebound is intact as long as it stays above this mark.
• RSI has risen above the neutral 50-point level, reflecting growing positive momentum in the current rally.
• Immediate resistance lies around 3,816 to 3,840, which needs to be broken before testing the March high near 4,005.
• If STI breaks the resistance zone, there's a strong chance it could approach the 4,000 level again.
• Given global trade uncertainties, Singapore is viewed as a safe haven, and STI could offer portfolio resilience during global market volatility.

Dow Jones Industrial Average 

• The Dow fell last week, especially on Thursday, due to UnitedHealth’s earnings miss, which led to a 22% drop in the stock and a 1.33% drop in the index that day.
• The index is currently trading below all its major moving averages, signaling weakness in price trend.
• MACD remains slightly positive, but is at risk of turning negative as the MACD line is close to crossing below the signal line.
• Sentiment was further shaken by reports that Trump may consider replacing Fed Chair Jerome Powell, adding uncertainty to markets.
• RSI stands at 39, below the neutral 50 level, indicating weakening momentum and lack of buying strength.
• The immediate support is around 37,600, near the lower Bollinger Band; this is the key level to watch for potential bounce.
• Resistance remains at 42,205, which is the 200-day moving average, and the index is unlikely to break this unless a strong catalyst emerges.

S&P 500 Index

• The S&P 500 ended the week slightly lower, despite a small gain of 7 points on Thursday, reflecting continued market weakness.
• The index remains pressured by the 20-day moving average, with resistance identified at 5,453 points.
• Support lies near 4,979 points, at the lower Bollinger Band, with a high chance the index may retest the 5,000 level soon.
• The MACD indicator is still positive, but recent sessions show lack of direction, with mixed signals from earnings and political news.
• Market sentiment was dampened by comments from the Trump camp and talk of extreme tariff hikes up to 245%, raising trade war concerns.
• RSI stands at 41, below the neutral 50 mark, indicating weak momentum and limited buying strength.
• Overall, indicators suggest the S&P 500 is still under pressure, and any strong uptrend is currently unlikely without a positive catalyst.

NASDAQ Composite Index

• NASDAQ fell slightly by about 20 points on Thursday and remains under pressure from the 20-day moving average around the 16,955–17,000 level, which is acting as resistance.
• Immediate support lies near 15,253, with a high likelihood of the index retesting the 15,000 level, which is about 1,200 points below last Friday’s close.
• The MACD histogram shows weakening momentum, and both the MACD and signal lines are moving sideways, indicating no clear direction.
• RSI is at 41, showing weak momentum and staying below the neutral 50 level, signaling limited buying pressure.
• The market is currently in a holding pattern, awaiting new catalysts or announcements to determine the next direction.
• Tesla earnings this week could influence the NASDAQ's movement
• Ongoing trade tensions and Trump tariff fears continue to weigh on market sentiment, potentially leading to further downside pressure on tech stocks.

What to look out for this week

• Tuesday, 22 April: Keppel Infrastructure Trust, ParkwayLife REIT earnings, Tesla earnings
• Wednesday, 23 April: Mapletree Logistics Trust, Digital Core REIT earnings
• Thursday, 24 April: Keppel, Suntec REIT, OUT REIT earnings, Alphabet earnings, Singapore 6-month T-bill auction
• Friday, 25 April: CICT, Mapletree Pan Asia Commercial Trust earnings, SSB application closing date

Get the full list of stocks with upcoming dividends here. 

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