Mapletree Logistics Trust and Mapletree Pan Asia Commercial Trust 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 Mapletree Logistics Trust and Mapletree Pan Asia Commercial Trust.

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

Weekly Market Review

2:38 - Macro Update

• Last week, markets reacted to policies announced by Trump following his inauguration, with the S&P 500 gaining 1.7%, as no immediate tariffs were introduced, offering relief.
• In contrast, the STI declined 0.2%, driven by the start of earnings season.
• US inflation eased, with core CPI rising 0.2% month-on-month in December, raising hopes for potential Fed rate cuts.
• However, rates are expected to remain unchanged in upcoming meetings until a possible cut in June.
• US 10 10-year government Bond yields remained elevated at 4.6%, reflecting inflation concerns tied to Trump’s policies.

5:17 Singapore market updates

STI Top performers:

• Hongkong Land
• Venture
• Yangzijiang
• Singtel
• ST Engineering
• 

STI worst performers:

• SATS
• Mapletree Industrial Trust
• CapitaLand Investment
• CapitaLand Ascendas REIT
• Sembcorp Industries

6:00 - Mapletree Logistics Trust

• Mapletree Logistics Trust is trading at $1.26, near recent lows, after reporting weaker earnings.
• Gross revenue and net property income declined, with borrowing costs rising, leading to an 11.1% drop in distribution per unit to 2.003 cents from 2.253 cents last quarter.
• The portfolio's overall occupancy improved slightly to 96.3%.
• However, weakness in China, where occupancy fell to 93.5% and rental reversions were down 10.2%, continues to weigh on performance.
• Excluding China, portfolio rental reversions were a positive 5.4%, compared to 3.4% overall.
• Healthy balance sheet, with a leverage ratio of 40.3% and an interest coverage ratio of 3.4 times.
• Recent asset divestments in Malaysia and Singapore exceeded valuation.
• Currently trading at 0.91 times price-to-book, below the sector and historical averages. 

Related Links:

• Mapletree Logistics Trust share price history and share price target
• Mapletree Logistics Trust dividend history and dividend forecasts

10:00 - Mapletree Pan Asia Commercial Trust

• Mapletree Pan-Asia Commercial Trust is trading near its 52-week low at $1.20.
• Gross revenue was down 7.4% while net property income was down 8.5%.
• This led to a 9.1% drop in distribution per unit from 2.2 cents to 2 cents.
• Singapore assets, such as VivoCity with 99.9% occupancy and strong rental reversions of 16.9% remain robust.
• However, overseas properties, particularly in China with 84.3% occupancy have declined from 87.1% while  Japan with 82.6% occupancy pulled down the portfolio.
• This caused the portfolio-wide occupancy dropped to 90%, with overall rental reversions at a modest +4.6%.
• Leverage ratio stands at 38.2%, with an interest coverage ratio of 2.8 times.
• Currently, trading at 0.7 times price-to-book, below historical and sector averages, offering a dividend yield of 6.7%, which also exceeded historical average.

Read also: 

Mapletree Pan Asia Commercial Trust DPU falls by 9.1%: Our Quick Take

Related Links:

• Mapletree Pan Asia Commercial Trust share price history and share price target
• Mapletree Pan Asia Commercial Trust dividend history and dividend forecasts

15:03 - Technical Analysis

STI Technical Analysis

• The STI dipped slightly, losing two points despite significant gains in US markets.
• Expectations for a rebound dimmed following Trump’s 25% tariff in Colombia, which dampened market sentiment and triggered a risk-off mode ahead of Chinese New Year.
• The STI broke below the psychological 3,800-point level this morning, with the next key support at 3,750, defined by the 50-day exponential moving average and the lower Bollinger Band.
• Momentum indicators suggest a lack of direction, with the MACD showing negative momentum and the RSI at a neutral 50, pressured by its 14-day moving average of 53.
• A quiet week is expected, with STI likely range-bound below 3,800 until post-Chinese New Year activity picks up.

Dow Jones Technical Analysis

• The Dow Jones Index has been rallying for two weeks, testing the upper Bollinger Band at 44,516 points last week before forming a red candle on Friday, signaling a possible pause.
• Key support levels are the 50-day exponential moving average at 43,250 and the 20-day moving average at 43,000.
• Resistance lies at the December all-time high of 45,073 points.
• Currently pivoting around 44,000, the index remains in an uptrend, supported by a strong MACD reading, with the healthy RSI at 64, with some room before reaching the overbought threshold of 70.
• A pullback to the 43,250 support level is possible.
• Accumulation opportunity at the 43,250 level to retest the 45,000 resistance level.

S&P 500 Technical Analysis

• The S&P 500 hit a new intraday high of 6,128 points on Friday before pulling back slightly to close at 6,101 points, breaking the December high and reaching a new all-time high.
• This broad rally aligns with the narrative that tech sector gains are expanding across other sectors.
• The MACD indicates strong positive momentum, suggesting the rally could continue, with the next resistance level at 6,200 points.
• The RSI stands at 61, signaling healthy momentum with room to rise before nearing the overbought level of 70.
• If a pullback occurs, key support levels at the 20-day and 50-day moving averages, around 5,959 to 5,986 points, could offer accumulation opportunities.

Nasdaq Composite Technical Analysis

• The Nasdaq Composite Index has not yet reached a new all-time high but may do so if upcoming tech earnings this Wednesday and Thursday are positive.
• The previous high of 20,200 points may be tested this week with favourable results.
• Momentum remains positive, as indicated by a slightly uptrending MACD, while the RSI is at 57, signalling moderate momentum. If the RSI surpasses 60, the uptrend may strengthen further.
• In case of a pullback, key support levels are at the 50-day exponential moving average of 19,387 points and the lower Bollinger Band at 18,954 points, which could present buying opportunities for long-term gains.

What to look out for this week

• Monday, 27 Jan: CapitaLand Ascott Trust, Keppel REIT earnings
• Tuesday, 28 Jan: Lunar New Year Eve, AIMS APAC REIT, Microsoft earnings
• Wednesday, 29 Jan: Lunar New Year Holiday, Meta, Amazon earnings
• Thursday, 30 Jan: Lunar New Year Holiday, Fed meeting decision, Apple earnings

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

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