Mapletree Logistics Trust and MPACT 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

2:04 - Macro Update

• The S&P 500 fell by 1%, marking its first weekly decline after six consecutive weeks of gains.
• Nasdaq rose by 0.2%, driven by the improved sentiment given the strong earnings reported by Tesla.

• The STI had a 1.3% decline, back to below the 3,600 levels, due to losses from the Singapore REITs. 

• The US 10-year government bond yield exceeded 4.2% from a low of about 3.6% in September.

7:00 - Singapore market updates

STI Top performers:

• DFI Retail Group Holdings Ltd
• SATS
• Jardine Cycle & Carriage Ltd
• Keppel Ltd

STI worst performers:

• Sembcorp Industries Ltd
• Frasers Logistics & Commercial Trust
• CapitaLand Investment
• CapitaLand Integrated Commercial Trust
• Mapletree Logistics Trust

8:25 - Mapletree Logistics Trust

• Share price recently declined to $1.37 as expectations shifted towards less aggressive Fed actions and due to MLT’s reported earnings.
• MLT’s gross revenue and net property income each declined by about 2% year-on-year in the third quarter this year.
• Occupancy rate improved slightly to 96% from 95.7% in June, though China assets continue to underperform, holding steady at 93.1% occupancy.
• The portfolio saw negative rental reversions of overall -0.6%, largely due to China, where reversions fell 12.2%. Excluding China, rental reversions were positive at 3.6%, with Singapore’s reversion rate notably increasing to 12.5%.
• MLT’s leverage ratio rose slightly to 40.2%, and its interest coverage ratio held steady at 3.5 times.
• Distribution per unit dropped by 10.6% to $2.027 due to higher borrowing costs.
• Price-to-book ratio is approximately 1.03x, and the dividend yield stands at 6.6%, both slightly above historical averages.

Read more: Mapletree Logistics Trust DPU falls by 10.6%: Our Quick Take

Links:

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

12:28 - Mapletree Pan Asia Commercial Trust

• MPACT saw significant share price movement with price falling to $1.34 after its recent earnings report.
• MPACT's gross revenue dropped by 6%, and net property income declined by 8.5% year-on-year.
• Singapore Properties show strong performance, with positive rental reversions, particularly in assets like VivoCity.
• Japan properties show weak performance with negative rental reversions (-9.5%) and a sharp drop in occupancy from 94.2% to 82.3%. A major tenant, Fujitsu, plans not to renew its lease on one key property by March 2026, leading to concerns over future occupancy.
• The valuation of three Japan properties (Makuhari) declined by approximately $113.8 million since March 2024, contributing to the recent share price decline.
• Distribution per unit DPU decreased by 11.6% to $0.198.
• Price-to-book ratio is 0.78x, below its historical average, while its dividend yield of 6.7% is higher than historical average.

Related Links:

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

20:41 - Technical Analysis

Dow Jones Technical Analysis

• The Dow Jones Index dropped by 0.61% last Friday, shedding 259 points.
• The MACD is currently negative, indicating substantial downtrend momentum.
• The RSI has fallen below the neutral 50 mark to 46, reflecting weak momentum, which may lead to further declines toward the support level.

S&P 500 Technical Analysis

• The S&P 500 experienced a milder drop compared to the Dow Jones, largely because the "Magnificent Seven" contribute about 20% of the S&P’s market cap, shielding it somewhat from profit-taking that impacted the Dow.
• The S&P 500's support is around the 20-day moving average near 5,800 points, with resistance close to its year-to-date high of 5,900 points.
• The MACD is currently negative, suggesting some downward momentum.
• The RSI is at 56, indicating mild positive momentum, which could sustain short-term upward movement.

Nasdaq Composite Technical Analysis

• Reached a new intraday all-time high of 18,690 points but fell short of closing at an all-time high, as some investors took profits at this level.
• The MACD indicator is slightly negative at -9.97 points, signaling moderate momentum but not a strong trend.
• The RSI is healthier at 60, showing positive momentum, which may support further gains, potentially pushing the index to 18,700 points over the next two weeks if tech earnings impress.

STI Technical Analysis

• The STI fell by 1.3% last week with the year-to-date high remaining at 3,652 points, which is about 1.5% above the current level.
• Reaching previous highs, such as 3,900, could be challenging as the STI faces resistance near 3,650 point.
• It is likely the STI will hover around this level without pushing toward all-time highs in the near term.

What to look out for this week

• Monday, 28 Oct: Mapletree Industrial Trust and CDL Hospitality Trust earnings
• Tuesday, 29 Oct: CapitaLand China Trust, CapitaLand Ascott Trust and Google earnings
• Wednesday, 30 Oct: Microsoft, Meta earnings
• Thursday, 31 Oct: Apple and Amazon earnings
• Friday, 1 Nov: US nonfarm payroll data

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

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