Weekly Review with SIAS: Global stock indices bounce

What happened?

In week's Weekly Market Review in partnership with Securities Investors Association Singapore (SIAS), we discuss the rebound in global stocks last week as geopolitical tensions in the Middle East eased and US tech stocks largely reported positive earnings.

We also share more about the following REITs which recently released their operational updates:

• CapitaLand Ascendas REIT
• Mapletree Industrial Trust
• Mapletree Pan Asia Commercial Trust

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

Weekly Market Review 

1:32 - Macro Update

• Global stock indices rebounded last week due to the easing of geopolitical tensions in the Middle East, with the S&P 500 up by 2.7% and the Nasdaq up by 4.2%, led by gains in tech stocks. The STI also saw improved momentum, up by 3.2%.
• Market volatility has decreased, as measured by the VIX, but investors should still keep an eye on the rising US government bond yields, which have been steadily increasing since the start of the year.
• There is an upcoming Fed meeting on May 1st, and interest rates are unexpected to remain unchanged. The pace of rate cuts is slowing down, and there might only be one rate cut in 2024 coming through in September.

4:0 - Best and worst performers in the Straits Times Index

Top Performers:

Worst Performers:

5:20 - Singapore market updates 

CapitaLand Ascendas REIT

• CapitaLand Ascendas REIT reported a decline in occupancy rate but positive rental reversions, with a dividend yield of 5.8%, just below the historical average of 6.1%.
• The balance sheet remains healthy, with gearing below 40% and 82.6% of debt fixed.
• Asset redevelopment and enhancement initiatives are underway, with an estimated total cost of $551 million.

Read more analysis on CapitaLand Ascendas REIT here.

Mapletree Industrial Trust

• Mapletree Industrial Trust reported an increase in gross revenue and net property income, with a dividend yield of 5.7%, below the historical average of 6%.
• The share price has been more resilient than CapitaLand Ascendas REIT 

Read more analysis on Mapletree Industrial Trust here .

Mapletree Pan Asia Commercial Trust

• Mapletree Pan Asia Commercial Trust reported an increase in gross revenue and net property income, but a slight decline in occupancy rate.
• Dividend yield of 7%, which is above the historical average.
• Share price has been weaker, recently touching a one-year low.

Read more analysis on Mapletree Pan Asia Commercial Trust here .

18:03 Technical Analysis

Straits Times Index (STI)

Last week was a good week for the STI, with a rebound due to relief from the Middle East tensions.

• The STI reached a new year-to-date high of 3308 points on April 24th.
• The index has breached the upper bound of the Bollinger Band, indicating a strong uptrend.
• A pullback is expected, with the 20-day moving average (around 3230) as the first support level.
• The MACD indicator is showing signs of a subsiding uptrend, and the RSI is weakening.

Dow Jones Industrial Average (DJIA)

The Dow Jones Industrial Average had a good week, resting on the 100-day exponential moving average (around 37900).

• The MACD indicator is showing a positive sign, but the momentum is not strong yet.
• The RSI is slightly above the 14-day moving average, but still below the 50-point neutral mark.
• The 100-day moving average is a strong support level for the Dow Jones index.

S&P 500 Index 

The S&P 500 index had a good week, breaching the 20-day moving average.

• The MACD indicator is showing a convergence towards the signal line, indicating a potential crossover and a strong rebound.
• The RSI is weakening, but a crossover above the zero baseline would indicate a change in direction.
• The year-to-date high (5263 points) is still a target to be reached.

NASDAQ Composite Index

The NASDAQ Composite Index was the best performer last week, testing the 20-day moving average.

• The indicators are similar to the S&P 500, with a potential crossover and a resumption of the uptrend.
• The year-to-date high (16538 points) is still a target to be reached.
• The RSI has already breached the 50-point neutral mark, indicating a potential upside.

What to look out for this week

• Monday, 29 April: Mapletree Logistics Trust earnings
• Tuesday, 30 April: Parkway Life REIT earnings, Amazon earnings
• Wednesday, 1 May: Singapore Public Holiday, Federal Reserve Meeting
• Thursday, 2 May: DBS earnings, Apple earnings
• Friday, 3 May: US jobs data

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

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